I think it is well written , employee and sales man are different ballgame SEBI or AMFI has to understand that salesman don,t get monthly salary they have to spend to go to service clients .I am fully with you sir I hope good sense will prevail regards SUBHASH C PURI

Dear Maloo ji I fully agree with your views, I along with all Ifa of Agra are with you for saving the community of Ifa. Thanks for putting this matter.

Jats were facing problem of not geeting reservation irrespective of having lot of land and properties. They made there problem as not only State problem but of Country problem and the job is done. In India Goverment does not listen the polished and educated people. We have to degrade ourselves to get our job done. There should be City level head, then state level and each person from each state should represent the national form under a national leader. Each of us will contribute a minum amt for this cause and maximum time. The detail i can make out once accepted.

Maloo sir what can we possibly do in legal terms to stop this injustice. if commission is to be disclosed why not for all the financial products including insurance. Legally trust we can ask for injunction on grounds of anti trade and promoting unfair trade practices. Pls guide on points which can help IFA continue with their practice and not worry about passbacks etc.

Apart from all these things even our IFA life can be in danger. If someone wrong sees the amount you are earning his thought process can change and a IFA or his family member can get kidnapped also. So I think this is really a serious issue no where in any business the revenue is written.

Distributors forums should think of obtaining legal opinion about the proposal of displaying / disclosing commission amount in CAS. We have not heard of such disclosures elsewhere. Every HNI is going to fume after checking his CAS. What will follow is well known to the regulator. A hostile move has been made against Mutual Fund distributors. A decent profession is going to be reduced to a business of bargain on the road side market. Distributors Forums should collectively try to obtain Stay Order against such proposal. Then only embarrassing situations and unethical practices can be avoided. Contributions from distributors will flow to meet legal expenses.

It was written with deep pain behalf of all IFAs in demonstrating that regulators cant keep on dictate post getting services from us. Better IFAs should not bring new business until AMCs support for the well being of IFAs..No one believe the bank RM or AMCs direct selling bcos they do for their own interest. Can they understand the feelings of investor just by doing robo advisor method...

Dear Rameshji, Thanks for Raising the voice on behalf of our community. Why disclosure is dominated on us? It is because payment of commission is done from Schemes Accounts. The person who pays the commission should be aware of rate and the amount. If we really want to solve it, then we all should insist for payment of entire commission from AMC account. After that only TER disclosure is enough for complete transparency.

I Believe this should not be implemented ONLY in Mutual Fund Industry but also on other Financial Investment Products like Life Insurance,General Insurance and Postal Products . Surely we can file a WRIT in the court regarding victimization of Mutual Fund Distribution Community.

Maloo Ji you have very well articulated the pain of Distributor Fraternity.Only a Veteran like you could have enumerated these issues.Kudos to you from whole Fraternity. But I sincerely believe that it is action time now.. We all need to go on an Indefinite strike (May be from 1.04.2016), this is the only remedy we have got to show our dissent. Look what Jewellers association have achieved Day before Yesterday after 18 days of Strike.Govt had to intervene and Finance Minister had to personally assure Jewellers about taking care of issues at hand. We cannot be mere spectators all the time.It is our Bread and Butter and we cannot let our Years of Hard work go Down the drain like this. Hence I urge everyone to please Unite and Decide about starting an Indefinite Strike.Let the impact of Distributors dissent be felt by AMC and the regulator.

In USA the MF Industry is just bigger than its GDP. But see here in India, what our regulator is doing, instead of planning to expand the retail participation in the MF industry, SEBI has been consistently implementing the plan to kill the most important part of the industry, the Small Distributor (IFA). It started in August 2009 from banning entry load to so many initiatives to kill IFAs. IFAs has been targetted by all , not just by SEBI. AN IFA with MF Income of Rs 3,00,000 pays 43,500 as Service Tax, with so many expenses, but a normal person(assume AMC/SEBI/AMFI staff), with an income of Rs 5,00,000 pays hardly any tax. I am really unable to understand, how will SEBI expand the retail participation in the MF industry, with real investor base of hardly 60-70 lakhs persons (dont go by folios numbers) Time has come for the IFAs to think seriously about some serious future plan to protect our interests, otherwise be ready with a plan to do some other business.

Thanks Ramesh ji for your timely article. Major actions in the Mutual Fund industry seem to be having only one objective of proving "MF Distributor" (MFD) as the main culprit among AMCs, SEBI and AMFI. Regulator seems to be in hurry to modernize MF industry just like, it is in USA, but overlooking the size of the industry and level of financial literacy in USA. Respected regulator must think keeping in mind the Indian context. According to a report in The Indian Express, retail share is only 22% (Rs.2,76,069 crore) in the Indian MF Industry of 12,74,835 crore (Dec 2015 figures). Corporates 48% and HNI 28%. If we compare it with our GDP at current prices of 2014-15 (125.41 lakh crore), the retail MF Industry, which we cater is paltry 2.2%. Total MF industry to GDP is approx 10%, Which is really is big challenge to the regulator to increase.

Completely Agree with your thoughts Maloo ji... lets be united & show some kind of impact to these regulators & AMCs. The way we used to have Mega login day...can we have a Mega Redemption day?? or can we postpone our further addition of folios to the industry?? can we divert some funds to other investment options like AIF or Corporate FD or elsewhere.. Guys come together before its too late for all of us and create some impact...

dear, sir I am fully agree with you, and stand firm with the advisor community. I assure you to be united against any action taken by our society fo protest against the so called transperant rulds.

Maloo ji we are fully agree with your view,Thanks for putting this matter, Lets plan a course of action and fight against is this time for sure, lets be together friends..

I fully agree with Mr Maloo. Our problem is that persons heading AMFI & SEBI who are from our own industry have always fought for our cause when they are on our side moment they head these institutions and on the other side of court, forget our pains.. Distributor community is the child of two illegitimate fathers (AMFI & SEBI) who know only to curse and not nurse the child .

Regulation means managing complex systems making certain laws and rules but what if regulation itself make systems complex altering so called laws and rules so frequently. 1. Respected SEBI is a body & AMFI, AMCs, Distributors, Investors, TAs are part of this body and all are important in right functioning of system. 2.Sebis role is to manage the mutual fund industry the way PM keeps eye on their ministers. Its easy to keep checks on AMCs and everything will be aligned if regulator should follow this. 3. Where people dont want to pay Rs. 5 for carry bag be it be they shopped in several thousands. How one can expect investors paying distributors making them invest in products where returns are not guaranteed. 4. Mutual fund distributor margin is in peanuts in comparison to margin of n number of products. 5. There is no end to this discussion. SEBI should realize that employees r within organization and distributors r employees outside organization but both are equally important.

I donnt understand that how benfits get investor by discolese of commissin in CAS. if SEBI dont want to work distributor why not they stop the distributor channel.. In ohter hand they want to use us only as a fish cather. we educate the pepole for mutual fund. we give full efforte to make them wealth creation we encorege them for long term investment to creath wealth and lastly SEBI say him that your advisor get such amount as commision and u can save this by shift Direct mode(disclose commsion and shown both pan expence ration.). what a silly thought. More transeparency is kill the principle thingh. why not SEBI understand this or they want to kill MF distributor and want to promote other financaila product which give co benfits not to investor.

so what is the loss for sebi if we stop business it is our loss I am now in a dilema should i renew my licence in july or leave it

Mr Maloo, Thank you for your article. Very thought provoking and I agree with all the points raised by you

I am completely agree with Rameshjis view. I think from Finance Ministry and other upper level policy makers and government employees are doing this with Distributors and MF Industries because they are smart enough to take their investment decision and after sixth and now after 7th Pay commission they can easily invest their huge capital with very less expenses so they are just stabbing the whole distributor model. It is not for benefit of investors but for their own interest.

one temporary sol to this according to me is--request SEBI to put brokarages in % terms and not absolute terms..this is becas nowhere you can compare and judge on basis of absolute term--it s only % that matters most..if some one is investing 5000 in SIP and someone with 10000--then current situation favors invesots with lower amt..becas statement shows double brokarage for same service.. and as such 0.5% payment will not irk any investor..here purpose of sebi to show payment detaisl and ours protection both shall be looked upon..so this is better for both--pl think and request...

Is there any legal way to raise our voice something like filing any legal petition on this issue as why not putting the payouts in terms of % instead of absolute terms , is there some sort of conspiracy going on ?

SEBI Chief should disclose his income first. All products should disclose the profit earned by retailer and wholesaler. Make it compulsory for Medicines, Insurance Policies. Further, This would promote pass back. It is not justified in any manner. U K SINHA hang a placard showing your income. Why only distributors have to suffer all the time??

Foundation of this industries is trust , and already expense ratio is maintain in every scheme, so what are need of this type of practice, this type of transpierce will break our relationship or trust .

Regulator is working against the interest of IFAs and creating unhealthy environment. On one hand they want to increase participation from B15 locations on other hand they are killing sentiments of distributors. We pay tax on income earned (Service tax is mandatory even if someone earns less than minimum taxable slab). GoI and regulator should focus on broading the tax payee base instead of finding ways to wand off IFAs (Tax payer) and investors (tax payers). What will they achieve by this? - less interested IFAs - UnServiced clients - Mis- selling as happens in Insurance sector AMCs should come forward and defend interests if their distributors as their AUM PALACES are result of our hard work.

Even all amc should come out with clear stand on such issue. If such regulation needs to apply it should be across all financial services like insurance and other products also. It will create a picture that the income given to distributors is there complete profit and distributors do not have any cost of acquiring and servicing the client . Also such disclosure norms will encourage investor in self advising which is almost equivalent to self medication which may have more negative impact

Disclosing earning will decrease the level of service and interest taken by IFAs to cater long term clients - Mutual Fund industry will loose all its goodness and will become battle ground of SALES & pass backs instead of advisory.

Dear Mr Maloo, Thank you for your article. Very thought provoking and I agree with all the points raised by you. It is a fact that there has been a systematic double speak game that has been played by SEBI and AMFI and which is why it has become suspect as to what their main intention is. Is it on the bidding of the global wealth managers and the bank distributors that this is being rushed through - especially because of the income presures that they have been facing of late. What is also worrying is the studied silence of the IFA Associations in this matter. Keep the pressure on and lets see how many join.

MY all friend. do all of you know that when CA file your ITR government (income tax department) give them incentive as per tax slab and as per tax collection. apart from this whatever fees is charge by CA to client. why not government is disclosing to that also at our ITR file. transparency mean transparency,

Dear Malooji, You have said every thing what I wanted to post. I fully agree with you. Last year when Service tax imposed on us by the Govt. That time also I protested.Protesting together must have some value. But only protest will not work. Nobody is supreme in our democracy except the citizen. Even the government changes every after 5 years. Lets move legally and understand, can SEBI have the right to kill a community after taking their life long service in this industry? Let an arbitrator like SC take the decision.I am always with the move. If any thing can be done by me to strengthen the movement I am always there. But I do not have that much of contacts as well as leadership quality to lead the movement. Anybody who want to be the that, I shall support him/her fully.

I totatlly agree with you Sir & i am standing with you

This excellent article from Ramesh Chand Maloo has not come a day too soon not only for all of us in IFA community but also for all other stake holders including SEBI the regulator. Implied non violent model of confrontation as successfully employed by Mahatma Gandhi is the eminently suitable way forward. No sacrifice is too great in order to achieve a sensible solution to the festering problem which is slowly and surely threatening the existence of all IFAs. I volunteer to offer my service for the cause.

I totally agree with you Maloo ji. And am standing with you not just for a week or a month but until some fair decision is taken by SEBI.

I am fully agree with you sir.But we have no strong platform like Insurance. So what WEB I impose on us we just flow that.

Abhi jaldi Se UNITY kijiye, aur bataiye kya action lena hai, hum taiyaar hai. Clear Talk, Clear Action, No Gossip.

I am deeply pained and feeling dejected by the decision

Excellent write up maloo sir. Will SEBI ask irda to disclose the earning of insurance agents and the expences of eachcomoany. Insurance companies should also explain the foriegn trips for advisor and officers..

ABC analysis applies to opr distribution business also. HOW CAN WE SERVE REST 80% OF THE CUSTOMERS IF WE ARE NOT ABLE TO GET GOOD INCOME FROM THE 20% CUSTOMERS. The Amfi is run by representatives of the AMCs and are creating restrictive trade practices for their own pecuniary benefits . we should actively bycott all amc meetings.

I am too deeply pained and feeling rejected from our regulator and AMCs.

Well thought out and written.but it is going to be a trumpet blown into a deaf man`s ears as far as the regulator is concerned

Maloo ji very well said , straight from heart , very painful for everyone associated with this industry , high time regulator/amcs/distributors should come together & think for the future growth of this industry .

Let the sebi allow to print what money they have made in the invested amount along side of IFA. WY the heck only advisor earnings. Is it their birth right to earn money is justified(AMC). Why only advisor earnings. This SEBI in resetting the DISTRIBUTOR server button every three months with this the server (distributor) will certainly gets burnt. How much is the average earning of the productive advisor is making out of this. Today OLA or UBER driver is earning a LAC a month. There are no new distributors coming to market with less than 10K active advisors in the country this SEBI with out even having common sense bringing in / making rules in no mans land /deserted industry. After this GOVT coming in with lot of hopes we thought some good will happen. But SEBI and GOVT hammering on our head time again. God knows. I am simply fainted looking bad days rather good days.

With due respect I would like to say some one like you Must lead our community which is being exploited by regulator, AMC s .must justify to their industries base I.e. Distributor.

Strike is no option .....there is no sense of making strike...esp when people are interested to make u unemployed,.. ... .. Instead show ur strength by making more business in next 6 months to smaller AMC ...which can support us Say we can allocate 50000 cr like investment in next 6 months from new or existing AUM..... Refer discussion thread on same in wealthforum

Why mentioning the income is applicable in mutual fund ONLY? Why this rule is not applied to all others distributors, retailers and all another channels like Medicines, FMCG products and all others supply and distribution chains?

1. In service industry we cant denie to serve our investors. If we do so they will go DIRECT to AMCs or Banks. This will help SEBI in fulfilling their malafied intention. 2. Instead we should work harder to promot only those AMCs who support us and boycott the rest. This will show our real power and strength to all concerned. 3. We should take united action at all levels to get this decision stayed and ask the AMCs to support us. Boycott those AMCs who dont support. For getting stay, one important point may be: We get 80% business from 20% clients. This decision may favour these 20%, but rest 80% investors will not accept RIA model and will not get proper advice and planning. They will suffer from misselling by Bank/AMC and finally move out. This will finally reduce MF penetration. Rest may be shortlisted from many points raised by fellow IFAs.

RESPECTED IFA`s / dear colleagues, atleast 1-day. on 6TH APRIL 16, can we all make NON TRANSACTION DAY. (ur mouth & ALL electronic items) will be SILENT. IS POSSIBLE TO PARTICIPATE.

Earlier also impractical, useless, anti-Investor, anti-Productive, anti-MF Distribution & anti-MF Industry steps were taken by SEBI, so-called God & Protector of Investors especially Retail category. They think they are acting Smart, Perfect & full-proof. Then after some years, they realise what damage they have done to the Industry. By that time another Chief is heading SEBI. He cant be blamed for His Predecessors mistakes. Then He do some other Blunder to weaken the Industry.

When we buy any product in the market do we know distribution of the price that we pay for that product such as mfg. cost, marketing cost, distribution cost, taxes, profit made by the company, etc. Answer is no and as a buyer we are not much concerned about it as we look for the benefits of the product and value created for me. However, if we get these information then scenario would be different. Similarly, investors are buying regular plans but when they get the statement with commission cost the behaviour of investors would change. If SEBI go ahead with commission disclosures then sooner or the later investors can invest in direct stock market if they are so concern about cost as they will not prefer to pay 1.5-2% as overall expenses and MF industry will have to suffer as a whole. SEBI must consider the ground realities and rollback the commission disclosure as no other industries are doing such disclosure to consumers.

My suggestions are 1)That we form a all India association and hire a professional lawyer to fight for our cause 2) Get rid of part timers in the local association, people whose main business is not mutual fund 3) Boycott the large AMCs whose name had appeared to be supporting this act of the Regulator. Two of whom had assured me that such a thing will not happen. 4) I will feel honored to part with my one months brokerage for such a all India association

We must put united efforts to stop injustice to IFA community. Disclosing commission may start problem of kickbacks. Regulators decision to disclose commission in account statement is disatrous to us. If they want transperency then let thdm disclose all elements of expenses.

SEBI & AMFI are surely making big fools out of us simple MF distributors & we definitely need to unite & make a collective representation against these new regulations.

INVESTOR WILL BE INTERESTED , HOW MUCH MY ADVISOR MADE MONEY, RATHER THAN HE MADE A MONEY. BARGAINING WILL HAPPEN. IF WE TALK ABOUT LONG TERM INVESTMENT, CUSTOMER WILL THINK DIFFERENTLY

Dear Friend , We should stop selling MF in all the manners.like jewelers are doing these days .short term profits will lead to long term losses. it is over regulated industry now. sebi is now become a hitlor . by sitting in AC chambers they make all decisions . STOP SELLING FOR ATLEAST FOR ONE WEAK NO MUTUAL FUNDS

This industry is controlled and regulated by Inept people. Its a movie with good actors but an incompetent director and producer. Now even God cant save the distributors. We distributors should protest the way jewellers have done across the country. Or else these top top people will come up with something more crazy after this.

So nice narration of subject.............Hats off to u Sir. Many lesson to be learntfrom ur views.

I fully agree with your view. Sir, strongly agreed with your opinion and advice to stop the work for at least a week

This issue was Brought in Notice 2 months back when 3 Amc Supported Disclosure of IFA Brokerage, but that time no IFA had Raised there voice against First ask 3 why they had Supported Disclosure of Brokerage Sebi Suggestion. Its Now Urgency to Bycoat the Amc and ask them to Support us.

Disclose of Commission in statement will stop thr IFA business totally & will Increase the Pass back system. & Its a really major problem that must be Protest Pan India With unity in iFA fraternity

Very well said. You have said it all - on behalf of all IFAs in particular. Not only that we need to raise our voice, may be we will have to take help of some well learned & experienced lawyer, and need to knock the doors of "Justice" and demand for a separate regulator for MF industry where they will take care of all stakeholders needs in a more balanced way. to deb As SEBI has too many things to regulate and hence not able to devote sufficient quality time for MF industry and its stakeholders simultaneously.

complaint to competition commission of india CCI for unfair trade practices , where regulator is favoring something ,Large AMCs are silent as they will be big beneficiaries if life of small AMC and distributors is made difficult,,,,,3000 cr sip book is created by distributors now , if AMCs are not standing with you , then u must act for own benefit STrike is no option ......you are already thrown out of house in 2009 ,,,,but IFas realizing it now..........instead of strike........do business more go positively ........but choose smaller AMCs......Punish Large AMCs for not standing with you and back stabbing .......build strong competition in front of them GIVE AUM to smaller AMCS,,,,,prefer someone who comes openly ....against ruling

AMC s lobby is time and again back stabbing mutual fund distributors through the regulator . for this all AMC S are responsible & especially some large AMCs are main culprits , Let us stop putting any new business with these large AMc s with immediate efffect , then they will understand . its a pay back time. Let us do it .

Your views are genuine.If regulator wanted to stop mis selling ,it could have stopped 3 yrs closed ended equity nfo coming to market,for equity invesments are for long term and goal orienet as most of experts inAMC and regulator lecture very often. Since 2013 a lot of closd ended equity schemes flooded market.Who approved them?i think,distributors,amcs,investors and regulatos must sit togethr to find out a suitable solution,otherwise it is very difficult to face the present situation.

Thanks for putting all our hearts out in this article. I think the only way to get our voice heard is to take the help of some strong Opposition Leaders(Not sure if they will oblige us) or resort to Media help. We can arrange a discussion session with representatives from MOF, SEBI, AMFI and IFAs in a news channel. I think stopping the work for a week or even a month will not make any visible impact on them. If all think that it will do, no IFA should be reluctant as it will not affect any of us much.

My background is from a Bank and an AMC and since retirement , I have an ARN Card. (a) There are strong arguments favouring RIA model and even in UK and USA, this is the direction taken with many new initiatives being tried .(b) My suggestion is that SEBI should evangelise and propagate the value of RIAs. People in India do respond to such public authority propagation (c) Also, Indians do pay brokerage on real estate and rental deals.

We can ask AMC RM and marketing person to bring their salary slips when they meet us . lets show them to our clients. Let them know how much these people are getting paid for direct plan

We keep telling God to save us God only helps those who help themselves !! The Amfi is run by representatives of the AMCs and are creating restrictive trade practices for their own pecuniary benefits Why cannot we as IFAs file a complaint against them With the Commission for adopting unfair trade practices? If you all really want to protect your businesses, then vote for this. Collectively file a case against the AMFI and The SEBI for indulging in unfair trade practices Let the MCI also be ordered to disclose all the foreign trips and commissions being paid to doctors for prescribing certain medicines by companies Ask the Architect association the disclose what their members are given by way of commission by the plywood and the sanitary manufacturers. And this list is endless... I am all for lower commissions so that investments ar more cost effective and hence more rewarding But why just at my cost why shouldnt the AMC bear the cost too ??

EPF TAXATION ANNOUNCED IN BUDGET WAS ROLLED BACK , PRESSURE WAS CREATED FROM ALL POSSIBLE FORUM PM MODI HAD TO INTERVENE AND ROLL BACK HAPPENED SIMILAR IS EXPECTED FR MUTUAL FUND WE MUST ASK FOR LEGAL STAY FOR ALL SEBIS OVER REGULATION TILL GENUINE SRO ....THAT IS SELF REGULATING ORGANISATION ,,,,WHO WILL DECIDE ABOUT DIRECT PLAN DISCLOSURES ETC SRO IS ESSENTIAL ,,,, AS IT WILL HAVE REPRESENTATION FROM ALL STAKE HOLDERS .........DISTRIBUTORS MUST HAVE ROLE MAKING ANY REGULATORY DECISION

Comment part 3)......if distributor earning more than 10 lac in year are just 1200 ...which includes banks ND etc and rest almost 1 lac distributors are earning less than 10 lac.......and sebi is behind distributors........ Can 4-5 people decide fate of lacs of people because they regulator........can they spoil life time hard work of people . Regulator must have representation from all stake holders SRO is good answer for this SEBi is not needed in day to day micro regulation Even Govt gives disclosure through right of information ...it never discloses sensitive and voluntarily Why direct plans need no transparency Why direct plans need no exams Ask AMC s to come out clearly about it ... What are legal options available

Comment part 2)....today PSU banks are starving for capital....NPAs bad loans Corruption........if sebi was doing duty of regulator it was not possible......if we restrict to MF......if disclosure norms were strict about board activities AMC .......NAV of mutual funds had not suffered same is true for LIC .........it is duty of AMC .....and regulator.....today PSU banks have no money to lend .....private banks lend negligible to infra or priority sectors.........so no loan to infra ....no development... No employment....less tax collection .....high fiscal deficit....high inflation...high repo rate ...high NPA.....high bad loans .......economic slow down...........SEBI is directly responsible for this

Comment part 1..)...If disclosure is imp then ask disclosure in fact sheets about corporate activities of companies are attended by AMCs .......have u heard any AMC or LIC asking Mallyas lender banks ......about loans or recovery .. . . Lic is largest shareholder after govt in PSU banks ........if u have collected money from small investor and investing in company .....is it not necessary to disclose what actions are taken from AMCs .....if u check % in voting vis-à-vis board decisions of invested companies...... AMCs hardly participate in board meeting or voting......let me know which disclosure is more imp ....participation in board activities or poor IFA s commission

Though I am from the city which at one point of time was infamous for Dharnas, I dont think we should talk about redeeming, striking etc. These all led to create negative picture of our fraternity. Whose money it is? Can we redeem investors money if its not good for him/her?Who has given us the right?

Very well articulated Maloo sir . I also believe that we need to stand up together now to do something to save this industry as well as our livelihood . This step is detrimental and will spook the whole penetration and vision of Sabka Saath Sabka VIKAS . We should be fighting against this like jwellers standing together . Most of us are still not united and see only the short term benefits . Lets plan a course of action and fight against is this time for sure, lets be together friends..

SEBI discriminat Mutual Funds Advisors and they discourage mutual funds advisors in the name of transperancy. SEBI dont know ground reality of Mutual Funsa Advisors facing every day problems.

SEBI in the name of transparency is firm on destroying the MF distribution since long. All the steps and decision taken in the name of betterment is going against us.. Soon after our earning reflects in SOA the INVESTOR shall have problem with us that even in case of negative return, the distributor has earned. This will create gap between us. The AMC shall get ready delicious food the day the investor would migrate to "DIRECT" with good volume. ALL the IFAs are requested to find out a way to go for one week non logging of business in whole of country against the dictating way of regulator.

WOW Maloo ji,I wonder why werent you a writer? NOBODY could have written it better. In 2009 when entry load was abolished AMCs explained us the virtues of going all trail forget upfront, then came direct and we were explained virtues of being hand holders of clients and every AMC went out of their way to convince us that they are with the distributors but we all know what happened in AMFI and SEBI meetings. We have been back stabbed by the very guys we have been working for. And now we are being stabbed in front directly by the regulator. MAny trainers and senior distributors(RIAs now) explained to us virtues of adding X SIPs into X years and showed us rosy all trailmodels, all has come to a big fat ZERO. ONLY the big fish will survive and we all know the regulator CANNOT even touch the big fish let alone regulate them. NO amount of coming together signing petitions etc is going to work. The writing is on the wall, those who refuse to see it are doing so at their own risk.

Most RIAs also get IFA fees and they will shut down business if they have to stop this. Only large AMCs will have the reach to increase folios and small boutique AMCs with great schemes will suffer, if distribution is stopped The intention to push funds through online Flipkart like websites may olny lead to mis purchasing

Let the regulator try on sample basis this intelligent exercise on direct plans first, then come here. After gaining experience discuss with us. How intelligent they are.

Very well said sir.... Regulators & AMCs are taking us for granted. Lets have a month long strike in such a manner, so that it create some impact on the industry. May be by not enrolling new clients during this period or may be diverting the funds from MF to AIF or some other possible option. We urge everyone to be united & help to create impact. Regulators & AMC will start thinking on the same line, only if AUM start eroding.

Sir, I am agreed with you.Could you please suggest some common words that we could send to FM & other competent authorities.

All points are consider very well...I feel Regulator and interested parties have a hidden moto behind all this...when investors are on Direct mode...how they get advice...in India very few percent of people understand importance of Fee base advice...cost of fund management is very much Important but other than cost lot of other things like performance, quality of portfolio, fund management still, Risk with fund etc. are every investors understand is a big question. Are Regulator thinking on this..understanding of Mutual fund product is not Everyones cup of tea. Regulator just pushing only one agenda..with out looking side effects of there design.

Tough I am new to this profession, I feel this article is written with utmost honesty about true welfare of this fraternity. The sincerity and pain of the writer on the decision of disclosure of commission have been put forth in a candid manner. The reality of peoples mindset is also brought out very clearly which is a glaring contrast to what REGULATOR thinks. In fact, our feelings are very clearly put forth by the writer in a language that conveys lot to regulators.

Very well written Maloo Ji!! I am also pained the way the things are shaping up and instead of putting our efforts into creating more retail space, we are now forced to save our existing businesses.

But the actual mis-sellers are the AMCs and bank, is perfect. The much awaited unity of IFAs is still not in sight. That would have been the first step before doing anything else. Second is to just ask the regulators their final wish. Third is to be ready for any shock and ready for resettlement of life by IFAs. Start working with another regulator like IRDA etc. or start something completely different. Do not worry about the investors because the regulator is capable of doing that.

Sir , strongly agreed with your opinion and advice to stop the work for atleast a week . I am assuring you that I " ll talk to the all distributors in our district and definetly taking the step against the decision taken about new statement in oct 16. Regards.

I fully agree with your view. I urged to be united for betterment in the industry.

Wonderful. You are bang on target. 95% of RIAs are having the ARN code in their family member name and do business. The regulator should come up with a rule that RIA should not route the business in their family members name. One of a RIA charges good amount of fees to his client and do the business in family members code. Will regularly authority hold responsible for this loss to the ultimate investor. Also RIA join hand with AMC too on various issues. Actually RIA concept is not implemented properly by the regulator.

We should start protesting from Today and start taking action Let us stop business till 31-3-16 . Start redeeming the debt funds till 31-3-16.Start writing letters to local AMC offices,Regional Offices, Zonal Offices and Corporate offices and condemn this decision. We should bring pressure from all levels.

The poor IFA has formed the base for the regulator and others to build their castles. If this becomes mandatory let all the cost involved in mutual fund investment too be declared on the CAS like the AMC fee, R&T fee, Broker Fee, Mandatory Regulator fee etc. Why should they be avoided. Lets all the expenses be made known to the client.

The investor is concerned with the total expenses charged by the AMC and not the details of the expenses of the payment made to the CEO or peon or who so ever. The investor neither have control nor interested to know the detailed expenses. The declaration of total expenses will make the investor in a better position to select the fund and AMC. We shall represent this to the concerned authority and even can move a representation from our investors and send the same to the authority.

The commission disclosure process effects investor of village where mutual fund is not known.They can not change their saving into investment. so they cannot fulfill their future need properly and ruin their wealth in unhealthy investment.If SEBI want to improve healthy investment for needy people reconsider about this.If a person did not benefit so he can not spend even one penny for this and distributor can not help without money.

Create a Core Committee . Take signatures of IFAs all India and submit it to AMFI, FMO office and thats it.. At the same time totally stop the business of MFs immediately ..for min 3 mths Let us suffer now for our future existance

WHY SEBI IS BAHVING LIKE THIS.DID THEY KNOW THAT THIS MONEY of BROKERAGE IS NOT A FREE MEAL,IT IS OF GUIDANCE ,EXECUTION & SUPPORT VALUE GIVEN BY US TO CUSTOMERS, WE DO NOT SELL JUST LIKE A FACTORY PRODUCT .AS A PHARMA COMPANY CAN NOT SELL DIRECTLY TO THE PATIENT THAT THIS DRUG WILL BE CHEAPER DO NOT GO TO PHYSICIAN & CONSULT,THIS WILL DAMAGE INVESTORS CONFIDENCE IN MUTUAL FUNDS WHEN THEY WILL KNOW SIDE EFFECTS LATER ON.

thanks for the write up..But what is agenda ? We have no option to bear brunt ? Are we going to do something about this or are we proposing for ideas ? Let us stop working for one full month all India and lets see impact

why SEBI not allowing us to buy stocks with out stockbrokers why this all stockbroker need. those who are sitting in offices in mumbai making decession on us, please come out and sell even one sip a in B15 or rural india,

SEBI will do what they wanted to do. But we need more people to serve the investor, but only few are joining this profession. Regulator knows the reasons. We get so many calls for selling the product from several people. Need of the hour is only RIAs/AMFI REGISTERED/IRDA REGISTERED person only can contact the end user(Investor). SEBI should check whether every branch of a bank or broker is having registered person to recommend. In last 60 years LIC established agents in every village. Only 2% of the LIC agents are making big commission. Out of 1 lakh IFAs how many are getting Rs.10 lakh pa. In an government office after 10 years of service, clerk or peon is receiving more than Rs.4 lakh pa.

sebi, amfi amcs, ria are acting with iron fist to decimate the IFAs identity. first service tax, fatca rules commission cap and now final nail in coffin is distribution structure. no where a person who is earning asked to disclose his earning disbursal. only wise indulges in every aspect as if no alternative extension possibles without understanding that human psychology. while ifas facing so many humilities and submitting and just eking his life, he is being hammered day in and day out by the above- god bless lest wisdom dawn on the above

It is very much clear from SEBIs action that they are interested to bring RIA module in India. They have also come to conclusion that penetration of Mutual fund in India is complete. Indian Investor is educated enough. If they are clear in their mind on this subject my sugesstion would be 1) Stop all commissions upfront/trail to distributor. so that once for all this issue will get solved we will not wakeup in the morning what will happen today? 2) If they want distributor to continue they should officialy allow kick backs because no investor would like to pay distributor even if his investment is generating minus returns. Once you allow kickbacks those can be accounted as expenses. 3) Now onward commission structure should be broken into two i.e. rack rate and incentive because if some Mutual funds are paying more to a distributor than the base rate then it is for his overall business and not for business from partcular clent. that will help us to explain the client.

Why sebi is acting in silly manner, No one knows. When our 20 % investor who gives 80% of business will definitely ask for share from our commission as it happens in LIC where many of the agents share first quarter premium indirectly. Only god will save us