The Association of Mutual Funds in India (AMFI) has released a list of 39 permissible and 52 non-permissible names for mutual fund distributors (MFDs). It has directed distributors follow the SEBI diktat banning the use of nomenclature such as ‘independent financial advisor’ (IFA) and ‘wealth advisor’, unless registered with SEBI as such.
SEBI has amended the Investment Advisor Regulations, prohibiting the use of words such as advisor, IFA, wealth advisor and ‘similar names’ by MFDs from October. The amendment was proposed in February and enacted in July. However, the implementation of the amendment was deferred to October at the request of MFDs.
An MFD’s name should reflect the registration it holds, and not in any way create the impression of performing a role for which the entity is not registered, said the AMFI.
The MFD’s name and tagline should be placed together in a clear and legible font size.
The same disclosure should be followed in all forms of communication, including website, mobile app, printed or electronic materials, business card and sign board, it said.
The deadline for corporates that need Registrar of Company nod for name change has been extended to the month-end from October 15. The same timelines will apply for MFDs set up as proprietary/partnership firms, said the AMFI.