A majority of the fund houses are complying with AMFI’s best practices guidelines on the new commission structure. H N Sinor, CEO, AMFI told Cafemutual that 35 fund houses are adhering to the new commission guidelines.
Sinor is of the view that MF industry should move towards all trail model. “The dust is settling down. All major fund houses and those fund houses that had unnecessarily paid higher commissions to distributors have realized that an all trail model is beneficial for AMCs, distributors and investors. Also, this structure ensures that there is a level playing field among AMCs.”
However, a few fund houses have reportedly decided not to adhere to AMFI’s best practices guidelines. These fund houses are Sundaram, JP Morgan, HSBC, Baroda Pioneer, Escort and Sahara. Sinor said that these fund houses are likely to review their commission structure in the coming months.
The review meeting will be held in June. Sinor said that AMFI is likely to put status quo on the commission structure.
