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Circular & News

S.No AMFI Circular No. & Date Instructions Details
1. AMFI Circular 35P/MEM-COR/ 38/13-14 dated October 10, 2013

Submission of Annual Self Certification to CAMS only by the Distributors
AMFI has requested AMCs to advise the distributors empanelled with them to submit Annual Self Certification in the prescribed format ONLY (available on AMFI Website) to CAMS, AMFI Unit, from the Financial Year ending March 2013 onwards and there is no need to resubmit the same separately to R & TAs, so as to avoid receipt of multiple declaration forms from one distributor.
2. AMFI mail dated October 14, 2013

- Extension of Fee waiver period up to March 31, 2014 for new cadre of distributors
AMFI has decided to extend the waiver of fee registration (for all first time registrations in the categories of Individuals (including Sr. Citizen) and new cadre of Distributors) till March 31, 2014 on the terms and conditions as provided in AMFI circular 35P/MEM-COR/36/12-13 dated January 14, 2013.

2. According to AMFI e-mail, AMCs are requested to:
Display this information on their website and
Encourage registration of Distributors in these categories by promoting this during their marketing campaign
3. AMFI Circular 35P/MEM-COR/40/13-14 dated October 17, 2013

- NISM-Series-V-A: Mutual Fund Distributors Certification Examination - Removal of negative marking
NISM has now informed AMFI that negative marking will be removed for NISM-Series-V-A: Mutual Fund Distributors Certification Examination w.e.f. October 25, 2013.

According to AMFI circular, AMCs are requested to promote this among prospective distributors by using various forums such as marketing campaigns as well as training programs conducted by the AMCs
4. AMFI Circular no 35P/MEM-COR/ 35/ 13-14 dated October 09, 2013

Conducting NISM Certification Examination at any place in India under NISM Invigilation
NISM has informed to AMFI that they are ready to conduct exam at any place in India, other than the present exam locations, provided there are minimum 50 candidates appearing for the exam subject to complying with the policy guidelines as follows.

1. Policy Guidelines by NISM for conducting NISM Certification Examination at the test centre outside NISM Campus:

a. The minimum batch size of the candidates per day is 50. However, in the event of the actual number of candidates on a certain day falling short of 50, concerned organization shall be reimbursing to the NISM an amount equivalent to the total fee of the number of candidates falling short.
b. To and fro pick up from airport, stay and food arrangements of NISM invigilators will be provided by the concerned organization, free of cost.
c. The concerned organization has to offer a Test Centre (compatible to NISM requirements) as the infrastructure for conducting NISM Certification Examinations. These centers will be made available for inspection by NISM officials one day prior to the scheduled date of the examination.
d. Invigilation support will be provided to NISM by deputing officers from the concerned organization as and when required.
e. Prior approval of NISM will be obtained before enabling any centre for conducting NISM examinations. Mock run for the examination at the center will be conducted by NISM to ensure that all the conditions stipulated for conducting such examinations have been fulfilled.
f. Invigilation support will be provided to NISM by deputing officers from the concerned organization as and when required.
g. All the registration and enrollment against the NISM Certification Examination will be made by the candidate/s or the concerned organization in an online mode.

Upon finalizing the arrangements, a formal Agreement in the form of exchange of letters will be entered in to.
5. AMFI mail letter 35P/MEM-COR/51/13-14 dated January 1, 2014

- Dispensation from requirement of submission of additional documents for obtaining ARN – for Senior Citizens and New Cadre of Distributors
a. As per the current process, applicant is required to submit additional documents such as proof of age/ experience certificate issued by AMC/ Member of stock exchange, at the time of obtaining ARN under “Senior Citizen” Category, in addition to CPE certificate. Similarly, for application under “New Cadre of Distributors”, applicant is required to submit additional documents such as Experience certificate issued by the employer/ relieving letter issued by employer/ Appointment letter issued by the respective Authorities, etc, besides certificate issued by NISM.
b. It has been decided by AMFI that procuring a copy of the certificate issued by NISM for registration of ARN under Senior Citizen category and New Cadre of Distributor is enough and dispense with obtaining additional documents.
c. AMFI has advised CAMS suitably in this regard and also making relevant changes on AMFI Website. AMFI has requested to AMCs to bring this to notice of prospective distributors.
6. AMFI mail letter 35P/MEM-COR/53/13-14 dated January 21, 2014 and email dated January 22, 2014

- In-Person Verification (IPV) through Web Camera.
a. This has reference to AMFI e-mails no. 35P/MEM-COR/08/12-13 dated August 07, 2012 and 35P/ MEM-COR/41/12-13 dated January 29, 2013 regarding updation of additional/ missing information by the investors who had completed KYC formalities prior to January 01, 2012.
b. Individual investors are required to undergo In-Person Verification (IPV) as a part of updation of additional/ missing information with KRA. SEBI has now clarified that as per the SEBI KYC circulars issued from time to time, In-person verification through web camera can be performed by any intermediary and records of the same shall be maintained.
7. AMFI Best practice Guidelines Circular No.135/BP/ 43/2013-14 dated January 22,2014

- Guidelines on Transfer of AUM from one ARN to another ARN.
a. The trail commission in respect of transferred assets (change initiated by the existing distributor)can be paid to the new distributor (ARN holder), wherein the process specified in the circular has been followed by the distributor.
b. In case of any exceptions to the above best practices, AMC has been advised to refer the same to AMFI for clearance. As AMFI had observed non adherence to the Best Practices Guidelines issued by AMFI in the past, AMCs have been specifically advised to follow the above guidelines in letter and spirit to ensure uniform implementation of the procedure for transfer of AUM from one ARN to another ARN, across the Mutual Fund Industry.
c. AMC have also been requested to place this Best Practice circular before Board of Trustees for their information and confirm the same to AMFI.
8. AMFI circular no. 35P/MEM-CORP/60/13-14 dated March 27, 2014

- Fee waiver period ending on March 31, 2014

AMFI has given waiver of registration fees for all first time registrations in the categories of individuals (including Sr. Citizen) and new cadre of Distributors during the period February 1, 2013 to March 31, 2014 subject to fulfilling certain conditions.

It has now been decided to reinstate ARN fees for these categories of distributors with effect from April 1, 2014.

AMFI Circular CIR/ARN-17/14-15 dated September 26, 2014

Revision in the formats for Declaration of Self Certification by Distributors Instructions -

Pursuant to SEBI (Investment Advisors) Regulations, 2013, the AMFI Committee on Registration of Certified Distributors has recommended certain changes in the formats for 'Declaration of Self Certification (DSC)' to be submitted by ARN holders every year, in partial modification of the existing formats contained in AMFI circular no. CIR/ ARN-12/ 10-11 dated March 1, 2011. The revised formats of DSC applicable to various categories of distributors/ ARN holders are attached herewith. The revised formats would be applicable for DSC to be submitted for the current financial year ending March 31, 2015 onwards.

Members are requested to inform the distributors empanelled with their respective AMCs suitably about the revised formats.

Further, as communicated earlier, effective from April 2013 (i.e. for the Financial Year ended March 31, 2013), distributors are required to submit only a single Annual DSC to CAMS (AMFI Unit), instead of submitting separate DSC to each RTA. CAMS (AMFI Unit) shares the information regarding receipt of the DSC with other RTAs.

10. SEBI email dated April 28, 2015

- Uniform disclosure on treatment of applications under Direct / Regular plans

In order to have a uniform disclosure on treatment of applications under "Direct" / "Regular" Plans, the following disclosures are to be made by AMC in their SID/KIM

11. AMFI circular no. 35P/MEM-COR/28/14-15 dated March 11, 2015

- Indicative rates on Mutual funds products

Some AMCs highlighted the continuation of practice of giving indicative rates for mutual fund products to potential investors. Such a practice having being strictly prohibited by the regulator, was not in the interest of the industry. AMFI has communicated to all members once again to exert restrain on their empanelled Distributors/IFAs and marketing personnel from giving indicative rates while selling the products.

AMFI has advised AMCs to enforce discipline amongst its distributors/IFAs and marketing personnel to strictly adhere to the regulatory requirements to ensure full compliance.

12. AMFI Best Practices Guidelines circular 135/BP/54/2014-15 datedMarch 26, 2015 and revisions thereof

- Distribution Cost – Commission pay-out

Best Practice Guidelines: Applicable for all transactions with effect from April 01, 2015 subject to review after three months Limits are prescribed for Upfront commission ,Trail commission, total distributable commission etc.

13. AMFI circular 35P/MEM-COR/12/15-16 datedOctober 7, 2015 Revision of fees – EUIN registration / Renewal

There was a graded fee structure for allotment of/ renewal of Employee Unique Identification Number (EUIN), based on the number of employees registered under an ARN to which EUINs are mapped.

AMFI has decided to dispense with the graded fee structure and rationalise the EUIN fees with effect from 1st November, 2015 as below.

a) Fresh Registration fee – Rs. 1500/- b) EUIN Renewal fee – Rs. 750/- (Every three years)

The EUIN validity would continue to be co-terminus with the validity of NISM certification (Exam/ CPE) i.e. three years.

14. AMFI Best Practices Guidelines circular 135/BP/66 / 2015-16 dated November 26, 2015

- Providing Transaction Data "Feed" to Distributor & Investment Advisers in respect of applications received directly / under Direct Plan

AMFI had been receiving requests from AMCs, Mutual Fund Distributors and SEBI-registered Investment Advisers (IAs) to permit providing transaction data feeds in respect of investments under Direct Plans by obtaining specific written consent from the clients. Therefore, AMFI sought SEBI's guidance in the matter and issued this circular.

SEBI has advised AMFI that the data feed (portfolio holdings, transactions, NAV, etc.) of investors who subscribe to Direct Plan on the advice of Investment Advisers/distributors may be shared with such IAs/Distributors, after obtaining explicit written consent of the investors.

AMFI further partially modified above circular by issuing another circular on December 17, 2015. As per modification mutual funds/AMCs may share the data feed of investors under Direct plan only with SEBI-registered Investor Advisers (IAs), subject to explicit written consent of the investors.

15. AMFI mail dated December 29, 2015

- Communication sent to ARN holders regarding KYC Compliance

AMFI has sent an e-mail communication to all ARN holders regarding KYC Compliance , to reiterate the requirements to be fulfilled by investors for complying with the KYC obligations as mentioned in AMFI Best Practices Guidelines Circular No. 62 / 2015-16 dated 18-09-2015 regarding Uniform Implementation of KYC Requirements to overcome KYC related issues, providing Ultimate Beneficiary details and FATCA/CRS declaration.

16. SEBI circular SEBI/HO/IMD/DF2/CIR/P/2016/37 dated February 25, 2016

- Distribution of simple and performing Mutual Fund products :

Vide SEBI circular dated September 13, 2012, a new cadre of distributors were allowed to sell simple and performing Mutual Fund products. In partial modification of the said circular, SEBI advised that simple and performing Mutual Fund schemes shall also comprise of Retirement benefit schemes having tax benefits and Liquid schemes/ Money Market Mutual Fund schemes. (Scheme should have returns equal to or better than their scheme benchmark returns during each of the last three years).

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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