Currently mutual fund distributors have to undergo six hours of offline training to renew their ARN.
National
Institute for Securities Markets (NISM) is planning to provide continuing
professional examination (CPE) for mutual fund distributors through online
mode. The facility is likely to be made available from August end.
The new online training module of CPE is likely to be for a shorter duration of four hours. Distributors can appear for this online CPE training at any of the NSE, BSE or NISM centers. This training is likely to be available in 150 centers. The class room CPE trainings will also be continued simultaneously.
The move has come as a big relief for mutual fund distributors. “It will be a win-win situation for IFAs, AMCs and NISM. It will help distributors in smaller towns. Also, the cost of conducting such training vis-à-vis offline training will be cheaper,” said Ramesh Bhat of Aniram.
Some say that it can dilute the quality of training. “Insurance trainings happen online. It would be difficult to track if any dummy candidate is appearing for training or exam. You don’t get to learn so much in online training,” said Gajendra Kothari of Etica Wealth Management.
In order to renew the ARN license, distributors have to undergo a mandatory six hours of class room training. Once distributors appear for this training they are issued a certificate. Distributors have to send their certificates to CAMS. The license has a validity of three years.
Currently, the fee for one day CPE training is around Rs. 2,000. Though NISM has not finalized the fee yet, the online training could be cheaper as compared to the costs involved in class room training.
NISM
conducts roughly 500 CPE trainings for mutual fund distributors across India
annually. Distributors have to renew their ARNs six months prior to license
expiry.
