Mutual fund distributors may need to rename firms after Amfi order

Several mutual fund (MF) distributors might have to get themselves rechristened because industry body Association of Mutual Funds in India (Amfi) has barred distributors from using nomenclature that has references to advisors. The move follows the decision taken by markets regulator Securities and Exchange Board of India (Sebi) to separate distribution and advisory functions in the MF industry.

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

Amfi issued a non-exhaustive list of