Chandigarh IFA Pankaj Kathuria has written to Cafemutual to find out if SEBI has given another extension to AMCs to pay withheld commission to distributors.
Like Pankaj, most of you must be wondering that since the last date of claiming withheld commission was August 21, 2019, what would happen to your pending commission.
A few days back, SEBI has reportedly asked fund houses to put withheld commission of distributors in an escrow account.
Since this communication does not mention anything about the previous deadlines with respect to payment of pending commission to distributors, the industry experts including AMCs have concluded that there will be no official deadline to claim pending commission.
In fact, a communication from an AMC to a few distributors says that there will be no forfeiture for KYC non-compliance but SEBI has asked trustees to monitor the KYC pendency. The AMC has urged advisors to expedite remediation of pending KYC cases.
Prima facie, you can continue to claim your pending commission subject to fulfilment of all requirements even after the deadline.
Most AMCs withhold commission including upfront commission for a number of reasons such as failed transactions, incomplete KYD, pending KYC, and so on.
