A few fund houses may delay your commission accrued between October 22 and October 31 due to implementation of all trail model with effect from October 22.
You are likely to get commission accrued between October 1, 2018 and October 21, 2018 by November 10. However, the commission accrued during October 22-31, 2018 is likely to be paid by December 10, 2018.
In fact, a few fund houses have written to distributors about such a delay. In one such communication, a large fund house has said, “Pursuant to the recent SEBI circular dated October 22, 2018, we have adopted full trail model of commission in all schemes with immediate effect. We will run a separate pay out cycle from the transaction period October 1 to October 21 and release the payout as per existing structures to all the distributors by November 10, 2018. For the transaction period October 22 to November 31, we will release the brokerage on December 10, 2018.”
Another fund house said that it would take time to make changes to the existing commission structure.
Last week, SEBI has banned upfront commission in mutual funds and directed fund houses to follow all-trail model to compensate their distributors. The market regulator has clarified that fund houses will have to pay such commissions from scheme and not from AMC book. In addition, SEBI has asked fund houses not to do upfronting of any trail commission.