AMFI has asked AMCs and mutual fund distributors to update the email ids and mobile numbers of their clients to comply with its code of conduct. The trade body has asked its members and distributors to finish this task by June 1, 2019.
In a recent circular, AMFI said distributors must ensure that the addresses and contact details filled in the MF application form are of the investor and not of any third party. “Distributors should refrain from filling information of their own or of their employees as the investor’s contact details in the application form, even if requested to do so by investors.”
AMFI further said, “It has been brought to AMFI’s attention by one of the RTAs that despite such clear guidelines, several distributors have provided their own email id and mobile numbers instead of their clients’ contact details. This is not only in violation of the AMFI guidelines, but also deprives the clients from receiving important communication sent by the AMCs. Also, the AMCs will not be able to contact the investors directly, in case of any urgent requirements.”
Here are the guidelines to be followed to update email ids and mobile numbers of clients.
For new clients
- AMCs and R&T agents will have to capture the email ids and mobile numbers from KYC data. In case of joint holders, they will have to capture credentials of the primary account holder.
- If such details are missing in KYC, AMCs or KRAs will have to send a letter to such investors requesting them to update their details through KYC change request form
- AMCs and RTAs will have to make continuous efforts to obtain email ids and mobile numbers of such clients
- If AMCs and R&Ts find incorrect email id and phone number of investors, they will have to send a letter to such investors with a request to provide the correct details
- Investors can use the same email id and mobile number for investments made on behalf of family members – spouse, kids and dependent parents.
- Account statements issued to investors without email id and phone number should carry a remark ‘NOT PROVIDED’ explicitly
- AMCs will have to clearly specify in SID, KIM and application form that investors should provide email id and mobile number to prevent fraudulent transactions
For existing customers
- AMCs will have to check if the email id is valid
- Also, check to see that the email ID and phone number of an investor do not match with those of another investor
- If they match, check to see if they belong to family members
- If it is found prima facie that the email id and mobile number in the application form are incorrect, AMCs will have to check from KYC if these match with the primary holder’s details. Else, delete the existing email id
- If the email id and phone number are not available in KYC or application form, AMCs or KRAs will have to send a letter to the investors concerned requesting them to update their details through KYC change request form
- Request such investors and their distributors to update the information
- AMCs will have to send a reminder annually requesting investors to update the email id and phone number
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