In a bid to attract more distributors, AMFI has extended the fee waiver for new distributors from June 30 to September 2013. The waiver of fee is for both ‘new cadre’ and people who register with AMFI for the first time.
SEBI has allowed postal agents, retired government and semi-government officials (class III and above or equivalent), retired teachers and retired bank officers with a service of at least 10 years to register as new cadre of distributors.
AMFI has added another category of distributors like agents selling insurance, fixed deposits, national savings schemes, PPF, etc. who are registered with any other financial services regulator and business correspondents appointed by banks who can register as new cadre of distributors if they meet certain criteria.
Certification requirement
|
Category of the applicant |
Certification requirement |
|
Individual |
Valid passing certificate of AMFI Mutual Fund (Advisors) Module or 'NISM Series V-A : Mutual Fund Distributors Certification Examination' |
|
Senior Citizen |
Valid Certificate of having attended “NISM Continuing Professional Education for Mutual Fund Distributors” |
|
New cadre of Distributors |
Passing certificate of “NISM-Series-V-B: Mutual Fund Foundation Certification Examination” or Certificate of having attended “one day NISM Mutual Fund Foundation CPE Program, as specified by NISM” |
|
Source : AMFI |
|
“It is a welcome step. The industry should get fresh blood. Many people are showing interest in taking up mutual fund distribution now. We are looking to add around 5000 new distributors this year,” said Himanshu Vyapak, Deputy CEO, Reliance Mutual Fund.
Currently the new cadre of distributors is only allowed to sell FMPs, index funds and diversified equity funds. The industry has been demanding to allow the new cadre of distributors to sell more fund categories like debt accrual funds, MIPs and hybrid funds.
According to fund officials, the industry has been facing operational challenges in getting the new cadre of distributors on board. “The examination centers are limited. It takes around 2 to 3 months to enroll new cadre of distributors,” said a senior official from a private sector fund house.
