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Delaying ARN renewal will cost forfeiture of trail commission earned during the expiry period.
In the latest clarification on renewal of ARNs, AMFI said that if a distributor applies for ARN renewal post the expiry of ARN, the ARN will be renewed from the date of receipt of his application in good order.
This essentially means that if you delay renewing your ARN by say 10 days, your trail commission generated during the 9 days from the expiry will be forfeited. In addition, the validity of ARN will be from date of application in good order to the expiry of CPE certificate.
Remember that business procured during the expired period or invalid ARN period will be shifted to direct plans. This means, SIP business of MFDs will go to direct plan during the expired period.
AMFI said, “If the application for ARN renewal is submitted after the expiry of ARN validity, the same will be renewed from the date of receipt of the ARN renewal application in good order, even though the NISM certificate may have been renewed prior to its expiry.”
AMFI has urged distributors to renew ARN online through AMFI website well in advance, prior to expiry of validity of ARN, to avoid any inconvenience.
The new change will come into effect from October 1, 2022.
In April, AMFI amended the ARN renewal norms in which it clarified that trail commission will be forfeited if distributors do not renew their ARN within three months of expiry.
