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MFD associations will have to rename their association if their association’s name contains the word ‘IFA’ or ‘independent financial advisor’.
SEBI chairperson Madhabi Puri Buch said that it has already asked AMCs to convey to MFD associations not to use the word ‘IFA’ in the name of their association. They will have to remove the word ‘IFA’ from the name of their association, said Buch.
Buch said that at the ARIA event held today in Mumbai.
Highlighting a few instances of malpractices by industry players, Puri said:
- A few RIAs have been renting out their licenses which is not allowed
- A direct plan platform has received advertisement income from an AMC which is exactly in line with the commission, i.e. the commission amount is exactly related to the volume of business it generated
Acknowledging the good work of RIAs, Buch said that SEBI wants to create 10 lakh RIAs who work for the welfare of investors.
