Regulatory changes and technology cannot challenge the role of independent financial advisors (IFAs) in the mutual fund industry, conceded speakers at the recent Business Standard Smart Business panel discussion on ‘Expending Earnings of IFAs & Impact of Recent Regulatory Changes on the Mutual Fund Industry’ organized in association with Independent Consultants & Advisors Association (ICAA) in Kolkata.
A recent circular by Sebi, effective October, mandates disclosure of absolute amounts of commissions paid by funds to distributors. Debashish Mohanty, country head and executive vice president, retail, UTI AMC, said that the mutual fund industry was not mature enough to accept the regulation. If implemented, the regulation would not lead to any threat to the business of IFAs, he added.
