MF News IFA association ICAA calls for uniform brokerage calculation across AMCs on old assets

IFA association ICAA calls for uniform brokerage calculation across AMCs on old assets

The association requests AMFI to facilitate group term insurance and group health insurance for IFAs.

Team Cafemutual Oct 19, 2019

Kolkata IFA Association, Independent Consultants & Advisors Association (ICAA) has today requested the new AMFI Chairman Nilesh Shah to ask AMFI members to follow uniform method to calculate trail brokerage on old assets.

In a letter sent the AMFI chairman, ICAA has said that IFAs do not understand how AMCs calculate trail brokerage on old assets as there are different method of calculation across fund houses. Further, they said that there is also no uniformity in clawback calculation on old assets.

Post rationalization in TER, old assets are those that were built before 2015.

Among other key demands were

Action against distributors who lure investors by highlighting past returns on advertisement and communication
Group term insurance and medi claim insurance for IFAs. The association said that let IFAs pay the premium to avail this facility.
Representation of IFAs in AMFI

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15 Comments

Prashant · 4 years ago `

I agree with first point but not completely because it only says distributors to be punished. Well what about banks and direct sellers meaning emoyees of AMCs and what about webaggregators? Why should they be running Scot free on this because they are the ones who only and only missell?

Anup Agarwal · 4 years ago `

Gud step friends. Pl call for a nationwide ifa associations meet to discuss variuos issues related to our industry.

Chandra Kishore Goyal · 4 years ago `

Great step taken by ICAA. We should follow up regularly for our issue. Because of mis selling or wrong facts by bank employees and other organisation, FA has to suffer and loose clients

Rahul · 4 years ago `

Good move. We all must join the movement.

Surajit Das · 4 years ago `

I am a proud member of ICAA. I personally feel this organisation has been trying very actively to solve our problem.

ARN-91276 · 4 years ago `

Why "uniform brokerage calculation across AMCs" on old assets only, not on new assets also?

"Action against distributors who lure investors by highlighting past returns on advertisement and communication". Then on which ground promotions should be done? Will anybody buy any product which performance is not available. Nobody will buy blindly.

This should be applicable for those products only which are recently change their category and composition.

AMITAVA MUKHERJEE · 4 years ago `

I appreciate the initiative of uniform brokerage for old assets to distributors by ICCA and also agreed about the new business brokerage.

Padmakar Sohani · 4 years ago `

Really good suggestion Brokerage on Old Corpus must be as per current Trail brokerage rates

Also I would like to appeal as If any client shift his AUM under new IFA we are not getting brokerage, if we wish to get the same same should be redeem and then fresh purchase request need to submit. I think this is totally wrong on the point of Investor

So Change Of Broker ,atleast after completion of atleast One year new IFA should get Trail Brokerage for the same.

D B DESAI · 4 years ago `

I support the suggestion for GroupTerm Insurance & Mediclaim. Further, there should be only one National Association of IFAs, may be a single Co-ordinating Comittee representing different associations for the time being and slowly but certainly should move towards ultimate unity. It will make a huge difference.

ANGHA · 4 years ago `

Much valid arguments, need immediat implementation.

H S PRAVEEN · 4 years ago `

Good Move..But PLS. Note, Banks are mainly. responsible for Mis-Selling Mutual Funds & Insurance products. etc to public.

Sudhir Kumar Mishra · 4 years ago `

I am agree with the demand. in the beginning the SEBI talked about the old asset continuation for a better return but AMFI's are for churning as it reflects through their trail of old assets.It is in the best interest of investors that old assets should be rewarded not punished.

Gagan Gupta · 4 years ago `

First of all appreciation to the association for the support to IFA community. Can I be the member of such association.(ICAA) If yes send me the details on my email I’d gagan@guptainvestments.com

RINKU DEVI · 4 years ago `

Why "uniform brokerage calculation across AMCs" on old assets only, not on new assets also?
All IFA joined the hand and call for strike regarding the very less Brokerage structure on before 1st april 2019. SEBI and AMFI re think the process for trail model.

Mfaishal · 4 years ago `

Are stop brokerage without KYC or pan is not technically good idea ?
Request IFA association to approach and re discuss about IFA brokerage which at present hold due to non KYC folio and pan ,
request SEBI carry on brokerage on non KYC folio and pan,
Kyc collect from investors at time of redemption, and without KYC stop redemption,

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