AMFI has asked distributors to submit all pending declaration of self-certifications (DSCs) by July 20 to avoid forfeiture of commission.
This has come after SEBI has asked fund houses to pay withheld commission of distributors until August 20, 2019. This means fund houses cannot pay your withheld commission after the stipulated date. So far, there was no specific time limit for AMCs to pay withheld commission because of non-submission of DSCs.
AMFI has found many instances where distributors have not submitted the annual DSCs of previous financial years starting from FY 2014-15. These distributors will not be able to claim their withheld commission if they fail to submit their pending DSCs before July 20, 2019.
In an email communication sent to distributors, AMFI said, “SEBI had, vide letter dated February 21, 2019, advised that the AMCs should make all the withheld commission payments within a period of 3 months from the date of the said letter. Vide letter dated June 4, 2019, SEBI has extended the time limit for payment of withheld commission for a further period of 3 months. From the above, it follows that commission for past years, withheld on account of non-submission of DSC needs to be paid by 20-Aug-2019, subject to receipt of the pending DSCs, or else the same shall be forfeited. It is observed from our records that you have not yet submitted the annual DSC for the FY - 2014-2015, 2015-2016, 2016-2017, 2017-2018.”
“You are therefore advised to submit the pending DSC(s) urgently, but not later than 20th July 2019 to enable the concerned AMCs release the commission withheld on account of non-submission of DSC for the previous years before the aforesaid deadline set by SEBI. Please note that non-submission of the pending DSCs pertaining to previous years would lead to forfeiture of commission withheld due to non-submission of the DSC(s),” clarified AMFI.
For the FY 2018-19, distributors would require submitting their DSC within three months of the completion of the financial year i.e. 30 June 2019.
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. You can download this form by clicking here.
