Reliance Mutual Fund sent me an AMFI circular issued on 10-04-13 on ARN renewal.
It is indeed shocking that AMFI has not only ignored the long standing request of IFAs i.e. there should be a provision for AMFI to get the passing certificate/CPE certification directly from NISM, instead of asking IFAs to submit the same, once ARN is renewed provisionally based on ARN exam marks list, but also effectively reduced the ARN renewal window to Four and half moths (from the earlier window of 6 months).
Let me explain this with an example, If an IFA takes the NISM exam and based on the marks list applies for the renewal of ARN on the same day itself:
If it is assumed that CAMS renews the ARN provisionally based on the marks list and sends the ARN card along with the “forwarding letter” in 15 days, as per the new circular we have to submit the NISM passing certificate within 2 months from the date of this “forwarding letter” failing which ARN will be suspended.
Circular is not clear on what happens to the business done during this suspension period.
Does anyone know for sure that NISM will send the certificate within two and half months from the date of exam? We don’t have any control over it, have we?
If, even after two months after suspension NISM pass certificate is not submitted ARN will be “terminated”. Meaning all the commissions will become void and we will be back to “zero”.
Once again, does anyone know for sure that NISM will send the certificate within four and half months from the date of exam? We don’t have any control over it, have we?
Another troubling thing in the circular is we have to submit the “NISM Pass certificate within 2 months from the date of forwarding letter” lest our ARN would be suspended. We know how efficient CAMS is.
The question that “What if AMFI prints the ARN card and forwarding letter but forgets to post them (intentionally- when it wants to settle scores with IFAs who point out its in-efficiencies & unintentionally in its own inefficient manner)?”
The big flaw in the circular is that by giving importance to date of the “forwarding letter” rather than to the “date of receipt” by the IFA, it is creating an avenue for both fund houses and CAMS to pressurize/punish IFAs.
The main fallout is, we will still be suffering for the inefficiency of other like NISM/CAMS or even courier/postal guys.
The basic question that we all have raised i.e. why should we pay for the inefficiencies of others, still remains un-answered.
Why should ARN renewal be this complex?
Request you take these issues up with AMFI and get these deficiencies eliminated for the sake of IFA community.
Thanking you Sir,
With Best Regards,
It is indeed shocking that AMFI has not only ignored the long standing request of IFAs i.e. there should be a provision for AMFI to get the passing certificate/CPE certification directly from NISM, instead of asking IFAs to submit the same, once ARN is renewed provisionally based on ARN exam marks list, but also effectively reduced the ARN renewal window to Four and half moths (from the earlier window of 6 months).
Let me explain this with an example, If an IFA takes the NISM exam and based on the marks list applies for the renewal of ARN on the same day itself:
If it is assumed that CAMS renews the ARN provisionally based on the marks list and sends the ARN card along with the “forwarding letter” in 15 days, as per the new circular we have to submit the NISM passing certificate within 2 months from the date of this “forwarding letter” failing which ARN will be suspended.
Circular is not clear on what happens to the business done during this suspension period.
Does anyone know for sure that NISM will send the certificate within two and half months from the date of exam? We don’t have any control over it, have we?
If, even after two months after suspension NISM pass certificate is not submitted ARN will be “terminated”. Meaning all the commissions will become void and we will be back to “zero”.
Once again, does anyone know for sure that NISM will send the certificate within four and half months from the date of exam? We don’t have any control over it, have we?
Another troubling thing in the circular is we have to submit the “NISM Pass certificate within 2 months from the date of forwarding letter” lest our ARN would be suspended. We know how efficient CAMS is.
The question that “What if AMFI prints the ARN card and forwarding letter but forgets to post them (intentionally- when it wants to settle scores with IFAs who point out its in-efficiencies & unintentionally in its own inefficient manner)?”
The big flaw in the circular is that by giving importance to date of the “forwarding letter” rather than to the “date of receipt” by the IFA, it is creating an avenue for both fund houses and CAMS to pressurize/punish IFAs.
The main fallout is, we will still be suffering for the inefficiency of other like NISM/CAMS or even courier/postal guys.
The basic question that we all have raised i.e. why should we pay for the inefficiencies of others, still remains un-answered.
Why should ARN renewal be this complex?
Request you take these issues up with AMFI and get these deficiencies eliminated for the sake of IFA community.
Thanking you Sir,
With Best Regards,
CHILUKURI K R L RAO, B.E.,
ARN-70974
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