Listen to this article
Members of Ernakulum chapter of Kerala Association of Independent Financial Advisors (AIFA) organised a webinar addressed by Chennai MFD K. Ramesh Bhat of Aniram to understand and discuss the revised code of conduct for mutual fund distributors.
Ernakulum Chapter President Philip Cherian shared with Cafemutual the five key takeaways from the session.
- MFDs cannot share data with their group companies for cross-marketing
- An MFD who is an associate or sponsor of an AMC should disclose all material information about such association and the total amount of commission received/receivable while providing suggestions to investors. Philip believes this will foster strong and transparent client relationships
- MFDs should not deal in direct plans. To this Philip explained - at times, investors want to invest in both i.e. direct and regular plans. In such cases, MFDs should make suggestions only for regular plans
- MFDs should use marketing materials provided by AMCs and not design their marketing materials
- MFDs need to mention ‘AMFI registered mutual fund distributor’ on all communications, website, signboard, visiting card, etc.
Over 40 MFDs attended the one-hour session.
Phillip said, “We are happy that AIFA could help MFD members understand the recent revisions and their impact. It has developed a positive outlook and has made our members more amenable to changes.”
