AMFI suspends 400 ARNs for using names like advisor, wealth managers

AMFI has suspended ARNs of 392 MFDs for not removing terms like adviser, financial adviser, investment adviser and so on from the name of their business.

In a circular issued in 2020, SEBI had directed MFDs not to name their business in a such a manner which can give the wrong impression to clients. Post the SEBI order, AMFI came out with a list of terms which can and cannot be used by MFDs.

The terms which cannot be used were advisors, advisory, consultant, consulting, consultancy, financial solutions, finplan, fin solutions, investment managers, planners, investments, wealth creator, wealth express, etc. You can view the full list here.

Post the release of AMFI's guidelines, MFDs were asked to make necessary changes within a stipulated period of time. The ARNs which failed to comply were suspended by AMFI.

"It has been therefore decided that the AMCs shall stop dealing with / accepting any business from such MFDs w.e.f. July 1, 2021 treating their ARN as INVALID till they complete the name change as required," the MF body said in a release.

Till today, a lot of these ARNs are still suspended. The list includes ARNs with names like Unitis Tower Wealth Advisors, Baltic Consultancy And Services, MM Industrial Leasing And Finance Consultants and Fifth Dimension Consultants which are not in line with AMFI's nomenclature guidelines.

Here are some other names:

You can view the full list of suspended ARNs (as on May 2022) by clicking here.