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If an RIA model (with fee only) is to be implemented I am sure many distributors will shut shop. Small distributors will be the first to go. Even many large distributors (those having large number of small SIP clients) will quit too. Almost all distributors are lured with the prospect of a steadily growing commission on back of growing number of clients And growth in AUM due to rising markets. The fee only model is definitely not a good idea.
Will reiterate Mr. Srikanth Kulkarnis question pertaining to charging of upfront commission.This is more relevant because of its raison d atre post August 2009 point of view when it came into force.Yet no body, even CEOs of biggest AMCs, are able to clarify it.
This should be done at earliest ..............but what about high commission product like Insurance Business ?
Excellent insights from each one. Thanks to WF for publishing this.
Please clarify: 1) Can a mutual fund distributor continue his insurance business, in parallel, without registering as RIA. 2) If a distributor is having only mutual fund as his profession, can he still continue charging upfront commission/fee for the service rendered, as printed in the applications. Any person above may clarify this please.