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Comments Posted
Bayyaram Manohar ARN NO :ARN-52475 Hyderabad, 06 Jan 2018

I strongly agree Sir, AMFI and AMCs must protect the IFA community from the poachers. Let distribution be the fair play.

Deepak Khandelwal ARN NO :ARN 72539 Jaipur , 07 Dec 2017

I agree with modani that This is a going to be a big problem for all IFA who are working hard & All AMC should consider this issue very seriously

R. B. DWIVEDI ARN NO :0242 RB DWIVEDI Faridabad, 03 Dec 2017

I fully agree with Mr. Ashish Modani. I think unless SEBI intervenes, AMFI or AMCs will not take interest to do anything because their overall turnover is not effected by this abuse in change of broker..

C K VANITHA ARN NO :ARN-90855 Bangalore, 01 Dec 2017

Yes true.Many banks and national distributors have a habit of forcibly retaining the investors. So they ensure to execute the transactions in online and even if asset transfers are executed by investors from them to IFA, still the new entries would keep running in the bank or ND counters only. This is the reality. So we need to stop the SIP ,do the asset transfer and start afresh the SIPs to ensure the credit in IFA code. Even the fund houses supports the big counters, as they want their continued larger support.So convincing the investors to stop and start for the right guidance /service should not be a problem.

SAGAR KIRANKUMAR PANCHAL ARN NO :92495 Navsari, 01 Dec 2017

Absolutely agree with your points.. we all IFAs should unite & raise our voice in 1 direction..

Rajiv Jhaveri ARN NO :Jhaveri Investments MUMBAI, 01 Dec 2017

Ashishji, I agree with you. You have raised a Very Very Important issue.. I think all of us should agree with your Point of View & Solution. All of us should convince AMCs to make it happen. Thanks a Lot for Raising it & also for showing Logical Solution.

L SIVA SANKARA NARAYANAN ARN NO :ARN-70189 NAMAKKAL, 01 Dec 2017

THANKS,Well said Mr. Ashish, remedy has to come from Regulator as well as Asset Management Companies,

SWAPNIL MUTHA ARN NO :32915 Baramati, 01 Dec 2017

This is real truth & everyone of us is facing this or will face it very aggressively soon. Big broker / NDs are doing & using every way out to get this. NDs are associating with CAs & Tax consultants, and asking them to covert their clients existing MF investments under NDs code. Offering attractive cash & non cash benefits to them. We were worked hard for current days...but through this practice we will finish very soon. No one will help us...its dam business. Be prepared with some other income source to survive.

ANAND SINGH NEGI ARN NO :53996 New Delhi, 01 Dec 2017

I agree with Mr. Ashishs View & fully support it. This unethical practice should be checked & AMFI Should take appropriate steps in this direction.

Sreejith.P ARN NO :ARN-20949 calicut, 30 Nov 2017

Well said Mr. Ashish, remedy has to come from Regulator as well as Asset Management Companies,

Vikas Batra ARN NO :6574/stockmart Mohali, 30 Nov 2017

Thanks Ashish ji, for bringing out the industry issues out, we all small IFAs are facing the same problem throughout the country, we work hard to increase our sip book but these NDs and newcomers have started creating a problem for sincere hard working IFAs

Jackson Cherian ARN NO :16924 kottayam, 30 Nov 2017

I have gone through the said experience.. I got an sip of 10000 going behind six times almost spent 18 hrs and educated them. One day after 10 months. got a letter from one AMC request for change of broker.. I was shocked. and found that. DBFS broking firm had approached the client and switched all the fund to that broker code.. Actually client was not aware of this... I approached AMC. They replied that they are helpless..

SrinivasanTS-CFP ARN NO :WealMan Associates Bengaluru, 30 Nov 2017

Part 2.... contd from last post... This way,feedback is being provided to all stakeholders and ensure,the Key Person the Disti is protected, who actually sourced business. He /she can correct for any genuine service related issues as experienced or perceived by Consumer/Investor. In all your Events/Conventions, let the Association Spokespersons highlight these to get a fast resolution. Pro active AMCs will understand and act soon in the larger interest of IFAs. Best Wishes, SrinivasanTS-CFP

SrinivasanTS-CFP ARN NO :WealMan Associates Bengaluru, 30 Nov 2017

Workable Solution: Together,through our respective associations, we all can send a note to AMFI. 1) Cooling time for Change of Broker,where opted for, by Investor( by Choice or Temptation, whatever ,may be the case) 2) COB intimation,immediately to the existing Distributor by mail and not to resort conveniently,to a hard copy 3) In the absence of a revert,within 30 days,default mode changed to " Direct" benefiting the Consumer. 4)Similar intimation to Investor,for reasons of Change of Broker. If they ( investors)dont respond,no change of Broker accepted by AMC. This way,feedback is being provided to all stakeholders and ensure,the Key Person the Disti is protected, who actually sourced business. He /she can correct for any genuine service related issues as experienced or perceived by Consumer/Investor. contd...

Gurupad Parsi ARN NO :ARN-2548 Vasco,Goa, 30 Nov 2017

Dear Sir,The facts stated are 100& true.I practically experienced it.I request all IFAs to raise their voice,otherwise big cecodlile will eat our sips without any effort.

Sam Koshy ARN NO :5727 KOLLAM, 29 Nov 2017

Mr Modani has a very important point for all the IFAs to think about. IFAs must approach the AMCs seriously with the said issue for a logical solution. Though we all know such broker changing and switching are totally detrimental to the investors wealth creation such threats are serious from not only the national distributors and demat service providers but also the AMCs Desired Plans too which are promoted by separate sales channels in most fund houses. I hope the regulators and AMFI will take it very seriously.

Indira ARN NO :JMF BANGALORE, 29 Nov 2017

All the CEOs of all AMCs must act on this empathetic approach and Ethical practices must be implemented on top priority

Tansu ARN NO :113572 Bwn, 29 Nov 2017

AMFI and AMC have to think over it seariously and help us who want to built career in this mf distribution industry...

Shankar ARN NO :Credo Capital Chennai, 29 Nov 2017

What a timing, finished reading this and was zapped to find that existing SIP AUM of a client has been moved out first from equity fund to a liquid fund and then again to same equity fund growth plan. This was done by a very large ND, not only the future SIP brokerage go to the ND but also the existing AUM brokerage too. Ingenious asset hunting !!

Harsha Dholu ARN NO :103876 Thane, 29 Nov 2017

AMFI and AMC have to think over it seariously...

Shivakumar ARN NO :ARN-124434 Bangalore, 29 Nov 2017

There are other issues as well. I am new to this industry of distribution where I am given lesser % of brokerage as compared to these hugely funded distributors. Also, I am not even provided a list of brokerage % by scheme even though I have a relationship manager. He or the AMC does not even care to call back to provide the details even after raising this issue many times. One of them is ABSL. I had to forcefully empanel with national distributors for clarity of brokerage for which I am sharing my 35% of commission with them.

Vivek Shah ARN NO :ARN-125674 Surat, 29 Nov 2017

SIP should be locked to original broker for life-term, change of broker should only be allowed in lumpsum investments.

George Joseph ARN NO :18011 Bangalore, 29 Nov 2017

Since there is no commission payable to borth distributors, the units should be shifted to the DIRECT mode so that the investor gets the benefit when commissions are so disabled. Also, for old units, THE AMC IS NOT PAYING ANY COMMISSION TO EITHER BROKER. These units should automatically be shifted to the DIRECT mode to prevent the AMCs from undue profit from higher TER on units because the outflow on commissions stops with change of broker.

DEBRAJ SENGUPTA ARN NO :ARN-38509 KOLKATA, 29 Nov 2017

IN SUCH INSTANCES IF ANY DISTRIBUTOR WHO ACTUALLY SERVING THE CLIENTS AND MANAGING MONEY WELL - BY ASSET ALLOCATION, EXPLAINING THE BASICS AND TENETS OF INVESTING , GOAL PLANNING ETC. I DONT SEE ANY WRONG IN SWITCHING THE BROKER . BUT AGAIN AS MENTIONED IT SHOULD BE OF PARAMOUNT INTEREST TO SEE THE BENEFITS OF CLIENTS AND START FRESH SIP AND IF THE CLIENT AGREES CAN SWITCH THE SAME TO OWN CODE

DEBRAJ SENGUPTA ARN NO :ARN-38509 KOLKATA, 29 Nov 2017

THE ABOVE ARTICLE IS TRUE OF ITS SPIRIT. I FULLY CORROBORATE THE SAME. WHAT I THINK IS THAT THE AUTHOR HAS SILENTLY AVOIDED A BURNING ISSUE - CONVERSION OF REGULAR INVESTMENT TO DIRECT INVESTMENT BY SOME ENTITIES. IT IS EQUALLY UNFAIR ON DISTRIBUTORS AS WELL AS INVESTORS. SINCE SOMEBODY HAS BROUGHT SOMEONE INTO THE INDUSTRY,DONE ALL HARD WORK OF DOING KYC, EXPLAINING BENEFIT OF LONG TERM INVESTMENT, ASSET ALLOCATION AND THEN SOME JOHNNY SNATCHING AWAY THE RIGHTFUL SHARE OF EARNING IS NOT ACCEPTABLE. SIMILARLY, MANY INVESTORS HAVE STARTED SIP WITH VAGUE IDEAS OF ONLY GAINING RETURNS . THERE IS NO WELL THOUGHTS BEING PUT BEHIND CHOOSING SCHEMES, POSSIBLE OVERLAPS, NO ASSET ALLOCATION AND MORE IMPORTANTLY NOT ADHERING TO RISK APPETITE OF THE CLIENT AT ALL. ALSO THE SAID OLD DISTRIBUTOR MAY BE ASLEEP FOR GOOD LONG TIME AND NOT HANDHOLDED THE CLIENT AT ALL.

Alagappan ARN NO :Alagappan Chennai , 29 Nov 2017

Dear Friends, The abv mentioned threat is always there, Probably u people are experiencing it for the first time, I am in this industry for the last 12 years we have seen first direct then change of broker code then no compulsory load it is a win win situation always in any industry we have to live with it. Then look at the banks and nd cries when a staff quits them and picks up 100 to 200 crores of aum . I will tell another example people who are all in this profession for more than 10 years will accept that there commission is around .75 to .8 trial since there initially mobilised investment procure only .5 % trial , there are many amc which pay me even today .4/.5 trial even though the new investment are paid higher so for the olden investment and hence our average commission is on an average.75 only The same way we have to accept the fact that client can leave a distributor before 3 years this is an industry average

DB DESAI ARN NO :0234 KUDAL, 29 Nov 2017

A big, may be National, distributor opened a new office and started sending performance cards of MF schemes to the investors of the existing IFAs. These investors have never asked for it, never done any business with them. Even the IFAs themselves are also receiving physical reports and telephone calls soliciting investments. How this data of addresses and telephone numbers is made available to this ND? Are they legally eligible to use it? When I received a telephone call I questioned the caller and she said there is one company which gives us this data. I asked for the name and numbers,address of that company which she could not provide. This is a serious issue of poaching which works against the hard working IFA as explained by you. There must be some remedy to this. If anyone knows about how to curb this, please share.

NAVRATAN BAGREE ARN NO :35365 BIKANER, 29 Nov 2017

NICE SIR

Jaideep Parekh ARN NO :Panam Shares & Serv Pune, 29 Nov 2017

Though AMCs consider every SIP as new purchase, commission/brokerage remains the same throughout the tenure which was at the time of registration. It does not change even if brokerage structure is changed along the way. So, while every SIP is a fresh purchase for some purposes, it is not for brokerage!!