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.