One of our readers has asked us this question:
I have been doing MF distribution as a sub-broker for the last 3 years for a national distributor. I would like to understand if I can work with another national distributor along with the existing national distributor.
Altaf Sayyad via email
Dear Altaf,
Yes, you can work with two national distributors and act as sub brokers for both of them simultaneously. In fact, you can tie up with any number of national distributors. There is no restriction on MFDs on tying up with multiple national distributors.
Another distributor has asked us:
I and my wife were sub brokers with a national distributor. However, I have started acquiring business in my own ARN by floating a distribution firm. Now, I would like to understand if we can transfer assets acquired before with the national distributor under my own ARN. If yes, will I get trail commission?
Abhijit B
Yes, both of you can transfer your assets built with a national distributor to your own ARN. Remember that such a transfer is allowed only if sub distributor transfers his/her entire assets from national distributors to own ARN. Also, both of you will be required to obtain an NOC from the national distributor and clients and inform respective AMCs about this transfer.
Keep in mind these things in mind before moving out your assets from national distributor ARN:
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List of your clients with mobile numbers and email IDs
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List of folios, client-wise and AMC-wise
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Letter for clients’ consent
You can refer our previous articles to get more details on this topic. Click here to read>>
