Putting an end to confusion regarding nomenclature to comply with the SEBI regulations, Nilesh Shah, AMFI Chairman said that AMFI, in consultation with SEBI, has issued an extensive list of nomenclature that can be and cannot be used by MF distributors.
Nilesh was speaking at the webinar organized by the Foundation of Independent Financial Advisor (FIFA) today.
Assume that XYZ is the name of a distribution firm. Here is the list of prefixes and suffixes that can be and cannot be used with the name of the firm.
|
Names that can be used by MFD |
Names that cannot be used by MFD |
|
XYZ Asset |
Advisors |
|
XYZ Asset Distribution Co/LLB |
Advisory Services |
|
XYZ Asset Services |
Capital Advisor |
|
XYZ Capital/Distribution |
Capital Management |
|
XYZ Capital Services |
Consultant/Consulting/Consultancy Services |
|
XYZ Edge Investment/Distribution |
Corporate Advisory |
|
XYZ Enterprises |
Financial Consultancy |
|
XYZ Fin/Finance/Financial |
Financial Consultancy Services |
|
XYZ Financial Distribution |
Financial Consultant |
|
XYZ Financial Services |
Financial Consulting |
|
XYZ Finmart |
Financial Planners/Planning |
|
XYZ Finserv |
Financial Solutions |
|
XYZ Funsmart/Funmart |
Finplan |
|
XYZ Invest/Investment |
Finserv |
|
XYZ Investment services |
Fin Solutions |
|
XYZ Financial Investment |
Fund Advisor |
|
XYZ Investor Services |
Independent Financial Advisor |
|
XYZ Investor Shoppe |
Investment Consulting |
|
XYZ MF Services |
Investment Advisor |
|
XYZ Money |
Investment Consultancy |
|
XYZ Money Services |
Investment Consultancy Services |
|
XYZ Money Mart |
Investment Consultants |
|
XYZ MF Distributor/Distribution |
Investment Managers |
|
XYZ MF Services |
Investment Planners |
|
XYZ Partners |
Investment Solutions |
|
XYZ Prime Investments/Prime Distribution |
Money Manager |
|
XYZ Wealth |
Multi-wealth Investments |
|
XYZ Prime Wealth |
Planners |
|
XYZ Securities |
Solutions |
|
XYZ Securities Distribution |
Wealth Advisors |
|
XYZ Finvest |
Wealth Advisory |
|
XYZ Services |
Wealth Advisory Services |
|
Wealthcare |
|
|
Wealth Chanakya |
|
|
Wealth Consultancy/Consultant/Consulting |
|
|
Wealth Creator |
|
|
Wealth Express |
|
|
Wealth Mall |
|
|
Wealth Management/Manager |
|
|
Wealth Planner |
|
|
Wealth Plus |
|
|
Wealth Services |
|
|
Wealth Solutions |
|
|
Wealth Vision |
|
|
Wealth Yantra |
Explaining the key difference between advisor and distributor, Nilesh said that an advisor is a person who does not get any consideration from the manufacturer (mutual funds). And distributor is the person who gets commission from mutual funds. Hence, using words like advisor and advisory services is now strictly prohibited by SEBI, he added.
Further, Nilesh said that MFDs will have to disclose that they represent mutual fund companies and selling their products at the time of onboarding a client.
