North India based All India Mutual Fund Distribution Association (AMDA) has organized a distributor-AMC meet called ‘AMDA Conclave for Mutual Fund Distributors’ to discuss the commission disclosure issue in Delhi on Thursday.
The association has sent invitations to all AMCs to participate in this conclave. In an email sent to AMCs, the association has said, “In light of the recent SEBI circular there has been an atmosphere of widespread mistrust among the stakeholders of MF industry. This conclave has been organized to initiate a meaningful dialogue among the distributors and AMCs. This would be first of its kind event organized by distributors on such a large scale.”
Sharing the rationale behind organizing this meeting, AMDA member Pallav Agarwal said, “The pace of growth of the MF industry has slowed down due to the recent disruptions. In fact, many IFA associations have observed ‘no login day’ and boycotted meeting with AMC officials which won’t help. This has to be stopped. We all need to have a meaningful dialogue on this issue.”
Pallav said that the association is expecting all top AMCs to participate in this conclave. He said that over 300 IFAs will attend this conclave on Thursday.
A few weeks back, AMDA had shot off an email to the chief executive officers of all fund houses asking to clarify their stance on this issue.
Ever since the market regulator instructed AMCs to disclose commissions of distributors in the account statement from October, many distributors have vehemently opposed this move as they believe that this rule will be regressive and induce pass back practice by investors.
Some distributor associations observed ‘no login day’ on April 4 i.e. not accepting any investment requests. Also, a few IFA associations submitted their resentment letters to the Union Minister Mahesh Sharma requesting his intervention in this matter.
Recently, responding to a question posed by an IFA on Twitter, Jayant Sinha, Minister of State for Finance replied that he is in talks with all stakeholders and will be happy to meet industry delegation to discuss this issue.
