Distributors are not supposed to approach individual AMCs, RTAs for any modification in their employee unique identity number (EUIN) data from January.
AMFI-unit of CAMS will create a centralized comprehensive database of distributors that will comprise the list of employee unique identity number (EUIN) submitted by various distributors.
SEBI, in its circular in September had directed mutual fund houses to capture the unique identity number (EUIN) of the employee/relationship manager/sales person of the distributor who are interacting with investors for selling mutual fund products.
The AMFI-unit of CAMS will be sharing the list of EUIN with all RTAs. It will also update all RTAs on new EUIN generated and deletions/modifications of existing EUIN. It will also frame and implement procedure and business rules for EUIN. AMCs will not accept any modification related to corporate ARN, name of the corporate, employee name, EUIN, from any distributor from January 2013. Distributors have to approach the AMFI-unit of CAMS for any changes.
AMCs shall highlight in the Key Information Memorandum the importance of providing EUIN, particularly in advisory transactions, and state that EUIN will help the fund houses to curb mis-selling even if the employee/ relationship manager/sales person/ distributor quits the company.
The fund houses are also supposed to tally EUIN records with transactions and identify inconsistencies, if any, between the numbers of transactions by EUINs vis-à-vis total number of EUIN registered by the ARN holder or the total sales staff of the ARN holder.
AMCS have been advised to put in place necessary systems and processes in order to implement the above system by 15th January, 2013.
