Since SEBI has asked fund houses to pay withheld commission to distributors within three months starting from February 21, 2019, AMCs can disburse your withheld commission till May 21, 2019. AMCs have withheld commission including upfront commission for sales recorded before October 22, 2018 due to claw back, ARN renewal pending and so on.
SEBI has said, “Regarding payment of withheld commission, including upfront commission for sales pertaining to the period prior to October 22, 2018, the request of AMFI is acceded to. AMCs may be advised by AMFI to make all the withheld payments within a period of 3 months from the date of this letter, subject to fulfilment of all the requirements specified.”
A CEO of a private fund house requesting anonymity said that SEBI has clarified that AMCs cannot pay withheld commission after May 21, 2019. Hence, distributors have two months to ensure that they claim their money back.
AMCs have withheld commission due to a number of reasons such as failed transaction, incomplete KYC and so on.
Here is how you can ensure that you get trail commission on time.
- Check transaction status on R&T website 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 you update KYC of all your clients. You can visit R&T website to check the status of KYC of your clients. In fact, R&T agents have facilitated a quick view of the list of clients whose KYC is not updated as on date.
- Don’t forget to submit your self declaration on time. You need to fill the prescribed form available with AMFI and send it to them through the point of sales office of CAMS
- Renew ARN before it gets expired. You can attend CPE two years prior to its expiry. 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. Ensure that your ARN is KYD compliant.
- Ensure that your commission must exceed minimum threshold amount. Every AMC has a minimum threshold amount. AMCs would not disburse brokerage if the accumulated brokerage is less than the threshold amount.
