By now, you may have updated PAN and KYC of your most of your clients. However, if you want to receive the withheld commission, do not forget to update AMCs on the status of completed KYC folios.
While a few AMCs have communicated this with distributors verbally, a large fund house has written to distributors requesting them to update them on KYC of their clients having pending status.
In one such communication, a large fund house said, “Process for update of PAN and KYC for existing customers has been further simplified. Now for PAN records that are already KRA KYC registered, partners can send update request through any of the following mediums. Partner can send consolidated requests from registered email id with investor name, folio no and investor PAN details. Alternatively, partners can submit signed letter with ARN code and ARN name in the request form.”
The fund house has clarified that distributors will get withheld commission only if they update such a data before 30th of this month. Any update after 30th will be adjusted to subsequent brokerage batch.
A Mumbai distributor requesting anonymity said that it is better to update fund houses on such a status. “Ideally, RTAs should update AMCs with such an information. However, we cannot rely on them considering the tight deadline. Hence, it is better that we should intimate the respective AMCs once they remediate the pending KYC folios,” he said.
Earlier, SEBI has extended the deadline to pay withheld commission to mutual fund distributors till August 20, 2019 subject to fulfilment of all requirements. AMCs withhold commission including upfront commission for a number of reasons such as failed transactions, incomplete KYD, pending KYC, and so on.
