AMFI has modified its due diligence process asking distributors to now give additional details like customer complaints and pending KYC details.
The new due diligence process seeks details on nature of complaints received by distributors over the last three financial years i.e. from FY 2016 to FY 2018. Among the key areas of nature of complaints are non-receipt of statement of accounts, discrepancy in statement of accounts, wrong switch between schemes, unauthorized switch between schemes, deviation from scheme attributes, non-updating of email, mobile no, bank details, non-receipt of redemption proceeds, non-receipt of dividend and mis-selling or wrong scheme sold. Distributors are required to share the status of the resolution i.e. how many complaints have been resolved and pending with AMFI.
Another modification is seeking details of clients who have not completed KYC, non-PAN folios and FATCA non-compliant accounts.
Currently, distributors who have a presence in more than 20 location or AUA of Rs.100 from individual investors or earn commission of Rs.1 crore and above a year or commission of Rs.50 lakh from a single fund house have to do due diligence under AMFI norms.
