The ARN fee has been revised twice since 2010.
Those who wish to sell mutual fund schemes need to register with AMFI by paying ARN (AMFI Registration Number) fee after they pass NISM Mutual Series V-A: Mutual Fund Distribution Examination. SEBI had made it mandatory for distributors to register with AMFI in 2002.
Distributors are not allowed to apply for multiple ARNs under one name. However, any family member of a distributor can apply for a second ARN. Registrar Computer Age Management Services is entrusted with the task of creating ARNs.The registered distributors are recognised as AMFI Registered Mutual Fund Advisors (ARMFA).
Who conducts the NISM Mutual Series V-A: Mutual Fund Distribution Examination?
NISM conducts this exam. Till June 2010, the exams were conducted by AMFI and the validity period of this certification was five years which was later reduced to three years.
Renewal
The ARN license is valid for three years. If the ARN is due for renewal, distributors are supposed to appear for CPE. After clearing CPE their license is further renewed for three years. Distributors have to attend a two day CPE programme conducted by NISM within a period of 12 months prior to the expiry of the certificate. Distributors can either attend this programme two consecutive days or with a gap after which they have to appear for a test. If the candidate appears for the exam during two consecutive days the fee works out to Rs (1700 x 2 = Rs 3400) and if given with a gap (Rs 1800 x 2 = Rs 3600).The certificate gets revalidated for three years.NISM has also appointed Centre for Investment Education and Learning (CIEL) and NSE for conducting CPE.
Changes in fee structure
AMFI had hiked the ARN fee in 2010 for individual distributors from Rs 500 to Rs 5000.The ARN renewal fee was also hiked from Rs 250 to Rs 2,500. For categories like banks, NBFCs, and institutional distributors the renewal fee was raised from Rs 50,000 to Rs 2.50 lakh.
Subsequently from November 2012, AMFI reduced the fee across the board for all categories of distributors. For individuals, the registration fee was reduced by 40% from Rs 5000 to Rs 3000.
The renewal fee is now 50% of the ARN registration fee. In order to attract more distributors, AMFI has waived off ARN fee for those who register to get ARN for the first time under the Individual (including senior citizen) and for the new cadre of distributors till June 2013.
New ARN fee applicable from November 2012
|
Entity |
Revised ARN Registration fees (Rs.) |
|
Banks (Other than those specified below) |
4,00,000 |
|
Regional Rural Banks, District Central Co-Op. Banks, NBFC, etc. |
1,00,000 |
|
Public Ltd. Co. |
4,00,000 |
|
Pvt. Ltd. Co. |
40,000 |
|
Limited Liability Partnership (LLP) |
40,000 |
|
Partnership Firm |
20,000 |
|
Urban Co-Op. Banks, Societies and Trusts/ HUFs |
20,000 |
|
Post Offices/ Micro Finance Companies |
15,000 |
|
Individuals including Senior Citizens and Proprietorship Firms |
3,000 |
|
New Cadre of Distributors as defined in SEBI circular dated September 13, 2012 |
1,500 |
|
|
|
|
Corporate Employees |
As per Grid Below |
|
No of Corporate Employees |
Fees per Employee (Rs.) |
|
First 100 Employees |
3,000 |
|
*Incremental 101 to 200th Employees |
2,000 |
|
*Incremental 201 to 500th Employees |
1,000 |
|
*Incremental above 500th Employees |
500 |
|
Source : AMFI |
|
a. *corporate employees 'per employee fee structure' is applicable incrementally. For example: if an organization has 150 employees and they want to register all the employees with AMFI, it will cost them (Rs.3,000/- x 100) + (Rs.2,000/- x 50) = Rs.4,00,000/-. Distributors with existing corporate employee registration to get benefit of incremental cost reductions.
b. The quantum of incremental benefit will also be determined based on the number of valid employees registration as on the date of receipt of application for registering additional employees of the company. For example: If company has already registered 100 employees and submitted application for additional 50 employees. However, from the record it is observed that out of 100 employees registered earlier, in case of 25 employees, ARN validity has expired then incremental benefit will be restricted to 25 new applications (out of the application received for 50 employees).
c. Along with the application for additional registration of employees, company should also give confirmation in writing that all the employees registered earlier are continuing with them and have a valid ARN card as of the date of application. (Source: AMFI)
