Mutual fund distributors can’t be named ‘advisers’: Amfi

MUMBAI: To align

mutual fund distributors

(MFDs) with the recent

Sebi

rules to strictly segregate the distribution business from

investment advisory

,

mutual fund

trade body

Amfi

has barred MFDs from using ‘advisers’ and some other related terms in their company and brand names.


The decision has been taken to help retail investors differentiate between MFDs and financial and

investment advisers

.

On July 3, Sebi had barred people dealing in securities distribution from using the nomenclature “independent financial adviser or

IFA

or

wealth adviser

or other similar name” unless registered with Sebi as an investment adviser.

“Pursuant to the above regulatory amendment, MFDs whose registered name has terms such as adviser, advisor, financial adviser, investment adviser, wealth adviser, wealth manager, wealth managers, etc are required get their registered name changed,” Amfi said in a circular.