How can we get hold of the axe and through it back?

AMFIS AIM MAXIMISE DIRECT BUSINESS ELIMINATE THE IFA

Matured thought in immature market. With short span of 3 + years existence in this industry , seen and interacted with so called educated class- who are not aware of investments in mutual fund. Many from related industry do not know, how MF differs from direct equity. Agents play positive and negative role in placing the product in market. Unfortunately, regulator while trying to eradicate small percentage of Negative role of agent, killing both agent and Industry growth. Wish so called wise use their wiseness in right direction.

Comment part 3)......if distributor earning more than 10 lac in year are just 1200 ...which includes banks ND etc and rest almost 1 lac distributors are earning less than 10 lac.......and sebi is behind distributors........ Can 4-5 people decide fate of lacs of people because they regulator........can they spoil life time hard work of people . Regulator must have representation from all stake holders SRO is good answer for this SEBi is not needed in day to day micro regulation Even Govt gives disclosure through right of information ...it never discloses sensitive and voluntarily Why direct plans need no transparency Why direct plans need no exams Ask AMC s to come out clearly about it ... What are legal options available

Comment part 2)....today PSU banks are starving for capital....NPAs bad loans Corruption........if sebi was doing duty of regulator it was not possible......if we restrict to MF......if disclosure norms were strict about board activities AMC .......NAV of mutual funds had not suffered same is true for LIC .........it is duty of AMC .....and regulator.....today PSU banks have no money to lend .....private banks lend negligible to infra or priority sectors.........so no loan to infra ....no development... No employment....less tax collection .....high fiscal deficit....high inflation...high repo rate ...high NPA.....high bad loans .......economic slow down...........SEBI is directly responsible for this

Comment part 1..)...If disclosure is imp then ask disclosure in fact sheets about corporate activities of companies are attended by AMCs .......have u heard any AMC or LIC asking Mallyas lender banks ......about loans or recovery .. . . Lic is largest shareholder after govt in PSU banks ........if u have collected money from small investor and investing in company .....is it not necessary to disclose what actions are taken from AMCs .....if u check % in voting vis-à-vis board decisions of invested companies...... AMCs hardly participate in board meeting or voting......let me know which disclosure is more imp ....participation in board activities or poor IFA s commission

IFAs either will either definitely loose their remuneration either by the way of commission payback against the law or negotialte for lesser fees as in a advisor model in T-15 cities. And the rest will either struggle for survival or leave the industry...yes they are given 6 months to shift to other businesses with blood in their eyes! Thanks to the new Regulation! MD Vijays s views reveal the real picture..

Such a Dictorial Undemocratic move! With this move, Trial model will get a big blow. It becomes hard for SIPs and longterm investments. And to think of Advisor model in rest of T-15 cities is suicide. Also, this decision will definitely pave way to negotiations to passback of commissions as gainst the law. At the end, this what happens to the people, the IFA community, after completing their studies desired to take up self-employment in a country where there is huge unemployment problem, due to the people on top, the regulator, who hardly konw the ground realities, lack in understanding about their fellow countrymen, his culture and behaviours, prematurely decide to go copy a model of other Rich and Developed countries, relevant or irrelavant, ignoring every others(in the industry) opinioin and views. What a country we live in!

WORTH READING.COMMISSION DISCLOSURE MUST BE EXTENDED TO ACROOS ALL PRODUCTS SUCH AS INSURANCE ETC,OTHERWISE MAKE IT TOTALLY FEE BASED.GOOD SCHEMES,GOOD AMCS AND GOOD ADVISORS WILL STAY IN THE FIELD,

Achi bat

in continuation with my below post... AMc should give their clear point wise view for the points raised by Mr vijay in this article and responded by other advisors. iF AMC SUPPORTING THE STAND OF THE SEBI, WE SHOULD DECIDE THAT TO WHOM WE SHOULD CONVINCE FIRST? SEBI OR AMC.

Thanks Mr vijay for explaining the issue in detail. As per my view in last couple of year all the advisors have worked very hard and put SIP in place. Now perhaps sebi misunderstands that MF business BECAME pulling business FROM pushing business and hence perhaps sideline the efforts of advisors. I do agree with concluding remarkS that there should be some logic behind disclosure norms. it is very well said that compare investors checklist and experts checklist for the items to be disclosed to make investor well informed and then take decision. My personal request to mr Vijay or any other competent authority that pl take view of all the AMC ON THE ISSUE AND POST HERE. Before we decide our line of action it is equally important to take views of AMC and see whether we have any alignment in thinking with them or not?

And to think of it ALL Amcs were preaching to us virtues of Going full trail after the entry load ban. Great now suffer the consequences of FULL TRAIL. Where are all those trainers who were wanting to teach us virtues of adding 100 SIPS every year for 10 years and expect 1 crore in trail after X no of years, where are they, what are they saying?????

http://www.wealthforumezine.net/ForumComments.aspx?id=1524

YES..one way to escape is to inf our investors in advance that we r being paid 0.5% fees on yr assets as retainer of business ..Even if it is big or more than his installment in absolute terms--explain him as %..its universal practice..if you buy a small item-vendor shall get less and vice versa..if you buy in more quantity also-vendor gets more..nothing new..forget absolute figs--play with %..make it simple..and 0.5% is perhaps low margin..never consider as high..

Its a bad idea. That too only in mf industry this is being disclosed. Why not all regulators asks to disclose to all retail invoices disclose the commission paid to them. Salaries paid to Govt officers for services they offer. Taxes paid verses salaries paid.This commission disclosure norm should be scrapped. Mr. Sinha has got 6 months extension as sebi chief. Lets see new sebi chief sees it off

unable to understand the real purpose behind such move..First-what ever being paid to us is not fr investors money directly..its from TER that is permitted by SEBI itself..So want to control commision,reduce TER. Second--disclose only first yr comission..becas as said here--it will create bad impact in mind of investor where his SIP is much older as trail may exceed his installment amt... third--also disclose world wide practice of paying min 0.5% of asests as fees to advisor ..this shall satisfy their anger..we r not paid more than this...Ref to other extra--its universal and being practised by all...so no problem..But to show on individual statement is very difficult..May not b justified..

Dear Mr Vijay, thanks for an elaborate positive arguing content posted by you... Could you please suggest we all IFAs the recourse as how to address our voice to regulators ? Simply posting our views and just grumbling that this is not an appropriate step intiatted.. Why not you suggest line of action to all our IFAs individually as well as collectively throught their associations come ahead and make some impact... thanks Kartik Dadia

Disclose commission all bankers, All types of shop they selling products,Insurance brokers, Strong lobby big brokers for example - India infoline, Angel,relegare.,Can this possible? Sebi only target only IFA Finesh, Vanish. All Old person in Sebi They not think properly. THEY WORK ONLY SALARY no work for national people. Also AMC Stop the mf business so what rules they sebi complesory? AND INDIAN MARKET CRASH? I THINK SEBI NOT SUPPORT INDIA GROWTH They decided market fall and FI goes? HIDING AGEND OF SEBI ?

IFA must prepare themselves to exit the industry at any moment and find out other businesses which can be run without the regulator. One can still work ethically, honestly and earn respectable money out of the same rather than worrying every second about the regulations and risk of being ousted from the industry in favour of some sections of the industry. Let them do what they want to. The only idea which I have been suggesting through such forums and which has been articulated by Mr. Nilesh Shah is to corporatise IFAs and fight the menace seems to be having some hope.

This is last nail to ur coffin.Western markets are matured and mfs have penetrated fully in those countries.This is detrimental to mf industry in india.NPS is good example where ifas were kept away,it could not penetrate effectively in retail. Why not approach to PM against sebi?

already the market is shrinking with the iron hand of the regulator indulging in every aspect as if no other business is being attended. they blame the tabla in spite of the dancers inefficiency of conducting on the stage. the scenario is becoming for bad to worse for this people. while the regulator needs to appreciate the efforts done by the small IFAS who have commendably thwarted the market volatility in the recent history as against the natures fury, external threats of poor off take, low morale of the people. god bless - sadbhavana

i dont know why MF industry is treated as stepson all rules and regulations for us and whereas insurance industry there is no disclosure of commision all though they are earning 35 % no service tax on thier commision no direct and indirect plan . We dont have any issue if you make compulsary for all the industries to disclose their earning from sebi chairman to car manufacturing company ,

Time to resist / confront was in August of 2009. Its no use crying over spilled milk. . . May be too late now.

??It is better to disclose like this in all. ?First implement in Government it self. Display Salary boards in front of every govt office. Profits on cigarette pockets, wine bottles etc.. ?We at MF Industry are really working for a very nominal margins, and MF is the only product where the customer gets correct investment with high transparency. ?Still I am unable to understand why regulators are continuously trying to kill this Industry? ?1. Due to discount brokers in stock market investors wealth washed out - Regulators wants to do the same in MF Industry too? ?2. Due to Bankers mis-sellings Insurance policies - large number of policies are lapsed. Customers money going to Brokers and Insurance companies pockets. ?Try to servy on one thing that # 80 %The Insurance and Investment products sold by Institutions are by obligation with out any knowledge to client/ MIS selling are not?? Try to save the Industry and Investor Dont kill by MIS guiding..

Dear folks The advisors who r in the business actively last 7 to 8 years hv cn this kind of threat first direct came then compulsory no entry load came then change of broker code came like this we hv been slowly adjusting ourselves to the new environment it will be difficult only in the initial phase also for the new range of distributors who came recently to adapt to the new threat , leave it those clients who believe u will still be there with you those who feared for no entry load and left are the losers those who remained in the industry are earning much higher than the entry load times. Till now we all had a party now it is a bad time we hv to wait. I have a good friend who always told me when the IT bubble happened the world thought the industry is gone look now what happened even during that period there were the porn sites who made money in the same industry. Now leave this try to concentrate more on ur business

First u go direct plan, can stop broking houses all clients go direct NSE platform, Kaya himat ahi broking lobby stop karun client trading NSE lab karel and broking houses che garden nahi. Sir sinha stop that rules its harmful for industry. We all ifa stop business and withdraw all money in mutual funds that time u r eyes open my dear sir, Small ifa family on road. All family death then all market u acquired u . We all ifa force fully redemption all money in mutual Fund and market crash that time Mr sinha & Govt. Eyes open. Only ifa support that falling market through Sip. So why that aniya. I go fashion if that rules not change.

Bella Figura.Years of front loading/back loading are over. Karma caught up. Tongue firmly in cheek there is a larger number of folks available to be kidnapped , law suits and of course the vicarious pleasure of knowing who made how much - HA,HA! Hunter Squadron at the NDA had their war cry when the going gets tough- The Hunters get going. Hopefully this is the end of more regulation and we can plan our lives, we have teams who have to be paid a salary every month. Distributors are perennial optimists or is this the end ??

SEBI simply does not want dedicated IFAs to work anymore.Rather by only trying to impress the retail customer who is not at all keen to know what we earn is going to fund it difficult to get good advise.IFAs should send a petition immediately Why doesnt SEBI apply this same rule to Postal agents, Doctors, Medicine Shops, Real estate brokers who take 1-2% in cash, Salaries of all sectors ..Are we supposed to keep industry alive with already wafer thin brokerages or continue to be hammered by regulator as it is .Why doesnt SEBI give a recommendation to govt to close IFAs rather than keep on ridiculing them