With the new RIA regulations come into force from October 1, 2020, MFDs using nomenclature like independent financial adviser, IFA, wealth adviser or any other similar name like independent financial intermediary will have to incorporate changes to their ARN by September 30, 2020 or their company name by December 31, 2020, said SEBI.
In a communication sent to AMFI, SEBI said that while MFDs using IFA/adviser nomenclature can incorporate changes to their ARN by September 30, 2020, MFDs using IFA/adviser nomenclature in their company name will have to submit their application for name change to the registrar of the company (ROC) and furnish documentary evidence before CAMS latest by October 15, 2020. However, such MFDs can incorporate changes to their entity name by December 31, 2020, clarified SEBI.
Here are other clarification for MFDs:
- MFDs can no longer use nomenclature like IFA, wealth adviser or any other similar name like independent financial intermediary without checking with SEBI
- MFDs entity name should not reflect or create an impression that you perform a role of IFA/adviser/wealth manager. Simply put, you will have clearly mention that you are acting as a MFD and dealing with distribution of mutual funds
- MFD’s name and tagline should be placed together in a clear and legible font size; this has to be followed in all forms of communication i.e. website, mobile app, business card and so on
Action needed from your end
- MFDs using names like independent financial adviser or IFA adviser/ advisor/ financial adviser/ investment adviser/ wealth adviser/ wealth manager/ wealth managers etc. in sole proprietorship firm/ partnership firm/ HUF will have to update changes urgently to their ARN by September 30
- MFDs using such nomenclatures in their entity name will have to submit the name change application to the ROC by October 15, 2020
- Submit documentary evidence to CAMS with a covering letter. Click here to see the format
- Complete the change of registered name by December 31, 2020 by incorporating changes to PAN and updating name in AMFI records. You will have to submit ROC certificate and PAN card with the new name to AMFI
Procedure to incorporate changes to ARN
AMFI has prescribed a standard application form for requesting a name change. You can download it by clicking here.
Such an application has to be supported by PAN and ROC certificate. You can submit self-attested photocopy of updated PAN and ROC certificate along with the handwritten request.
You will have to submit all these documents at CAMS point of sales through post or physically.
