CAMS and KFin Technologies (KFintech) have today launched MFCentral, a platform that integrates services of RTAs under one roof and offers host of digital services.
Let us see what MF Central can do:
Investors
Under the first phase, investors can view their mutual fund holdings across all fund houses. They can also execute most non-financial transactions completely paperless. Currently investors can change or update their address, email id and phone number, consolidate folios, update nominee details, update bank IFSC, make corrections on folios, update minor to major status and declare FATCA to comply with KYC norms.
Investors can also get access to reports on unclaimed dividend and bonus if any. The platform also gives overview of schemes which they have invested in the past even if they have redeemed their money.
Investors can also track status of service request they make.
In future, investors will be able to change primary bank account and add multiple accounts to their mutual fund investment portfolio. Investors will also be able to execute transactions in mutual funds like purchase, redemption and switch.
Also, nominees will be able to transfer MF units i.e. claim investments of deceased investors through a completely paperless process.
MFD/RIAs
There is nothing in store for MFDs and RIAs as of now. However, in subsequent phases, MFDs can do everything that is currently available on RTA website like execution of transaction across fund houses on behalf of clients, download account statement, generate reports like brokerage reconciliation, status of pending transaction, status of KYC and so on.
Another key benefit will be the introduction of standardized application form to execute transaction.
What MF Central can’t do?
Common nomination for investors: Currently, investors make nomination at folio level. Hence, it will not be possible to offer common nomination in the MF industry. However, it will be less cumbersome due to it being a completely paperless process.
Centralized nomination for MFDs: This is also not possible since it happens at AMC level. However, making nomination will become completely paperless for MFDs. Currently, MFDS have to submit a physical nomination form at the fund house level. There is no online system to make nomination against ARN.
Switches between AMCs: MF Regulations do not allow switching of schemes between AMCs. Currently, when a switch happens within schemes of an AMC, it is basically redemption and reinvestment. However, the redemption money does not hit the bank account of customers.
It remains with the AMCs. AMCs are held responsible to honour such a request. If interoperability is allowed, the primary AMC will have no control over source scheme of another AMC, said a senior official of MF Central.
Overall, the platform is conceptualized to go live in three distinct phases, which will be completed by December 2021. The first phase covers non-commercial transactions (service requests of investors), financial portfolio view and consolidated account statement amongst other features. The next two phases will see the launch of financial transactions and integration with ecosystem partners for several value-added services, said the company.
