MF News Voice of IFAs will be heard, says Jayant Sinha

Voice of IFAs will be heard, says Jayant Sinha

Sinha has reportedly said that suggestions from all stakeholders need to be sought before framing any rules for the MF Industry.

Nishant Patnaik May 13, 2016

Jayant Sinha, Minister of State for Finance has reportedly said that suggestions from all stakeholders including IFAs need to be sought before framing any rules for the MF industry. He said that a proper process should be followed while drafting any rules. He was interacting with the representatives of IFA associations in Delhi today. This meeting lasted for 35 minutes.

Typically, regulators issue draft circulars to seek feedback from all stakeholders before coming out with the final regulations.

Bhushan Mahajan, Director, PIFAA told Cafemutual that Sinha has given a patient hearing to them. He said, “We got an encouraging response. The minister has told us that he will facilitate a dialogue with SEBI. He has assured that our voice will be heard.”

Praveen Chhajed, President, PIFFA said that the minister has asked them to draft a white paper which suggests ideas and strategies to increase the penetration of mutual funds through SIPs. The idea is to increase the participation of retail investors through SIP ten-fold in 10 years, he added. As on March 2016, the MF industry has over 98.50 lakh SIP with gross inflows of over Rs. 3,200 crore each month.

Chhajed said that PIFAA has initiated this interactive session with the Minister for the welfare of IFA community.

Meanwhile, the delegation has handed over a letter to the Minister in which they have requested that the commission disclosure should be in percentage terms.

Around 19 delegates from Delhi, Mumbai, Pune, Agra, Varanasi, Kolkata, Ahmedabad, Chennai and Bengaluru are said to have attended the meeting.

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34 Comments

Dinesh singh · 8 years ago `

This is encouraging effort done by PIFAA,we must all be united now .This is fight for our existence so we all come on common plateform.
Also those who believe that I am survived not others they must be come on common plateform.

cs kabra · 8 years ago

there should be uniform code of regulations for all financial products and singular agency to monitor. In case of frequent regulatory charges in mutual fund industry the intermediaries fail to understand the rationale behind spate of changes introduced by SEBI this year. in which retail sector where manufacturer or provider market their products thru retail distribution, the consumer or end user is benefited by income disclosure and at present there is no sector which allows this hence to use it in MF industry is extremely surprizing and out of sync. The investors want good products at decent service hence this is a step taken in haste. Now about service tax matter we see every year some cha ge. what is the logic of direct charge when distributors do"nt take any payments from investor. Why investor pay service tax when he buy shares/real estate /insurance /fixed deposits or gold and in case of MF the distributors will have to shell out on behalf of investors. This is ridiculous and highlh discriminatory - can somebody explain.

R tayal · 8 years ago `

We are a small group of IFA s , NcR based support u fully and wish to join hands.

Vijaye Bawri · 8 years ago `

"Kudos" to Pune Independent Financial Advisors Association (PIFAA), a group of 20 Wealth Managers.

tdevendra · 8 years ago `

it is really heartening to know at least somebody is here to understand the problems being faced by the IFA'S fraternity. also it is imperative that the commission structure needs to be based on inflation returned rather than fixing /capping which is heavily in favour of AMC/DISTRIBUTORS, rather than the persons who are building capital for the economy of the nation. service tax issue is still not resolved to the satisfaction of the budding ifa's who are dealing through distributors god bless

Sumesh · 8 years ago `

Well done friends. Associations please coordinate with all and make the dialogue continuous and productive.

Purshottam Jha · 8 years ago `

Commendable efforts by PIFAA. Heartiest Congratulations!!!! Every effort & demand should have a genuineness, then only ur heart will allow for a full hearted approach. Our Country currently, is not at all ready for this experiment of SEBI. It will ruin the industry. Moreover, SEBI's move will definitely benefit the Asset Management Cos, who has grown & stand up on the cost & support from IFAs. Now these AMCs have started poaching the clients of IFA's & converting them into direct. Some of the AMCs have even appointed National Coordinator for Direct Clients. They are not doing any activity for educating new, unaware Direct Clients, but they are working on the existing clients of IFAs. Are these circumstances are not taken into account by SEBI. Is SeBI not taking such measure which will finish IFA community & prosper AMCs. Do SEBI have data that how many direct IAPs without distributors have been conducted by AMCs. They are sitting over the money of Investor's education, sitting in air conditioned office. The entire effort is done by IFAs. Now the SEBI things that MF industry has somewhat stand up, it has given the responsibility to drive this industry is the hands of AMCs. Crushing the common man & enjoyment on tax payer's money by rich & corporates has been the trend of this country, whichever Govt comes. The only possible solution of this country would be public revolt in times to come. The above fact has come out of my personal experience as I have worked in different AMCs for last 13 years under Regional Profile.

prabhu · 8 years ago `

Congrats to you PIFAA .

Pradeep Kumar singla · 8 years ago `

Good steps any support from Gurgaon always with you

d b desai · 8 years ago `

Thanks PIFAA for the work done by you for IFA community. All associations, individuals, groups should immediately come together to form a national body at least for this purpose and try to make the regulators understand the reality. At the same time I feel IFAs should always be prepared to face many such shocks in future.

Debasis ghosh · 8 years ago `

Thanks to PIFAA for represent the whole IFA community and for the dialogue with the Honorable Minister.we the IFA should immediate together in this issue and for future. Please advice us how we can be a member of PIFAA.

Mohammad Haseen Ansari · 8 years ago `

Congratulations to all

INDRAJIT SARKAR · 8 years ago `

Congratulate to PIFAA

Manoj Srivastava · 8 years ago `

Appreciate all your efforts PIFFA n Team ,Lets hope that the plight of IFA will be reduced soon.

dipak gandhi · 8 years ago `

yes well done..and still we need to project for service tax liability problem also since it incurrs a long term impact on all of us..either it sud be reduced or shared by AMC and investors also...and i think direct deduction was some what better than current norms of registration with sales tax dept..think all..

N K MEHTA · 8 years ago `

Good effort,Congratulations. I want to know, "Is there any business or professional activity in advance declaring percentage of profit or commission".I.am also suggesting govt to provide separate dedication in addition to ? 1.50 lacs for proper development of MF Industry.

vinod kumar harjai · 8 years ago `

Thanks PIFAA organizing the meet with HON jayant sinha

KOUSIK CHATTERJEE · 8 years ago `

Great effort by PIFAA, well done

Deepak kumar · 8 years ago `

Thanks to Mr Sinha ji that he has paid attention to IFA'S problems through PIFAA'S efforts.

Vijay Prakash Singh · 8 years ago `

well done friends. we have to fight against sebi for commission disclosure

Laxminarayanan Kumaar · 8 years ago `

Great efforts. Congrats PIFAA

BHANU P SINGH · 8 years ago `

Very good initiative taken atleast to make voices of IFA reach to Hon'minister

Arun Alegaonkar · 8 years ago `

Hearty Congrats to Pune Based PIFFA TEAM,Since inception I am watching your out standing work as a member,every year our work is growing like any thing,all directors working hard for any such type of work,KEEP IT UP.

Arun Alegaonkar · 8 years ago `

Sorry pl read PIFAA

devendra khandelwal · 8 years ago `

pifaa congrats for seeking appointment with sinha and intracted with minister.we are with u u in this matter

Pawan Kumar Joshi · 8 years ago `

Congratulations to you all.

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