IFAs protest SEBI’s move on commission disclosure

8 out of 10 people I meet don't know what mutual fund is and how it works. We,IFAs, sincerely work towards educating them about mutual funds and receive a little commission on that. the SEBI move implies that you do all the dog work and donkey work, then we will show them the direct plan only to pass the benefit of the Hard work of IFAs to AMCs. If SEBI wants transparency, why to disclose only distributors commission. It is only half transparency. They should disclose Total Expenses instead of just distributors commission. Shameful to bring up such silly norms.

Just stop giving business to MFs for 1 month & they will themselves understand our value.
Don't just write your reactions just act really & show them. I have stopped selling MFs & actually earned better in various other financial products & services.

We IFA's cannot do anything. If we all are serious, Lets stop the LOGIN till the law is taken back. Extreme Measures are needed.. Lets unite..

It's a surprising move of SEBI to ask for disclose of commission in statement. We must protest this move, in the organised way.

Adviser work hard,he educate,convince, and help investor's investment.all expenses like marketing,office,staff,and others IFA bears his own income.the sebi move for disclossing commission is a wrong move because pay back comm will going to start and this is an illlegal practice.IFA ko bhi jine ka adhikar hai ya nahi.

Why there should be fees to fill the coffers of NISM for exams & CPE charges and AMFI fees every three years? Impact of SEBI charges and RTA expenses on NAV / investment should also be disclosed in account statements. With the advent in technology why investors should bear burden of hard nosed clerks at RTA's?

I don't know how the investors are going to act on this, but SEBI should understand

All of India IFA surrender the certificate of AMFI before PM

The SEBI (hand-in-glove with AMFI) is now openly acting against the distributors' interests. First, the SEBI chief's (and top officials') assets should be investigated and results published if there has been any abnormal growth in the past few years. Their actions certainly seem motivated and we distributors must know the truth / entity behind the motivation for such regressive actions.

Industry bodies should take up the matter with SEBI / FM and Legally
What are the industry bodies doing? The IFA community is suffering because they are not united and do not have a industry body to represent them and unite them.
Industry bodies can also fight court cases on our behalf. Take the example of Cellular Operators Association of India which is fighting court case against the Telecom Authority.
Industry bodies like FIFA should come ahead to have such a legal battle to either stop such a regressive and anti - industry order from being implemented or such a order should be made applicable to all asset classes in investments and insurance alike. And if its made applicable, SEBI should also find out ways and means of increasing the income of IFA's, if at all they want the mutual fund industry to grow substantially in India. It seems either the SEBI officials are ill advised or they are bribed to such an extent that they are hell bent to destroy the IFA and Distributor channel.

No more new IFA will be joining the industry due to
1) Low commissions which are even subject to pass-backs.
2) Fear of client going Direct any time.
3) The Indian mentality is not to provide fees but commissions are OK. IFA will have a hard time making clients cough up subscription or advisory fees even if as low as 2k to 5k per annum.

So is a game in which you collect the clients with all your hard work and investment, train them, educate them, guide them to start a SIP, channelise part of their portfolio into mutual funds etc and after doing all the hard work gift the client to the direct channel.

Yes some big distributors will take solace in the fact that no more distributors will join the industry or marginal distributors will call it a day, but the ultimate beneficiaries will only be big banks which have branches and heads on the ground to sell their products.

It seems such distributors have bribed the SEBI officials big time to come up with such ridiculous orders like commission disclosure and salary disclosure so that they can wipe out low earning non united IFA and also small MF houses by taking away their star fund managers.

I'm also of the view that individual AMC be polled and put their views in public with IFA on the disclosure matter, whether they support it or not.

We have to start giving business only to those AMC who are against such disclosures and support us in our fight.
I guess the bank and NBFC AMC's should be given less business and more business should flow to standalone mutual fund AMC like DSPBR and Franklin Templeton and others. Atleast they value the distributor channel and will support us in our fight.

1) SEBI's intention is to make investor more aware about direct plan by disclosing commission on A/C Statement through IFA .
2) SEBI plan could be to withdraw ARN business model(so called distribution) gradually to shift on Advisory model (charging fees from advisor)

1964 mutul fund started. 1987 PSUbank allowed to start mf business. 1993 private parties allowed. Now almost 45 AMCs are available. so much water has flown underneath. what is the population?
120crore plus? what is the percentage of people invested in MFs. why so less in the business? what effort made by so called sincere trustworthy people has done other than hefty commission earning.
who cannot punch on computer? look at, are they educating the investor? R they doing any after sale service? PSU banks employees having data base and they are instigated to go for earning. No PSU bank is having a consulting desk to educate the investor_IN and OUT of MF schemes. who is the most Mis- selling group. the poor guys comes to the bank and pushed application and deceive totally. All the way the guys, the brick and mortar of MF industry and still building on and they are the worst people to SEBI and AMFI. the IFAs, their money , time, and the energy put to create the present status MF industry is forgetting the people who has been putting their all out effort to earn their livelihood and build MF industry and also to an extend fulfilling the aspiration the rural and ignorant lot
??. So called direct system, what is the percentage of the population come in by knowingly, by mistake and shifting from IFAs. SHNI/HNI/CORPORATES ARE HAVING THEIR OWN IN HOUSE knowledge team. SEBI need not to educate and they will not allow and AMFI need not do the chamchagiri they don't need it.. IFAs are unorganized one and free to impose any rule on. it is very pathetic. look at the growth of the industry and who brings in then why punish them?? some ethics should be there.

Make it a fair play... There are many other ways in which an investors interest can be safeguarded....Disclosing the income will not exactly serve the purpose .

I come from a small town, Bhiwani. Haryana. Awareness/Participation in MF is very Low here, people generally buy Insurance policies for investment, i have to educate to almost every New Client. Its really strange, what AMCs want to achieve by disclosing my Commission in the statement of people who doesn't know the spelling of Mutual Funds. This will simply create an unwanted situation. No AMC can sell MF with Direct Plans, which they actual want to by making this move of disclosure of our Commission, in current scenario, till they eduacate people in small cities. Well, y only the Commission, Pls reflect the salary n incentive of Fund Managers n all details expenditure in Direct and Indirect Plans.
My suggestion Stop recruiting new IFAs and stop renewal of ARN, if at all u want to abolish ........ Y playing with valuable years of people's Life.

Friends, I am ready to file a case before court / tribunal of appropriate jurisdiction. But for that, I need your courage and support. Please let me know whether we should challenge sebi order. we are in great disparity with insurance business. possible no other profession requires one to disclose his earning for every transaction.

Why is SEBI (a Government body) only after making the mutual fund industry transparent? Why is the same regulation not introduced for PMS, Merchant bankers, Book running lead managers, syndicate members, etc? Also why are the other Government departments not implementing such regulations? Even in the Public Distribution System for food grains and other essential commodities, the Food and Civil Supplies Ministry as well the Agriculture ministry have not made such EXTRA TRANSPARENT policy regulations. For the most essential consumption item like milk, the consumer does not know as to what is the margin / earning of the Milk bottling factory, the stockist, the wholesaler nor the retailer. Then why is SEBI going overboard and over regulating the mutual fund industry? WE NEED THE ANSWER.

Dear regulator, Is the same are on the view of transparency or a indirect way to promote DIRECT mode at the cost of persistent labour of distributor?
Regulator motive should to empower Clients, manufacturer, n Distributor rather than creating confussion?

IFA should first protest Agràinst yearly declaration which they sign in which it is written that they have disclosed commission including trail commission to the investor else SEBI may say when you all yourself is providing the declaration that commission is disclosed by you to investors then why all of you are worried for this move by SEBI

Like to post in column unexpected slap to IFA category. I feel that in our size of country with so many business growing on consultative principle there is lot of need of IFAs. Waht happened to Direct nothing much. IFAs are still having major share.
I lked IFAs of Varanashi to visit Modis office and submit memorandum and in return assurance for meet with minister of satate Finance.
We should in advance increase contact with investors and take them into confidence before issue snowballed.

IFA FORUM (NORTH) From Uttarakhand State and some part of Uttar Pradesh ( Mapping to DehraDun) not participating in the bussiness from 01.04.2016 to 08.04.2016. and not entertaining any person from any AMC, Against the decision taken by SEBI regarding the Brokerage disclosure.

Wonder how many of these regulators who frame this guidelines would have told their family how much is their salary .Lets transparency start from them first.

Friends I am emailing to the Finance Minister & MOS Finance Mr Jayant Sinha on aregular basis. Their email id is available on the internet as well as BJP website. Please all of you write to them, flood their mailbox! Bureaucrats at SEBI are blindly aping USA model where MF Corpus is equal to American GDP! These bureaucrats will finish the whole MF industry! Once we are wiped out, then if the rules are changed later, what good will it do? We must stop these bureaucrats from doing this. Does a Car dealer declare that he has earned 1 lakh commission for the car he has sold to you? Does a retailer declare that he has earned 25 rupees as commission on the bottle of shampoo he has sold to you? What is being done is shameful & unprecendented. These bureaucrats must be stopped. Please rather than venting on this message board, vent on the email id's of senior BJP functionaries.

it is totaly wrong .

is there any product or services which comes disclosing the manu cost or sharing profit what they are earning? is there any hotels or service industries where they share all the cost and profit, does any fmcg product shows any profit or manufacturing cost? no then why only IFA community targetted? is there any provision how much time , energy we dedicate for getting new investors, that also should be disclosed , how come only commission when our cost (time, money & energy) we devote,ifa never canvas for short term business , penetrating untapped markets, new clients etc...

SEBI digging grave of IFAs