‘Fund houses should be allowed to pay upfront commission of Rs.1000 to distributors’

Either stop the entire commission or reinstate the position as of 2014.......Yeh kya bhik de raha hai !

Like every job all are working for remuneration/ commission.Though meet a person on first time, IFA's have to sacrifice such travel expense. So, SEBI should come with a good clarity in this regard.

Mazi jab NSW duboye use Kaunsa bachaye

Where I am working, this is town place and rural areas, first go to in remote place and convince to client then secound time take business, daily around 80 to 100 KM ride.
So understand it

My friend taken ARN No recently....opportunity in this field. So how these jobless segment meet their both ends further......Insufficient Infrastructure, It's to spend more time on travelling to meet person on remote areas and to convince more than twice. So riding 40-50 kms. So incurring all such expenses. How then SEBI can stop the Upfront Commisiion and only Trail Mode!....Eventually everyone working for commission. Will this have serve only.......

What is the logic behind ban on upfront commission who will pay for customer acquisition???it take miles to acquire new clients .any way commission paid is of AMC duty and fund performance matter the most ..why there is higher commission for selling the insurance

It is very painful for mutual fund distributor community we have to look other businesses like insurance, loan.
Mutual fund business not have a good earning in Short term like insurance and also have regulator uncertainty risk, investor redemption pressure .
We are working to educate investor long term investor new online platform are not educated investor where he invest only they sell Mutual Fund

SEBI should come to the real level. Cost curtailment is good. But not at the cost of DISTRIBUTORS who increase the % of Investment in Indian Mutual Funds. And acquiring a business( small to big) needs expenses. Accept the reality.

Regarding GST, there is no role of MOF as the GST act specifically says, it has to be borne by the service receiver. It is the decision of SEBI while fixing the TER, that it includes GST and GST cannot be passed on to Investor. If SEBI permits, GST can be passed on to Investors. As the commission rates are drastically cut, now SEBI can review its earlier decision.

Amfi has made recommendation that insurance agents should also be allowed to sell mf products.
Many agents are just SSC passed.
80 percent of agents are part time agents.
Mf selling is not a vegetable selling job.
Part time agents can't provide better service to clients. Also there will be huge miss selling.
So in my view , simply allowing insurance agents to sell mf products will be a wrong move.
Those who desires to become mf agent
Must go through current procedure.

Amfi has made recommendation that insurance agents should also be allowed to sell mf products.
Many agents are just SSC passed.
80 percent of agents are part time agents.
Mf selling is not a vegetable selling job.
Part time agents can't provide better service to clients. Also there will be huge miss selling.
So in my view , simply allowing insurance agents to sell mf products will be a wrong move.
Those who desires to become mf agent
Must go through current procedure.

Why SEBI hitting every time to reduce & stop upfront trail commissions for IFA every time they r trying to snatch money from the pocket of IFA. Are only IFA responsible for miss selling the MF products not bank not big corporate institutions. Now they stop paying trail on non-kyc customer whose money parked in AMCs if they r not providing or cooperating even contacting them is it our fault. Specially to collect the docs we have to travelled twice and then submitted it in CAMS or KARVY who bears petrol expances as neither AMC nor customer gives to bear it. To whom blame

SEBI view is correct in terms of unnecessary redemption will stop. But what about the distributors ? It will only downsize the number of distributors. If distributors will not get monetary benefit they will not remain in this industry. The upfront commission distributors get is very less compared to insurance agents. AMFI proves to be a non-important body which has no worth of its existence. As it has also requested to allow insurance agents to sell mutual funds. Then why this farce of conducting NISM exam is going on. Next step should be to dissolve AMFI and a single IRDA exam should allow any individual to sell insurance as well as mutual fund. Isn't it ? On the other hand why not stop the upfront commission paid to insurance agents ?

Why Sebi and Amfi are trying to reduce these charges(TER), some of banks and big financial institutions are making wrong commitments with customers that's why you are giving pain to individual distributors. Every authority is sitting for welfare of customers only but who will think about Distributors(Even Amfi is not thinking). The one who was planning to come in this sector to start his venture and now you are making them disabled.

A distributor work hard to generate the business, he meets number of times with single customer then he gets business.

You people are there to make business easy. But you are only doing better for customer perspective not for distributor. You are sitting in Ac rooms and taking all government facilities and deciding future of IFA's, which is dark.

If you are doing everything then decide also that AMC should take this hit by it's part not from distributor's part. Who is giving them business, they are also ignoring to distributors.

Why you are deciding only to reduce commissions of IFA's, plz do aware to IRDA for Lic to reduce commissions from 25-35% to 2-3%, then you will realise that how tough is to take business from clients when LIC will face same business issue.

If Govt. Organisation is doing this thing, then you are ok, because government is getting money from that whether there is no chance to stop and redemption in short term. In mutual fund, customer can redemption his money any time then here you are planning to reduce commissions (which is less then 1%)of IFA and also you are removing upfront commission for new clients.

Plz re-think, otherwise lots of distributors will be work-less, If there is no money in this business. The one who has small AUM, he will be not able to continue then How india will increase mutual fund corpus in compare to USA and other countries.

Action speaks louder than words. What SEBI is doing now ..will pay later. If you remember the history of TITANIC, why it sunk? The root cause was a RIVET..a small nail nor major part of machine. If SEBI, AMFI, & AMC ignoring IFAs contribution ..they will soon realize that they did a mistake. If these organization didn't learnt from HISTORY THEN HISTORY WILL REPEAT ITSELF.

https://wp.me/p8epq3-y

Please go through the blog , what is issue with an IFA after cut in TER and banning upfront commission.

removing upfront is very negative effect to the distributors because i myself was trying to get bussines from many customer after doing all expences like petrol and amfi fees for convinceing one customer it will get many years some time and after getting bussiness it s need to retain them and support them in bad times like me many distributors are fully upset and they will try to shift focus from here to other bussiness sebi should consider this kind of situtations and think from distributors point of view and i am new to this field how can i sustain for future and many amc meetings it was discussed that new advicers never enter into this bussiness if same situtation continues

.....Then IFA's have to sacrifice themself all such expenses on meeting new person who will turn a client through regular follow up after detailed education and then to reach a point of convincing. So, AMFI and SEBI should rethink and make sense how it burden the after affects on Trail mode only.
Unless, IFA's have to run there on Free Service only!

Changes are good. But Ban on upfront will certainly disrupt Distributors Business, So who will feed them!
Such a move from AMFI should have avoided.
Hence, SEBI should have listen to the concerns of IFA's, Unless it brings unhealthy to the Mutual Fund Industry as a whole.

It is sad that SEBI is taking such negative decisions like extension of city limit now banning upfront. They are killing the hen that lays the golden egg. They all earn big fat salaries and IFAs slog like donkeys to Earn it. No travels no income security, no life security its like unskilled workers. Regarding GST on insurance commission, MF commission it is ridiculous that the agent or IFA who provide service is charged this tax. High time the authorities decide.

Besides knowing the real ground level facts, regulators try to regulate the market. This is the basic problem. Only stringent laws can't drive the market. Finally fate of Mutual fund industry shall be same like capital market, which is still strange for more than 90% of population.

The regulators consists of amc top officials and thats why either the IFA or the client gets effected.. each and every move is distructive to the IFAs.. they should understand that becz of us they r getting and doing business.. and its high time the IFAs must form a regulatory body for IFAs and start a nation wide protest and campaign and make the regulators understand our stand or else we will have to face such threats and face such ugly consequences again and again.. I FAIL TO UNSERSTAND THAT WHEN DIRECT PLAN IS ALREADY THERE THEN WHAT IS THE NEED TO REDUCE THE TER OR UPDRONT COMMISSION. Even if UPfront commissions are to be removed ATLEAST REWARD THE HARD WORKING IFAS WITH A HIGHER PERCENTAGE OF TRAIL LIKE 1.5% for first year, 2% for 2nd & 3rdyear, and 2.5 for the period beyond 3 years.

A ‘PIL’ MUST BE FILED AGAINST ALL THE ORDERS OF AMFI/SEBI/AMC AND ALL SUCH BODIES WHO HAVE INTRODUCED SUCH ABSURD AMENDMENTS IN THE MF INDUSTRY PERTAINING TO T.E.R. , UPFRONT AND ALIKE..

Ban on Upfront and Trail Mode only,......Which leads to Miss Selling and thus increase Unfair Business Practices and Un Ethical to the Society! Changes are Acceptable to an extent....Then how the DIRECT PLANS being advertised on medias these much popular and Cut on TER? It's just against the Conflict of Interest and nailing the Small Distributors, So what is the intention!
Though IFA's were the key man in building Trust of New Customers on Utmost good faith, who mostly run with inadequate infrastructure. Making regular follow up on acquisition of New Clients & Serving both Financial and Non Financial Transactions, while riding to clients location and then to reach at Point of Service at CAMS / KARVY destinations, incurring petrol expenses.
So, my request to the Regulator & AMFI, they should forecast the changes.Unless it will disrupt the Industry, henceforth on such a ground rules...conduct may be violated!

AMFI SHOULD TAKE A STAND IN FAVOUR OF SMALL IFA LIKE ME TO START UPFRONT COMMISSION AGAIN AND MISLEADING ADVERTISEMENT IN MEDIAS FOR DIRECT PLAN