It has been decided by AMFI to introduce Know Your Distributor (KYD) for Mutual Fund Distributors with effect from September 1, 2010, which would be similar to that of Know Your Client (KYC) for investors, requiring the distributors to submit mandatorily identity proof, address proof, PAN and bank account details with proof. It is also decided to introduce bio-metrics as a part of KYD process.
To start with, KYD norms will be applicable for fresh ARN registration and ARN renewal effective from September 1, 2010. The existing ARN holders would also be required to comply with KYD norms within 6 months i.e. by end of February 2011, failing which AMCs shall suspend payment of commission till the distributors comply with the requirements.
CAMS will be initially providing KYD facilities at 60 Point of Services (POS) which is expandable to more centers, if required. CAMS has also agreed to provide this facility on temporary basis at places other than these POS if requested by us and if the number of distributors are not less than 50.The details of POS shall be uploaded on AMFI Website as well as on the website of CAMS shortly.
The KYD process is free of cost for the distributors.
Why:
Securities and Exchange Board of India (SEBI) has advised AMFI to review the existing registration procedure for Mutual Fund Distributors and initiate necessary action to strengthen the same to ensure correctness of information furnished in the registration application and also to have in person verification of the ARN holders.
AMFI has therefore decided to introduce Know Your Distributor (KYD) process for the Mutual Fund distributors with effect from September 1, 2010. The KYD procedure consists of document verification and Bio-metric process. The distributor is therefore required to apply for KYD simultaneously alongwith application for registration of ARN. Please click here for detailed process note and KYD application form for
Source: Amfi india
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