The disclosure would reflect all costs like foreign junkets and other expenses incurred on distributors during normal course of business including trail and upfront
Mumbai: Market regulator SEBI has asked fund houses to disclose all expenses incurred on distributors including trail and upfront from March 2012. These disclosures will be a part of the commissions recently declared by AMCs. These expenses would reflect all other costs incurred by an AMC on distributor including junkets and distributor training.
From November 10, AMCs have started disclosing the commissions paid to their 549 big distributors. The disclosure of commissions earned by distributors has been a matter a debate in the industry. SEBI’s move has already drawn flak from distributors.
Apart from brokerage, many fund houses provide value added services to distributors. For instance, Reliance AMC offers CFP course to its empanelled distributors at a subsidized fee. Many fund houses provide a co-branded online investing gateway on distributor’s website for their clients for operational convenience.
