Single SRO for MF distributors
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Indian Mutual Fund
Jun 26, 2013, 1:33:51 AM6/26/13
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Single
SRO for MF distributors
In its Board meeting yesterday, SEBI decided to approve a single SRO for MF distributors. Here is the extract from SEBI's press release : "The Board approved the proposal to have single SRO for Distributors of Mutual Fund Products after following a fair and transparent procedure. Further, in order to facilitate the recognition of single SRO for Distributors of Mutual Fund Products and to avoid delay, it has been decided to have a cut off time for accepting applications for being recognized as SRO." AMFI has already applied and has been advised by SEBI to constitute the Sec 25 company which AMFI proposes as the SRO and then submit the application from that entity. AMFI is in the process of doing this and is expected to file the revised application shortly. Meanwhile, FPSB - Financial Planning Standards Board is also engaged in discussions with SEBI on promoting the SRO. It however appears that FPSB is more keen on promoting an "umbrella" SRO which would encompass self regulation of intermediaries across all financial products rather than confine it to a single product of mutual funds. Given that SEBI has currently asked for the SRO to be set up only for MF distributors, it remains to be seen how keen FPSB may be in promoting a single product oriented SRO. Meanwhile, the idea of having multiple SROs for different distribution segments within MF distributors is now clearly buried, after this decision from SEBI. As it stands now, it appears that the entity that will be promoted by AMFI may be the front-runner in the race to set up this SRO. In any event, regardless of who the promoting entity may be, SEBI will have 5 of its nominees on the 9 member Board and 4 directors will be from the industry. SEBI will therefore be able to exercise its due influence in critical aspects of the SRO, through its Board majority. - Wealth Forum News
http://www.wealthforumezine.net/InnerDailyUpdates.aspx?sec=Industry
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___________________________________________________________________________________
'I made my money by selling too soon.'
Website: http://indianmutualfund.co.cc/
Blog:http://indianmutualfund.wordpress.com/
___________________________________________________________________________________
In its Board meeting yesterday, SEBI decided to approve a single SRO for MF distributors. Here is the extract from SEBI's press release : "The Board approved the proposal to have single SRO for Distributors of Mutual Fund Products after following a fair and transparent procedure. Further, in order to facilitate the recognition of single SRO for Distributors of Mutual Fund Products and to avoid delay, it has been decided to have a cut off time for accepting applications for being recognized as SRO." AMFI has already applied and has been advised by SEBI to constitute the Sec 25 company which AMFI proposes as the SRO and then submit the application from that entity. AMFI is in the process of doing this and is expected to file the revised application shortly. Meanwhile, FPSB - Financial Planning Standards Board is also engaged in discussions with SEBI on promoting the SRO. It however appears that FPSB is more keen on promoting an "umbrella" SRO which would encompass self regulation of intermediaries across all financial products rather than confine it to a single product of mutual funds. Given that SEBI has currently asked for the SRO to be set up only for MF distributors, it remains to be seen how keen FPSB may be in promoting a single product oriented SRO. Meanwhile, the idea of having multiple SROs for different distribution segments within MF distributors is now clearly buried, after this decision from SEBI. As it stands now, it appears that the entity that will be promoted by AMFI may be the front-runner in the race to set up this SRO. In any event, regardless of who the promoting entity may be, SEBI will have 5 of its nominees on the 9 member Board and 4 directors will be from the industry. SEBI will therefore be able to exercise its due influence in critical aspects of the SRO, through its Board majority. - Wealth Forum News
http://www.wealthforumezine.net/InnerDailyUpdates.aspx?sec=Industry
--
___________________________________________________________________________________
'I made my money by selling too soon.'
Website: http://indianmutualfund.co.cc/
Blog:http://indianmutualfund.wordpress.com/
___________________________________________________________________________________
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