25th April 2011

WF : When was IFA Galaxy created and what was the genesis of this idea?

Ramesh Bhat : IFA Galaxy was created in the year 2009 and registered under Tamil Nadu Societies Act as a society on 8th September 2010. The main idea of this Society is Knowledge Sharing also to form various associations across India and unite them all under a common Federation of IFAs.

WF : How has IFA Galaxy grown in the last couple of years? How many registered members do you have now and what is the geographic spread?

Ramesh Bhat : We started with around 150 to 200 members in our group in and around Chennai and now we have grown to 9162 members (as of 20th April 2011) PAN India in our Google Group. We have members from even from small town in Eastern India.

WF : What are the rules governing membership and what is the annual fees payable by a member?

Ramesh Bhat : At Present, the membership to IFA Galaxy is open to all IFAs across the country. They become a Member by subscribing to the E Mail / SMS Group. There are NO charges for becoming a Member. We would however collect a fee for participating Members in our Annual Mega Knowledge Summit. Also we are encouraging IFAs in other Cities / Towns to form their own Associations and we are planning to bring ALL such Associations under the IFA Galaxy Umbrella. Hence in course of time, IFA Galaxy will become a Pan India Federation, and will have all the IFA Associations as Members

WF : What are the main activities of IFA Galaxy?

Ramesh Bhat : We use our website and mailers to disseminate information which are important and useful to all our members. We keep our members up to date about all the happenings across the country with regard to Regulations, Circulars etc. We conduct Knowledge seminars at various cities. Initially we had done in Chennai and Trichy. Now we are planning for one in Cochin and Salem.

WF : You have successfully conducted knowledge forums in Chennai, Trichy and Kochi. What are the key insights that you picked up from participating members during these knowledge forums?

Ramesh Bhat : As far as Kochi is concerned it was the launch of their association. I had addressed the IFAs about the need to be united and forming a team under CIFAA (Cochin IFA Association). We will be shortly conducting Knowledge Seminar in Kochi followed by Salem. Salem also formed an Association SIFAA and conducted a launch meeting recently at Yercaud which was addressed by our Treasurer Mr. S R Chandrasekaran.

Tier II and Tier III cities are facing various operational issues due to recent regulatory changes. Proper Advisor education is not forthcoming in Tier II & III cities. As they are not computer savvy they are not up to date about the changes that are happening in the industry. So they welcome the knowledge seminars conducted by us and attend in larger numbers.

WF : How are IFAs in South India coping with the transition that regulations have foisted upon the distribution fraternity over the last 18 months?

Ramesh Bhat : From the interactions we have had and the mails that we receive: Most of the IFAs feel that the regulations have been brought in too quick, without anticipating the problems it can bring. The Regulations are tilted towards the large distribution community like the banks & ND's although most of the miss-selling happen in this segment. Many of the smaller IFAs who were the link for II & III tier cities have lost interest in recommending mutual funds. Not only because of very negligible income earned but also because of operational reasons (DD's have to be taken for which the Branch Manager of the concerned bank has to give a confirmation letter for a fee which is a big irritant). No investor is ready to pay the 2nd cheque in these places.

WF : What are the key issues that you think needed to be resolved to enable IFAs to become more productive and profitable?

Ramesh Bhat :

• Clarity on the fee model.

• Take feedback from the cross section of the advisor community consider the majority view before implementing important issues.

• Amfi should start conducting educative programs for the benefit of advisors in the tier II & III cities.

• Resolving Operational irritants in the Tier II & III cities.

• Launch of an Online Platform for the conduct of smooth transactions in their respective ARN Codes.

WF : What are the key areas where advisors need to improve themselves in order to serve their clients better?

Ramesh Bhat :

• Start accepting change

• Acquire more knowledge

• Become Tech savvy

WF : What is the long term vision for IFA Galaxy? Would you consider creating a fund platform for IFAs? Where do you see IFA Galaxy in the next 5 years?

Ramesh Bhat : Our first and foremost Vision and Mission is to impart Knowledge. We plan to conduct Knowledge sessions across India for the benefit of IFA's in the coming years.

To create IFA associations across all major cities in India and unite them all under one banner to represent before the regulator. We are also open to all ideas in this context.

With regard to Fund Platform, we have been discussing about this with some tech solution companies. But we think if AMFI comes out with an online platform it will be the best solution.

WF : What is your key message to IFAs at this time of significant change and transition?

Ramesh Bhat : There is huge potential for the advisor segment. There may be small hiccups here and there but we have to think for the future. Recent actions by the Regulator indicate that there seems to be hope at the end of the tunnel.