There may have been instances when you did not receive your brokerage. It could be due to a number of reasons such as failed transaction, incomplete KYC and so on. However, this checklist will help you reduce the chances of getting your brokerage stuck.
See if the transaction is successfully completed: In most cases, AMCs withhold commission due to failed transaction. You can see the status of each transaction on website of R&T agents like CAMS, Karvy, Sundaram BNP Fund Services and Franklin Templeton or through mailback services. Follow up with the respective R&T agent if a transaction has failed.
Ensure that your client has updated KYC: Fund houses are unlikely to disburse your trail commission on assets with incomplete KYC. R&T agents such as CAMS and Karvy have shortlisted the status of KYC of your clients based on two key parameters - investor has not completed KYC with any of the KRAs and he has not done any transaction with the fund house subsequent to completion of KYC depending on previous norms.
In fact, R&T agents have facilitated a quick view of the list of clients whose KYC is not updated as on date. You can download this file to see list of clients with incomplete KYC.
Submit your self declaration on time: Every year, distributors are required to submit the annual declaration of self-certification (DSC) for the financial year ending March in line with the code of conduct prescribed by AMFI. You will not get brokerage from July onwards if you do not submit your DSC. All you need to do is fill the prescribed form available with AMFI and send it to them through the point of sales office of CAMS.
Renew your ARN before it expires: You have to undergo mandatory six hours of classroom training, called continuing professional examination (CPE). Once you appear for this refresher course, NISM will issue a certificate stating that you have successfully completed the mandatory training. StreetsAhead, a joint initiative of Cafemutual and Ambition Learning, provides CPE training to mutual fund distributors across 200 locations under Sykes & Ray EduPro.
However, if you did not appear for CPE prior to the expiry, you will have to appear for NISM MF Distributors’ Certification Examination Series-V A. The exam will cost you Rs.1,500. Remember that AMCs will not pay you commission on business procured during non-validity of your ARN (six months after expiry of ARN).
Brokerage must exceed minimum threshold amount: Every AMC has a minimum threshold amount. AMCs would not disburse brokerage if the accumulated brokerage is less than threshold amount. CAMS website shows that L&T MF has set a minimum threshold amount of Rs.250 while such a limit is Rs.500 for ICICI Prudential MF. AMCs accumulate this brokerage until it crosses their threshold limit and pay later.
