IFA association to flag commission disclosure issue with AMCs on April 21

It is great initiative for all IFA. Let's unite for our rights

I strongly believe that this circular by SEBI will again bring back pass back culture in the industry.

It is a great initiative by AMDA.We have to find out way to counter sebi dictat

SEBI want to kill the IFA with suggestion of AMCs, great job by AMDA,Allahabad financial advidor association with u, it's struggle for existence of an IFA. If we also have a SRO then SEBI did not come like this cercular intensionally.

WHAT HAPPENS EMPLOYEE PF FUND.WE MUST STRUGGLE AGAINST THIS ISSUE

It's like a ' checkmate ' scenario created by SEBI -- firstly they issued circular for us to stop pass back or client rebating , and then they issued circular which will force the clients to ask for rebate or pass back ! Consequently , due to this regulation , a free bypass is given to the ' Direct' case

its great job...Lets unite and start Dharna in front of SEBI chief Residence and Finance Minister and AMFI Chief too.Because I think some AMFI, SEBI and AMCs officials are together and want to destroy IFA.

We must unite on a pan India basis and try to held a meeting between Distributors AMC SEBI as well as Finance Ministry.

It's good to untie all ifa together and boycot amc persons and funds

Salute to North India based All India Mutual Fund Distribution Association (AMDA)

SEBI should do like what is happning in the Insurance sector and the sector is growing faster and goood for the statups.

Very Good initiative all of us.

Very good step , we all are with you . This is the need of hour . .. . Nobody is with IFA . Every rule is against IFA . . . be united and oppose this rule .

MY FULL SUPPORT TO DISTRIBUTOR COMMUNITY ON PAN INDIA BASIS AGAINST THE COMMISSION DISCLOSURE

AMC's say that they are not responsible for the disclosure norms. But then why did they not oppose this move by SEBI? Had they put up a united front against SEBI in the first place, then SEBI would have been forced to reconsider. But I guess every AMC has skeletons in it's cupboard. It is a trade-off between both. AMC's keep quiet and SEBI looks the other way. How can the AMC's be so short-sighted? On the one hand they say their distribution and penetration will suffer but on the other hand they do not do anything about it. Seems very fishy. Either they are lying or they don't have the guts to talk to act. If the CEO's of all AMC's seek a joint meeting with SEBI to vociferously fight for our existence, I am confident that SEBI will be forced to reconsider. But we all know very well ... they (AMC's) fight amongst themselves like monkeys. So the cat (SEBI) easily manipulates them.

It is good move by IFA community
It should reach all the IFA s in india
Every one shuld paryicipate in this area

Commission disclosure in e-CAS is basically being targetted to MF advisors only,and it reflects some mental unfitness of SEBI or some personal grudge with this faternity.Rather if Government is willing to do so they should implement this in all Financial Products that are available in the Market starting Revenue earned by Banks on Fixed Deposits,Recurring Deposits,Loan disbursement,Commision disclosure of Life Insurance products,General Insurance and Mediclaim products.Brokerage disclosure on monthly basis of D-Mat and Trading accounts operated,Commission given by Govt to Bank on NPS,Atal Pension Yojana,Suraksha Yojana and all,so that it brings pure transparency and uniformity.

If it is apply on IFA then it should apply on banks insurance companies and dma also

Great initiative.. Open discussions always ends with something conclusive.. All the best

Very good initiative ....be united

Dear Organiser, it is really a good move. Let us know where is this event taking place. We would like to join and show our solidarity for the cause that you have initiated.

Dear Sir

It is to bring to your notice about ridiculous, maligned and one sided circular being issued by market regulator SEBI to disclose mutual fund distributor’s commission in client statements going forward.

Currently, mutual fund distributors are already giving an annual disclosure to AMFI which states that we are disclosing commissions to investors.

Despite AMFI’s (industry and AMC body) plea to not go ahead with commission disclosure rule in account statements, SEBI has instructed AMCs to disclose commissions in half-yearly account statements.

The following points have come up for notice and review after this circular being passed:

1) Has SEBI received complaints from customers in regard of non-disclosure of commissions by distributors or of mis-selling of products? If not, why the need for senseless circulars? And if yes, then why not punish the culprits rather than destroy the whole IFA community. Are these complaints largely directed against a set of distributors like banks whose all employees are given targets to sell without having any knowledge or formal training.

2) Giving too much information to investors will only confuse them and resist them to take up services of MF distributors wherein they are guided and educated by our community to invest in mutual funds, provide consultancy services of picking up right funds depending on clients investment portfolio, past experience, income profile, life stage, risk profile, investment horizon, doing portfolio review and rebalancing, guiding the client in difficult times etc. Does SEBI think that such services are free in nature and IFA as a community should not be there in the first place? Let them reply in plain terms if distributors are required or not in the industry.

3) The move will be inducing pass back culture which only established distributors and big banks can afford.

4) No more new distributors to join the industry. What happened to the idea of Skill India? What happened to idea of self sustainable employment generation for educated youth in India? Are we happy with less than 10000 active distributors in a country of more than 125 crore people? How does SEBI encourage new and professionally educated persons to join the industry?

5) Why doesn’t SEBI make it mandatory to disclose commissions across products like structured products, PMS (upto 4-6%), private equity (up to 4-6%), insurance plans (up to 50%) and NCDs (up to 6%) to disclose their commissions? Only mutual funds have been wealth creators among these ridiculously expensive products. All other products have proven to be wealth destructors. Why the regulators are biased against the Mutual Funds distributors only. Also, all industry depends on commissions to selling agents, even a bottle of shampoo sold in India, commissions are paid to distributors and retailers. Do they disclose their commissions in the bill provided to clients. Then why such disclosure on mutual fund commissions? Smells of rat.


6) There is already a provision of Direct Mutual Funds Plans in all categories for educated and well heeled investors who have high financial literacy and do not wish to take services of a distributor. Also, distributor’s income and commissions are capped through various provisions including maximum expense ratio of fund, capping on upfront commission etc. Then what is the purpose of such a disclosure to investors who have been educated and served over the years by distributors. Does the regulator considers distributors to be only taking up the service of educating and bringing new clients to the industry only to be grabbed up by direct plans lure in future. How does the regulator ensure continued income to distributors for their efforts to educate and bring the clients to the mutual fund industry?

7) The angle of corruption in SEBI board and officials is to be also checked. Its highly likely that the SEBI board, officials and chairman are bribed by big banks and AMC’s who want to get rid of the distributors which are their direct competition. That way they will start enjoying monopoly in mutual fund distribution in India. All at the expense of the investors and IFA distributor community. Assets and liabilities of all SEBI officials, board members and chairman should be scrutinized by IB and concerned authorities.

SEBI as an industry regulator is acting with malaise and partiality against the distributor community on the behest of the large corporate distributors and banks who have bribed most of the SEBI board officials to come up with new and ridiculous methods to discourage and destroy the IFA channel in India.

We request you sir to look into the issue seriously and have all angles of SEBI circular being checked. We demand that this SEBI circular on commission disclosure be rolled back asap and no one should be allowed to destroy a budding industry and take away hard earned income of hard working people of India and also not to create disruptions in the market place in the name of investor protection. Checks and controls should be put in place so that no one is intentionally benefitted by regulator acting with malaise.


I have written the above letter to the Prime Minister and President of India online grievance mechanism. All IFA can copy / change language as they deem fit and proper and write to the PM and President.
10 mins task.
Pls do not hesitate.
Let 1000 complaints reach the office of the PM and President and they force SEBI to withdraw this circular.
Websites are as below. Convert to PDF online and then attach as PDF online.
pgportal.gov.in- PM office portal
helpline.rb.nic.in - presidents office helpline

Usually AMC officials say IFAs and AMCs are in the same boat. They feel so called hurt by this move of the SEBI. then why not they come aloud along with AFAs against SEBI.

Good news all IFA community HALLA BOL

dear friends.i have different opinion regarding disclosure norms.1.amc"s is represented by amfi to sebi when the disclosure norms issue came to amfi why they have not opposed ?2.big amcs figure says that 33 % is converted into direct clients and slowly it can go to 50% .3.amcs want this battle should be flared in media and clients should know the difference of going direct and through ifa.4. the difference in ter has widen recently by amc so that the differance will be more in future .5 in direct plan service tax is borne by amc where in regular by ifa. 6.the main culprit are the big amcs who want to show big profit to there parent co. so friends we have to see how many new clients are in direct plan 90% are our clients converted by amc /registrar office. these are big issues ..........