The move follows the decision
taken by markets regulator Securities and Exchange Board of India (Sebi) to
separate distribution and advisory functions in the MF industry
Several mutual
fund (MF) distributors might have to get themselves rechristened because
industry body Association of Mutual Funds in India (Amfi) has barred
distributors from using nomenclature that has references to advisors.
The move follows
the decision taken by markets regulator Securities
and Exchange Board of India (Sebi) to separate distribution and advisory
functions in the MF industry.
“Pursuant to the
regulatory amendment, MF distributors whose registered name has terms such as
adviser / advisor / financial adviser/ investment adviser/ wealth
adviser/wealth manager etc, are required get their registered name changed,”
Amfi said in a circular.
Amfi issued a
non-exhaustive list of names that are permitted and prohibited for
distributors.
“The name of an MF
distributor should reflect the registration held by the entity and should not
in any way create an impression of performing a role for which the entity is
not registered. Thus, every MF distributor, while dealing in distribution of
securities, should clearly specify that he /she is acting as an MF
distributor,” Amfi has said.
The industry body
has also prescribed font size for MF distributors to be used in all forms of
communication such as website, mobile app, business card and signboards.
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