RIAs should be allowed to provide distribution services: AMFI

if one brother is ria and one is distributor and if ria brother given advice and 2nd brother executes then moto behind ria concept may get spoiled. 2nd brother can be a dsitributor, but two brothers can not deal the same customer.

SEBI stand on RIA's not to distribute mutual funds through a separate arm is a welcome move.
This removes the chaff from the grain and there is no room for compromise on advice.
OF course the RIA should be specific on the charges, either on the part of the AUM or an annual fees.

What's the point of Ria than? Let him distribute as well...why giving a backdoor entry..and what's will a person will do if there is no other person competent to take an arm or ria in the same family'... absolutely stupid....a person who genuinely want to run this business...can't do and had to find a surrogate code or get his incompetent or non participative member involved just for name sake...what an idea sir ji....
If this has really gone in .....don't know what to say more

Not allowing RIAs an opportunity to offer execution services may lead to many investors being orphaned, cautioned AMFI. I have never seen AMFI vouching for the same for distributors so far, even the associations feel that investor will become orphan if they won’t get the execution under one roof by RIA. Although I have a doubt on that because the investor who can afford a RIA can very well find the way to execute also.
I think AMFI ,AMC ,Associations and off course SEBI just give a thought that if they are really concern about the investors than can’t this be done just by simply upgrading the existing distributors community by means of some refresher courses, proper certification by making them more accountable and allowing them to offer both the options. Let the investor decide whether he want to pay fees and go for direct or without fees with regular
I mean why all these direct ,regular ,RIA , RIA with direct , RIA – family member –regular , distributor –regular with advice /without advice …..its messed up ..

Are not the direct plan investors orphans, let RIA only advice. Let customers do the rest themselves

Is there any restriction on a Doctor's relative running a medical shop. Can a cloth Marchant not run a tailoring shop.In today's world all industries do forward and backward integration. Why the hell you are after MF Advisers.
Has our brains become so bankrupt as not to come out with a positive solution to 'mis-selling'.
All Advisers are not mis-sellers. For God's sake apply your mind to evolve some prudent solution which will save invester but not ruin honest Advisers and ultimately this beutiful industry.

Also AMCs are showing now that they are with RIAs. This is a disguise AMCs always take to be good on both sides but we all know which side they are on. Please do not be fooled by them. It is them who will be benefitted the most because in future they will increase the TER and keep entire TER with themselves. This move is just to wipe us out and make profits at the cost of crores of investors.

SEBI that just because my brother started MF distribution business 3 years ago, I cannot be an RIA.

SEBI proposed regulations suggest that just because my brother started MF distribution business 3 years ago, I cannot be an RIA today. I don't think this will hold in the courts.

The Mutual Fund Industry, other than the Initial period of UTI, is not very very old. The Constitution of India is framed in 1950. Constitution has undergone so many amendments, but the Basic structure are still very much relevant even today. Reason, the hard work put in by the visionaries. The aim was to have a very strong foundation along with stability and acceptability. Team of hard core professional Law Makers, worked for a long long time to have such a frame work written, drafted, redrafted to see that it remains or lasts for a longer duration.
Take the case of Mutual Fund Industry. It was started as a new investment platform, as compared to the Small Savings and Fixed deposit ongoing Investment platforms. More or less around the same time Company law board was abolished and SEBI was formed to Regulate the Capital Market. Government slowly tried to include Mutual Fund Industry also under the ambit of SEBI or SEBI wanted to expand or extend their arm much more.
In that effort, everybody started in a hurry the Regulations on Mutual Fund Industry, without any build of a strong foundation. Amendments were plenty and the flocks attracted towards MF Industry started getting disillusioned with an unsettled industry. The flocks started looking back at the MF investments, on account of Interest rate reductions on fixed Deposits, both companies and Banks. But instead of allowing the Industry to settle more firmly this time, further unwanted Lab Tests are being carried out by different glorified names like "Direct"."RIA", "Advisers" etc. The politicians have tried to divide using the Religion, Region, Language, Cast, and what not. Similar approach is not good for the growth of this industry.

People have to sit together for a trouble free growth, rather than a power-centric approach. What is needed is to allow the growth and develop a comprehensive Road Map to expand this Industry to expand and spread throughout this diverse country. Allow to run it for a slightly longer time without hindrance and let the investors get educated and the distributors(Educated Unemployed population) to stabilise with their Advises and distribution capabilities.
The Institutions, who are having paid employees on their rolls should not be encouraged to totally wipe out the Educated unemployed Needy community from the country's Map altogether.

IF WE OPT FOR PURE ADVISORY WHAT IS THE GUARANTEE THAT WE WE CAN EARN X AMOUNT TO MAINTAIN OUR FAMILY? CAN SEBI RULES CAN PROVIDE THAT ? WE ALL SHOULD THINK THAT WAY.THAT WHAT I FEEL.

Greatest damage being done to the investors today is not by the MF Advisers but the banks and LIC Agents, who do nothing else than fooling the less privileged people by selling them wrong products in the name of investment.
What the called " Reformers" are doing to combat such mass scale fooling.

By the same yardstick that RIAs cannot have distributors in the same family, would SEBI specify that Directors of a company should not be from the same family or related to each other? Why not ? I think SEBI is more interested in restricting the income of market participants rather than regulation. I would like to know from critics of distributors, as to how many of them have their earnings restricted to 1% per annum legally, that too on a pro - rata basis ? Instead of treating investors and distributors as part of the same market, the regulator seems to be driving a deeper wedge between them. Finally, I find the conflict of interest issue impractical, show me a business or profession, where the conflict of interest does not arise. Everyone acts primarily based on his livelihood, not because his customer really deserves the product/ service.

Exactly.....firstly advisory was done by the distributor, they got a regulations, now they are saying do only one business, Absolutely rubbish.

It is against the Fundamental Rights of any entrepreneur.....until I am not doing illegitimate business, nobody in this world can stop me or restrict me.