AMFI issues SOP to deal with transmission of units on death MF investors

AMFI has issued common standard operating procedure (SOP) for AMCs, RTAs and RIAs to streamline the process of transmission of units on death of MF investors.

With effect from January 1, when a nominee reaches out a mutual fund company or a registrar to report the demise of an investor, it will get updated across all fund houses. There will be no need to reach out to another RTA or AMCs to update the demise of an investor.

Earlier, SEBI asked AMFI to issue SOP to introduce a centralized system to streamline the transmission of units on death of MF investors.

Let’s look at these steps to know more:

1. A nominee/joint holder/legal representative intimates an AMC/RTA by sharing death certificate and PAN
2. SEBI Registered Intermediary (SRI) like AMC or RTA will validate the documents and upload in KRA system. Once the verification is done, the intermediary will have to block all debit transaction like SIP in the account or folio of the deceased investors
3. The above task has to be done in T-Day if such an intimation received before 3 pm. If it received post 3 pm, the verification and uploading can be done in T+1 day (working days)
4. The respective SRI will have to intimate all other AMCs and RTAs to lock debit transactions
5. Subsequently, all respective SRIs will have to communicate transmission process with nominee/joint holder/legal representative

Also, intermediary has to keep the record of relationship of an applicant like nominee/joint holder/legal representative with the deceased along with his contact details.

If death certificate is not received or cannot be verified, the intermediary will have to submit a KYC modification request in the KRA system that ‘information on death of investor received, confirmation awaited’.

You can read the complete SOP by clicking here.