One of our readers wrote to us with this query:
My ARN expired on March 2020 but due to relaxation, it has been extended till March 2022. I would like to renew it now. However, an article appeared on Cafemutual says it can be renewed within three months of expiry. What should I do now?
Chhotalal Kotak
Hi Mr. Kotak,
You can still renew your ARN by clearing NISM Series VA Mutual Fund Distributor Examination from NISM. There is no timeline to renew ARN after the first three months of the expiry date.
However, you will have to forego your trail commission on assets built on previous assets.
From July 1, 2022, AMFI has implemented new ARN renewal norms which says that AMCs will forfeit trail commission of distributors if they do not renew their ARN within in three months of expiry.
However, MFDs can renew their ARN even after 3 months but they are not entitled to claim trail commission on their previous assets.
Since you are renewing your ARN after three months of expiry, you will get trail commission only on business acquired after the renewal date. Trail commission built before the expiry will be forfeited completely. Basically, you will have to start afresh.
We recommend you to approach AMFI to seek relaxation. If your reason is genuine, AMFI may consider some relaxation.
