AMCs will forfeit the commissions permanently if you are not able to furnish EUIN to fund houses within 90 days from June 01.
Quoting employee unique employee identification number (EUIN) will become mandatory from June 01 2013 on all advisory based transactions. So if you still haven’t got your or your employee’s EUIN you need to rush to AMFI unit of CAMS because AMCs will withhold commissions and transaction charges on applications where EUIN has not been mentioned.
You are required to mention your EUIN, in addition to your main ARN, on advisory based applications if you operate individually. If the transaction is ‘execution only’ transaction you can leave the EUIN blank. However, you need to ensure that you have taken the signatures on a declaration printed in application forms. If there are joint holders then you need to take all the joint holders signatures. If you don’t furnish the EUIN to fund houses within 90 days or if you fail to take signature of the investor/s, AMCs can forfeit the commissions permanently on those particular transactions.
If the main ARN is mentioned correctly and EUIN is invalid or incorrect then the commissions and transaction charges on such sales are suspended till the distributor furnishes the correct EUIN.
Quoting EUIN is mandatory for transactions like new purchase, additional purchase, fresh SIP, switch, fresh STP, fresh (Dividend Transfer Plan) DTP. For transactions like ongoing SIP, ongoing STP, ongoing DTP, dividend reinvestment, bonus units redemption, SWP, mentioning EUIN is not required.
If your employee quits your organization, you need to inform AMFI unit of CAMS about the same. Similarly, you need to inform AMFI if anyone joins the team.
For transactions routed via mobile transactions/SMS, stock exchange platform, ATMs, call center, mentioning EUIN will be mandatory from August 01, 2013.
AMFI ARN committee can also ask AMFI unit of CAMS to suspend the ARN of any salesperson if a case of mis-selling is proved.
