Several MF distributors may have to go for name change after Amfi diktat

Amfi has barred them from using nomenclatures that have references to advisors, following Sebi move to separate distribution and advisory for the Rs 27-trillion industry

Several mutual fund (MF) distributors may have to get themselves rechristened. Industry body Association of Mutual Funds in India (Amfi) barred distributors from using nomenclature that has references to advisors. The move follows the decision taken by market regulator Sebi to bifurcate distribution and advisory for the Rs 27-trillion MF industry.

“Pursuant to the regulatory amendment, mutual fund distributors whose registered name has the terms such as Adviser / Advisor / Financial Adviser/ Investment Adviser/ Wealth Adviser/Wealth Manager/Wealth Managers etc. are required get their registered name changed,”Amfi said in a circular.

The industry body issued a non-exhaustive list of names that are permitted and prohibited for entities acting as MF distributors.

“The name of an MF distributors. 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 distributors, while dealing in distribution of securities, should clearly specify that he /she is acting as a MF distributors,”Amfi has said.

The industry body has also prescribed font size for MF distributors that has to be followed in n all forms of communication such as  website, mobile app, business card and signboards.