Distributors seek extension of EUIN compliance deadline.
Some mutual fund distributors are still waiting to get their employee unique identity number (EUIN) even as the deadline ends on March 31.
Employees of distributors engaged in mutual fund sales are required to obtain NISM certification and register themselves with AMFI and obtain an EUIN. Distributors are supposed to ensure that employees quote the EUIN in the application form, failing which ARN holders do not get any commissions from AMCs. ARN holders are required to intimate AMFI if their sales personnel leave jobs.
“A large section of corporate distributors have received EUINs. Earlier EUIN was not mandatory for IFAs who do not have employees but later it was made mandatory. I think AMFI should extend the deadline,” said a sales head of a public sector fund house.
Sources tell us that AMFI may further extend the deadline of EUIN. “There was a discussion to extend the EUIN deadline in AMFI,” said a person in the know of the development.
SEBI’s intention behind introducing EUIN was to identity mis-selling. AMFI committee may even suspend EUIN of people who are found guilty of mis-selling based on the complaints received from investors.
Registrar CAMS is creating EUINs for distributors. The database of all EUIN holders will he maintained by AMFI-unit of CAMS. EUIN is mandatory to be mentioned in transactions like purchases, switches, registrations of SIP / STP / trigger STP / dividend sweep plans. Only overseas distributors are exempted from getting EUIN.
