AMFI Guidance on MFD Nomenclature

AMFI Guidance on MFD Nomenclature

AMFI GUIDANCE ON MFD NOMENCLATURE

(Pursuant to Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013)

1. BACKGROUND

As per Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013 notified on July 3, 2020 –

No person, while dealing in distribution of securities, shall use the nomenclature “Independent Financial Adviser or IFA or Wealth Adviser or any other similar name” unless registered with SEBI as an Investment Adviser

 

Pursuant to the above regulatory amendment, mutual fund distributors (MFDs) whose registered name has the terms such as Adviser / Advisor / Financial Adviser/ Investment Adviser/ Wealth Adviser/Wealth Manager/Wealth Managers etc. are required get their registered name changed. 

 

SEBI has also clarified that – 

  1. The name of an MFD should reflect the registration held by the entity and should not in any way create an impression of performing a role for which the entity is not registered. Thus, every MFD, while dealing in distribution of securities, should clearly specify that he /she is acting as a MFD.
  2. 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 i.e. website, mobile app, printed or electronic materials, business card, sign board etc.
  3. The timeline for making application to RoC for change in name has been extended from October 15,2020 to October 31, 2020. The same timelines will apply for MFDs established as proprietary/partnership firms.

       

2. LIST OF   PERMISSIBLE / NON-PERMISSIBLE NAMES

Since the aforesaid regulation covers a wide range of ‘other similar names/ terms’ that may not be permissible, AMFI has been receiving requests from MFDs for providing guidance as to which names/terms are allowed. 

 

In this regard, AMFI has drawn up a list of names as per Annexure, which in AMFI’s view, are permissible / acceptable, as well as list of names/ terms that are not permissible, for broad guidance of the MFDs.    

 

MFDs are advised to make sure that their name is in line with the above list. 

 

However, it may please be noted that the lists are only illustrative and not exhaustive. If the proposed name of any MFD is not included in the aforesaid list of permissible / non-permissible names, write  to AMFI via email to contact@amfiindia.com 

 

3. MANDATORY TAGLINE TO BE MENTIONED BY MFDs WITH THEIR NAME

 

As mentioned above, SEBI has also advised that MFD should display their name and tagline in a clear and legible font in all forms of communication i.e. website, mobile app, printed or electronic materials, business card, sign board etc.  

 

In this regard, all MFDs are advised to mention/display a  tagline, “AMFI-registered Mutual Fund Distributor”  along with / below  their name, in a clear and legible font of at least font size 12, in all forms of printed communication,  so as to ensure compliance with the above requirement.  

 

You are requested to take note of the contents of this circular for due compliance.

 

With Regards,

 

Sincerely,

 

Sd/-

N. S. Venkatesh Chief Executive      

 

ANNEXURE 

 

LIST OF   ACCEPTABLE & NON-PERMISSIBLE NAMES

 

Sr. No.

Acceptable Names

1

XYZ Asset

2

XYZ Asset Distribution

3

XYZ Asset services

4

XYZ Capital

5

XYZ Capital distribution

6

XYZ Capital Services

7

XYZ Edge Distribution

8

XYZ Edge Investment

9

XYZ Enterprises 

10

XYZ Fin

11

XYZ Finance/ Financial

12

XYZ Financial Distribution 

13

XYZ Financial Investment 

14

XYZ Financial Services

15

XYZ Finmart

16

XYZ Finserve / Finserv

17

XYZ Finvest

18

XYZ Fundmart/ Fundsmart

19

XYZ Invest

20

XYZ investmart

21

XYZ Investment Services

22

XYZ Investments

23

XYZ Investor Services

24

XYZ Investor Shoppee

25

XYZ Ltd. / XYZ LLP 

26

XYZ MF services

27

XYZ Money

28

XYZ Money services

29

XYZ Moneymart

30

XYZ Mutual Fund Distribution/ Mutual Fund Distributors

31

XYZ Mutual fund services

32

XYZ Partners 

33

XYZ Prime Distributors / Distribution

34

XYZ Prime Investment/s

35

XYZ Prime Wealth

36

XYZ Securities

37

XYZ Securities Distribution

38

XYZ Services

39

XYZ Wealth

 

Sr.No.

Not acceptable Names

1

XYZ Adviser/Advisor

2

XYZ Advisory Services

3

XYZ Capital Adviser

4

XYZ Capital Management

5

XYZ Consultancy Services

6

XYZ Consultants 

7

XYZ Consulting

8

XYZ Corporate Advisory

9

XYZ Financial Consultancy

10

XYZ Financial Consultancy Services

11

XYZ Financial Consultant/s

12

XYZ Financial Consulting

13

XYZ Financial Planner/s

14

XYZ Financial Planning 

15

XYZ Financial Solutions

16

XYZ FinPlan

17

XYZ Finsol

18

XYZ Finsolutions

19

XYZ Fund Adviser

20

XYZ IFA

21

XYZ Independent Financial Adviser

22

XYZ Investment  Consulting 

23

XYZ Investment Adviser

24

XYZ Investment Consultancy

25

XYZ Investment Consultancy Services

26

XYZ Investment Consultant/s

27

XYZ Investment Manager/s

28

XYZ Investment Planners

29

XYZ Investment Solutions

30

XYZ Money Manager

31

XYZ Multi Wealth Investments

32

XYZ Planner/s

33

XYZ Solution(s)

34

XYZ Wealth Adviser/s or Wealth Advisor/s

35

XYZ Wealth Advisory

36

XYZ Wealth Advisory Services

37

XYZ Wealth Care 

38

XYZ Wealth Chanakya 

39

XYZ Wealth Consultancy 

39

XYZ Wealth Consultants

40

XYZ Wealth Consulting

41

XYZ Wealth Creator/s 

42

XYZ Wealth Express

43

XYZ Wealth Investments

44

XYZ Wealth Mall

45

XYZ Wealth Management

46

XYZ Wealth Manager

47

XYZ Wealth Planner

48

XYZ Wealth Plus

49

XYZ Wealth Services

50

XYZ Wealth Solution/s

51

XYZ Wealth Vision

52

XYZ Wealth Yantra

 
   

 


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