Karnataka Association of Mutual Fund Advisors (KAMFA) has urged individual mutual fund distributors to put in place nomination against their ARN.
The request has come after the association has witnessed family members of two deceased MFDs facing difficulties to get trail commission in absence of nomination.
In a letter sent to MFDs, KAMFA President Tejas GV said, “The current pandemic has made life extremely unpredictable. As an MFD, you must complete nomination against your ARN across all fund houses so that your family gets trail commission. Please do this on a priority basis to safeguard your business and family. Besides nomination, it is very important to keep your family informed about your business succession plan. They need to be aware of how to take the business forward in case of any unforeseen events.”
The association said that they are ready to extend helping hand to MFDs to complete the nomination process and also the family members of deceased MFDs to get trail commission. “As an association, we would train and guide family members of an MFD on the best business practices. KAMFA can also assist and facilitate a suitable exit if a nominee does not intend to continue with the mutual fund distribution business,” he added.
