Fund houses to seek clarity from the regulator on the format of disclosing commissions on their websites
Fund houses are in a state of confusion over disclosing commissions paid to distributors on their websites. Through a circular issued on August 22, SEBI directed fund houses to put the details of commissions paid to their top distributors on their websites. But there is still ambiguity about whether the commissions have to be mentioned as aggregate or individually.
Distributors feel their privacy would be at stake if commissions are put in public domain. “Nowhere in the world such data is published,” agrees a sales head of a domestic fund house.
The distributors earning more than one crore as commission would be scrutinized more closely by the regulator. The mutual fund industry has around 80,000 registered ARN holders, out of which close to 43,000 distributors are KYD compliant.
“It is a good move by SEBI as it will bring transparency in the industry. But I am concerned with disclosing my earning to my competitors,” said H K Chugh, an IFA from Kolkata.
Ghansam Trivedi, an IFA from Ahmedabad welcomes the move. “We are supposed to adapt ourselves with the new changes and I am sure this will build–up a more competitive atmosphere where everyone will try to perform better,” said Ghansham.
