AMFI has constituted a four member group to draft its feedback on the proposed amendments to the investment adviser regulations.
Four AMFI members – Anthony Heredia, CEO, Baroda Pioneer Mutual Fund, Ashish Somaiyaa, MD and CEO, Motilal Oswal Mutual Fund, Sanjay Sapre, President Franklin Templeton and Sourabh Nanavati, CEO, Invesco Mutual Fund will finalize AMFI’s feedback on the consultation paper before January 23.
Earlier, SEBI has floated third consultation paper to decide on ‘fee vs commission’ issue.
Here are the three key proposals of SEBI:
- You can either charge a fee on financial advice or get commission on MF distribution. You will no longer be able to offer both financial advice and execution/distribution. Neither RIAs including corporates can offer any distribution/execution services through a relative or by setting up a separate company/division or entity, nor can an individual distributor offer financial advice through a relative or by setting up a separate company/division or entity.
- Mutual fund distributors (MFDs) can only explain the features of products to client by ensuring the principle of ‘appropriateness’ of products to the client.
- Mutual fund distributors will have to disclose the list of fund houses they work with and can only talk about schemes of these fund houses.
