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‘Agents can use words like retirement coach if such a usage is linked to an insurance policy’

Ask us: MFDs cannot use words like consultant or coach to promote mutual fund distribution business.

by Nishant PatnaikDec 29, 2021

‘MFDs can use nomenclatures like wealth and money in their company name’

Ask us: However, MFDs cannot use nomenclatures like wealth management, money manager or financial planners in their individual/company name.

by Nishant PatnaikDec 15, 2021

‘AUM transfer: Trail commission of new distributor remains unchanged in most cases’

Ask us: Since AMFI norms say that assets can only be transferred to valid ARN, you will have to first ensure that the new ARN is KYD complaint.

by Nishant PatnaikDec 8, 2021

‘You can either transfer entire assets to NDs or do incremental business with them’

Ask us: Trail commission rate would be lower of commission on old ARN and new ARN.

by Nishant PatnaikDec 1, 2021

‘First year GST is applicable on incremental income and not on entire commission income’

MFDs who obtain their GST for the first time will have to pay GST only on income made post Rs.20 lakh in the first year.

by Nishant PatnaikNov 9, 2021

Commission earned on insurance policies are subject to GST from Re.1

Insurance companies follow reverse charge mechanism on commission income of up to Rs.20 lakh. Simply put, insurance companies pay GST on your behalf to the government.

by Nishant PatnaikOct 21, 2021

‘MFDs have to pay two types of taxes on their earnings - GST and income tax’

Currently, MFDs pay income tax on net income i.e. income earned after deducting GST and business expenses.

by Nishant PatnaikOct 20, 2021

‘MFDs reaching Rs.20 lakh income threshold will have to obtain GST registration within 30 days’

Ask us: Maharashtra MFDs earning between Rs.20 lakh and Rs.50 lakh can simultaneously apply for GST Composition Scheme to avail benefits of lower GST rates.

by Nishant PatnaikSep 2, 2021

‘MF transaction tagging for B30 incentives depends on PIN and not city’

Ask us: MFDs have to ensure that the pin codes given in MF folios match with those in the KYC form.

by Nishant PatnaikAug 3, 2021

‘MFDs/RIAs can distribute insurance policies and charge commission’

Ask Us: There is no regulation which stops MFDs from selling other financial products.

by Nishant PatnaikJul 23, 2021

‘MFDs can claim withheld commission if delay in DSC submission is due to covid’

Ask us: AMFI is likely to give relaxation to distributors if they fail to submit their DSC on or before due date due to valid reasons.

by Nishant PatnaikJun 24, 2021

‘You will have to carry ‘AMFI registered mutual fund distributor’ tagline along with your name’

Ask us: MFDs are required to carry this tagline along with their name/company name across all forms of communication.

by Nishant PatnaikMar 3, 2021

‘Any ARN holder can appoint other ARN holders as sub distributors’

Ask us: There is no norm, which stops MFDs be it an individual, HUF or corporate from appointing another ARN holder as sub broker.

by Nishant PatnaikFeb 20, 2021

‘Partnership firms can incorporate name change to existing ARN if one partner exits or dies’

Ask us: MFDs can simply request AMFI to incorporate a name change to the existing ARN.

by Nishant PatnaikFeb 18, 2021

‘Ensure that your client facing employees have EUIN’

You can map EUINs of all your employees with your ARN. This will help you keep a track on businesses procured by them.

by Nishant PatnaikJan 21, 2021

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