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AMFI REGISTERED MUTUAL FUND ADVISORS (ARMFA)
 

Intermediaries play a pivotal and valuable role in promoting sale of Mutual Funds. It is therefore vital that those engaged in selling Mutual Funds have the highest standards of knowledge attitude and ethics. Their well being, quality orientation and ways of doing business will have a significant impact on how the Mutual Fund Industry develops in the future.

AMFI introduced the process to register the intermediaries who have passed the certification test as AMFI Registered Mutual Fund Advisors (ARMFA), thus laying the foundation for an organized industry and allotting a unique code-AMFI Registration Number (ARN) along with an identity card. SEBI recognizing the importance of this initiative taken by AMFI had made Registration with AMFI after passing AMFI Certification Test compulsory for intermediaries. SEBI has clarified that after obtaining certification from NISM as per changed mandate, the requirement of registration with AMFI, in terms of its circular dated November 28, 2002 would continue.

As such, all AMFI/ NISM Certified Intermediaries engaged in marketing and selling of Mutual Fund schemes are required to be registered with AMFI after passing AMFI/ NISM Certification Test. The Mutual Funds will not be able to deal with intermediaries who are not registered with AMFI and obtained ARN.

In terms of SEBI Circular dated September 13, 2012, “AMFI shall create a unique identity number of the employee/ relationship manager/ sales person of the distributor interacting with the investor for the sale of mutual fund products, in addition to the AMFI Registration Number (ARN) of the distributor. The application form for mutual fund schemes shall have provision for disclosing the unique identity number of such sales personnel along with the ARN of the distributor.”

EMPLOYEES OF ARMFA

In terms above mentioned notification and SEBI circulars, employees/ relationship manager/ sales person of ARN holders who are engaged in marketing of Mutual Funds Products, are also required to pass test and register with AMFI, under ARN of the employer.

AMFI, has allotted Employee Unique Identity Number (EUIN) to all the employees, who are registered with AMFI and having valid registration. A photo identity card bearing EUIN is also being issued to the existing corporate employees after they surrender existing corporate employee ARN card issued to them.

The employees would be henceforth issued EUIN card containing EUIN, name, photo and validity period of EUIN.

The said EUIN is required to be mentioned on the Mutual Fund scheme application forms with effect from January 1, 2013.

EUIN issued to the employees would remain same, even if they change their employment and join some other ARN holder for selling/ marketing Mutual Fund products. However, for effecting such change in AMFI’s records, the employees are required to submit duly filled in form for mapping EUIN as stated here under.

The employees are required to fill up the form for mapping EUIN in the following scenarios and submit the duly filled in and signed form to CAMS along with required documents.

  1. To dissociate from present ARN mapping for doing own business.
  2. To change the EUIN mapping from present ARN to another ARN (in case of change of employment)
  3. To cancel EUIN.
AMFI Registration Number (ARN) : SALIENT FEATURES
The AMFI Registration Number (ARN) has been introduced as the unique code, which identifies the intermediary as ARMFA.

  • ARN is a unique number allotted to:

    1. Individual agents, brokers, and other intermediaries engaged in selling Mutual Funds, having passed the AMFI/NISM Certification Test and senior citizens having attended Continuing Professional Education (CPE) and agreeing to abide by the code of conduct and other undertakings as mentioned in the application form.
    2. Corporates engaged in the business of selling Mutual Funds, which apply to AMFI and agree to abide by the code of conduct and other undertakings as mentioned in the application form.
  • A photo identity card bearing unique ARN, address, his/ her name, photo and the validity period of ARN, would be issued to individual applicants and senior citizens whereas Certificate of Registration bearing unique ARN, name of the corporate and the validity period of ARN would be issued to Corporate applicants.
  • Employees would be issued EUIN card with their EUIN, his/ her name, photo and validity period of EUIN.
  • The application for registration of corporate bodies should compulsorily be accompanied by the application for registration of corporate employee.
  • Passing certificate issued by National Institute of Securities Market (NISM) in respect of 'NISM - Series V-A : Mutual Fund Distribution Examination' has validity period of three years. Also, the CPE certificate issued by NISM is valid for three years.

    Accordingly, ARN issued to individual, senior citizens and EUIN issued to employees against such certificates shall have validity period from the date of submission of ARN registration application up to the validity date mentioned on the passing certificate/ CPE certificate, if the application is in order. In case of corporate entities, validity period for Certificate of Registration issued is 3 years.
  • No distributor shall hold more than one ARN card/ Certificate of Registration
  • After obtaining ARN, the intermediaries should approach the AMCs for empanelment and they can canvass Mutual Fund business of the respective AMCs only after empanelling with them.
  • Registered intermediaries can be de-registered as the ultimate censure, for the following reasons:
    1. Violation of the code of conduct.
    2. Being indicted for serious offences by a Regulatory Authority/ Judicial Authority.
    3. Complaints of gross negligence upheld by a consumer court.
AMFI Guidelines & Norms for Intermediaries ("AGNI")
In order to promote best practices and ethical standards in the business of sale of Mutual Fund schemes, AMFI has formulated broad guidelines and norms including a code of conduct for the intermediaries, which will be applicable to ARMFA.

AMFI believes that a sincere endeavor to adhere to the guidelines and the code would help promote best and healthy practices in the area of sales and marketing which would ultimately benefit all concerned - the investor, the intermediary and the industry as a whole.

PROCEDURE FOR OBTAINING REGISTRATION
AMFI has authorized M/s Computer Age Management Services Pvt. Ltd. (CAMS) to act as processing agent on its behalf for the purpose of ARN.

For registering with AMFI, Intermediaries are required to apply in the prescribed form. The form can be obtained from the office of AMFI or any office of CAMS. Alternatively the form can also be downloaded from AMFI's website www.amfiindia.com

Application forms must be submitted along with KYD acknowledgement or along with KYD application form in person, in case KYD process is not completed, to the office of CAMS (CAMS-POS). The details of fees and documents required to be submitted in respect of various categories of intermediaries is indicated in the below mentioned table:-

Entity Required Documents Additional requirement ARN Registration Fees
Banks (Other than those specified below) Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 4,00,000
Regional Rural Banks, District Central Co-Op. Banks Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 1,00,000
Non Banking Finance Company (NBFC) Copy of Certificate of Registration issued by RBI, Copy of Articles/ Memorandum of Association, Copy of Board Resolution, List of Authorized Signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 1,00,000
Public Ltd. Co. Memorandum and Articles of Association, Copy of Board Resolution & List of Authorized signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 4,00,000
Pvt. Ltd. Co. Memorandum and Articles of Association, Copy of Board Resolution & List of Authorized signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 40,000
Limited Liability Partnership (LLP)
  1. @@ Declaration as mentioned below
  2. Certificate of Incorporation of LLP (in form 16)
  3. Copy of LLP Agreement
  4. Name, address and PAN details of the Designated Partners.
  5. Name, address and PAN details of other partners (other than the Designated Partners)
  6. Other persons authorized to act on behalf of the LLP.
AMFI/ NISM Certified & AMFI Registered Corporate Employee. 40,000
Partnership Firm @@ Declaration as mentioned below, Partnership Deed & List of Authorized signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 20,000
Urban Co-Op. Banks, Societies, Trusts, HUFs Copy of license issued by RBI, Copy of Board Resolution & List of Authorized signatories with Specimen signature

Society by-laws, copy of certificate issued by Registrar of Societies & list of Authorized signatories with Specimen signature

Trust deed, copy of Certificate of Registration & List of trustees with Specimen signature

@@ Declaration as mentioned below, HUF deed and Name of Karta & Authorized person with Specimen signature
AMFI/ NISM Certified & AMFI Registered Corporate Employee. 20,000
Post Offices List of Authorized signatories with Specimen signature AMFI/ NISM Certified & AMFI Registered Corporate Employee. 15,000
Micro Finance Institution The relevant documents as may be applicable as stated above, depending on the category under which the Micro Finance Institution is incorporated viz. Society, Trust, Company, NBFC, etc. and the document evidencing that the entity is a Micro Finance Institution AMFI/ NISM Certified & AMFI Registered Corporate Employee. 15,000
Proprietorship Firms Self Declaration for Proprietorship firm **

AMFI/ NISM Certified & AMFI Registered Proprietor/ Employee

3,000
Individuals Copy of AMFI/ NISM passing Certificate/NISM Mark Sheet **

** Self attested copy of mark-sheet containing candidate’s photo and PAN is accepted up to two months from date of exam. Thereafter one has to submit a self attested copy of passing certificate along with the application.
Two stamp size photographs 3,000
Senior Citizens Criteria to apply for allotment of ARN under this category :
  1. A person who has attained age of 50 years as on May 31, 2010 OR
  2. A person who has at least 10 years experience in the securities market as on May 31, 2010 AND/ OR
  3. A person who has at least 10 years experience in distribution of Mutual Fund Products as on May 31, 2010
Any individual satisfying any of the above mentioned criteria is eligible to register himself as ARN holder under senior citizen category.
  1. Proof of age : Any of the following documents :
    - Birth Certificate
    - School Leaving Certificate
    - Passport
    - Driving License
    - Identity card issued by Election Commission of India, which contains date of birth
  2. Copy of CPE certificate
  3. Certificate from a member AMC (Mutual Fund) certifying that he/she has worked for Ten years as mutual fund distributor/agent as on May 31, 2010. AND/ OR
  4. Certificate from a Stock Exchange/ member of Stock Exchange, certifying that he/she has experience of Ten years in the securities market as on May 31, 2010.
Two stamp size photographs 3,000
New Cadre of Distributors as defined in SEBI Circular dated September 13, 2012 and as notified by AMFI Please click here for details 1,500


Corporate Employees As per Grid Below
No of Corporate Employees Fees per Employee (Rs.)
First 100 Employees 3,000
* Incremental 101 to 200th Employees 2,000
* Incremental 201 to 500th Employees 1,000
* Incremental above 500th Employees 500
*
  1. Corporate employees 'per employee fee structure' is applicable incrementally. For example: if an organization has 150 employees and they want to register all the employees with AMFI, it will cost them (Rs.3,000/- x 100) + (Rs.2,000/- x 50) = Rs.4,00,000/-. Distributors with existing Corporate employee registration to get benefit of incremental cost reductions.
  2. The quantum of Incremental benefit will also be determined based on the number of valid employees registration as on the date of receipt of application for registering additional employees of the company. For example: If company has already registered 100 employees and submitted application for additional 50 employees, however, from the record it is observed that out of 100 employees registered earlier, in case of 25 employees, ARN validity has been expired then incremental benefit will be restricted to 25 new applications out of application received for 50 employees.
  3. Along with the application for additional registration of employees, company should also give confirmation in writing that all the employees registered earlier are continuing with them and have a valid ARN card as of the date of application.
  4. If the fees are paid as per the graded fee structure available for registration of incremental employees (above 100 employees), the undertaking in the corporate employee application form must be duly filled in and signed by the Authorized Signatory with Company stamp. If the said undertaking is not filled in and signed, such corporate employee application form is liable to be rejected.


The prescribed fees can be paid only by demand draft in favour of the "Association of Mutual Funds in India" payable at the location of the CAMS office (CAMS-POS) to which the form is submitted.


** Self Declaration by Proprietorship firm

"I hereby declare that
i) I, ______________________ am the sole proprietor of the Proprietorship Firm _______________________________ and I am myself engaged in selling and marketing Mutual Fund Products.
ii) I am not engaged in selling and marketing Mutual Fund Products and employed Mr./ Ms. _____________________________________ (attach a list in case there are more employees) for selling/ marketing Mutual Fund products on behalf of the Proprietorship Firm, for which form for registration as corporate employee is submitted herewith.

Tick whichever of the above i) and ii) is applicable.

I hereby undertake that all the persons who are engaged in selling and marketing Mutual Fund Products are AMFI/NISM Certified and registered/ shall pass NISM Mutual Fund Distributors Certification Examination and Register with AMFI before canvassing the mutual fund business. I confirm that my firm will carry on canvassing of business for products of Mutual Funds in accordance with Guidelines and Norms for Intermediaries (AGNI) including Code of Conduct prescribed by SEBI/ AMFI and any rules and Regulations that may be framed or amended by SEBI/ AMFI from time to time."


@@ Declaration by Partnership Firm/ LLP/ HUF,
where Partnership Firm/ LLP and HUF as a corporate entity apply for registration without passing AMFI/NISM Certification Test by any partner/ Karta of HUF, but along with application for registration of their employee who is AMFI/NISM Certified, the declaration / undertaking as under should be furnished along with application:

"I/We hereby declare that I, Karta of HUF/ any of the partners am/ is not engaged in the activity of selling/ marketing of Mutual Fund schemes and all such activities are carried out only by the persons employed who are AMFI/NISM Certified.

I/We further undertake that all our employees who are engaged in sales and marketing Mutual Fund schemes shall be AMFI/ NISM certified and obtain registration with AMFI before engaging in the activity of selling/ marketing of Mutual Fund schemes.

I/We also hereby undertake to pass NISM Certification Test and obtain registration with AMFI as when I, Karta of HUF/ any partner decides to engage in sales and marketing of Mutual Fund schemes in future."

The documents shall be scrutinized and if found in order and if the prescribed fees have been realized, a certificate of registration or photo identity card, as may be applicable shall be issued. These will be mailed directly to the applicant.

Fees payable for issuing duplicate ARN Card/ Certificate of Registration

Fees payable for obtaining duplicate ARN card due to change of name, address, ARN card lost, etc. in case of individuals/senior citizens is Rs. 1000/-.

Fees payable for obtaining duplicate EUIN card due to change of name/ EUIN card lost, etc. in case of corporate employees is Rs. 1000/-

Fees payable for issue of duplicate Certificate of Registration in case corporates is Rs. 5000/-

Fees payable for issue of Certificate of Registration to Corporates (existing ARN Holders) due to change in name/ change of status
  • Change in name without change in status : Rs.10,000/-
  • Change in name due to change in status : the fees payable would be higher of

  • (i) Rs.10,000/- and
    (ii) the differential fee, if the change in status is from a category charged with lower registration fee to a category charged with higher registration fee.
 
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