SEBI asks AMCs to be careful in handling clients data

SEBI has asked fund houses through AMFI to exercise caution before sharing clients data with MFDs.

This has come after SEBI found an instance of an AMC sharing statement of account with a distributor. However, the statement of account had details of investments, which were not done through the distributor like investments made through direct plans.

In this regard, AMFI instructed fund houses not to share investment details of investment of clients with MFDs, if it is not routed through the ARN holder.

AMFI issued a new framework for fund houses:

• MFDs should be encouraged to use mail back services provided by RTAs to get such statements
• If it is necessary to share the statement of account to MFDs, AMCs/RTAs should ensure sharing details of transactions, which are done through the ARN holder
• AMCs/RTAs can share such statement only after verification of the MFD