Agenda: To
discuss various service issues faced by Investors and
Distributors.
Date: February 09,
2013
Venue: Senate Hotel,
Cochin
Participating AMCs &
RTAs
1. AXIS
2. BIRLA SUNLIFE
3. CANARA ROBECO
4. DSP BR
5. FRANKLIN TEMPLETON
6. HDFC
7. ICICI PRUDENTIAL
8. IDFC
9. KOTAK
10. PRINCIPAL PNB
11. RELIANCE
12. SBI
13. SUNDARAM
14. TATA
15. UTI
RTA's
1. CAMS
2. KARVY
A total of 32 people from all AMCs &
RTAs represented their organization for extending their support for this group
discussion. 30 Members from AKIFAA Team participated in the discussion. It was a
grand success as far as participation and feedbacks are concerned.
A 3 member team from Karvy, Hyderabad and a 2 member CAMS team from
Cochin, were able to answer many queries raised by the IFA
fraternity.
Following were the topics
discussed;
ü Redemption / Rejection Status not being
informed to IFAs.
Solution:
Get the
mobile numbers/email ids of IFAs registered to get daily rejection SMS and
e-mails. The RTA teams will help to track this rigorously and fix the issues
raised, if any.
What action is required from AMCs Operations
Heads & R & Ts
There has to be some solution to the
above important issue which is painful at times when the client is in urgent
need of funds in an emergency. Should explore how this issue can be overcome by
taking additional safeguards to minimize
the risk by contacting clients as well as the IFA concerned to release the
funds.
ü Bank mandate change rejection
-
Rejected Documents
not returned to the investor/distributor.
Karvy replied that they
have explained to their teams to ensure that bank change requests are not
rejected unless there is a vital document missing. Also, they will place the
required list of documents in their site for easy reference of the
IFAs.
CAMS – need to get
clarity
AMC – Operations Heads – Please revert with
your inputs to overcome the above issue
ü
Brokerage
Credits on Time ( Cut off by 10th of every month)
R & Ts & AMC Operations Heads are
requested to give top priority basis to credit Brokerages by the 10th
of every month.
Even in the Month of Jan 2013 many of the
Brokerage credit got delayed beyond 15th of Jan 2013 This is another
pain area which needs immediate attention
ü NIGO (Not in Good Order) report to be
sent by all AMCs/RTAs (Few of them follow this practice)
KARVY has a facility to
get the rejection reports as below
o Process rejections: processed
rejections will be part of MFSD201
o Preprocessed rejection : preprocessed
rejections can be downloaded from MFSD: 236
o Pending process transactions: pending
transactions report can be downloaded from MFSD 241.
Also they have discussed the feasibility
of online validation of rejections but considering the current process mechanism
the same is not possible it seems, as the processing and rejections, if any take
place during night, hence they send the SMS / E-mail for rejection on T+1 or max
by T+2.
ü Possibility of Online transaction
verification by AMC Ops./Distributors in order to avoid
rejections.
Advise taken by CAMS & KARVY.
Practical implementation is yet to be verified with central
team
From AKIFAA end we would inform all our
members to register their Email ID's with KARVY & CAMS so that they get NIGO
information on time.
AMC – Operations Heads – Request ALL AMCs to
implement this as a standard procedure through their respective R & T's so
that the NIGO information reaches IFAs on time to take
further action on the NIGO
ü Business Snapshot for the
month
(Already Reliance MF
is doing this)
This was specific development for
Reliance based on their requirement. KARVY has promised to check with other AMCs
to implement the same. They will keep us posted on the happenings.
AMC's in consultation with their Respective
R & T's can generate a similar report. Reliance Business Snapshots can be a
reference point
ü Brokerage calculation
–demystified.
For brokerage calculation specific
queries KARVY promised, they will coordinate with their brokerage SMEs and
provide the required clarification. They have promised to plan for a training
for all IFAs in this regard.
AMC Operational Heads – in consultation with
their respective R&Ts can implement this at various locations in Kerala. To
inform AKIFAA well in advance when this can be arranged
so that they can co-ordinate in ensuring all
IFA's attend the training session.
ü KYC registration challenges
:
As discussed during the meeting, KARVY
& CAMS will take up the KYC related issues with AMFI / SEBI when they meet
them. Their central regulatory team will get the information from AMFI / SEBI
and the same will be communicated to us periodically.
R&Ts & AMC Ops team should take this
matter to SEBI / AMFI during their regular interactions with them. This is
another critical area which needs an immediate solution & intervention for
the growth of MF industry.
ü Nomination facilities for
IFAs.
KARVY team said that they will take up
this issue with AMFI and also with AMC during suitable forums and update us on
the status. This is currently a grey area.
AMC Heads / R & T's – should appraise
AMFI/ SEBI on this issue during their regular interactions. The IFA Fraternity
too would take up this issue with SEBI / AMFI
On the following points R & T's &
AMC ops may revert to us with their feedback
ü Escalation
points/Emails
KARVY has circulated the escalation
points/email ids to raise queries relating to transactions
ü Mismatch in value of redemption
proceeds
There were serious errors in processing
some of the redemption proceeds. Both CAMS/KARVY has promised to take up with
respective AMCs and get those issues rectified at the earliest.
ü SIP renewals – multiple debits/ improper
collection.
This error happened because of change in
RBI MICR codes in certain locations. A practical solution is yet to found to
avoid such mistakes in future. CAMS/KARVY yet to respond.
ü Delay in communication from CAMS/KARVY
side
– depending on
normal post/couriers with minimum reach - Suggested alternative – do it through
Speed Post
KARVY has also informed their AMCs to
confirm on the possibility of using speed post instead of Blue Dart courier.
They will keep us posted with the status.
ü Technology/Others:
Suggestion of introducing mobile
application to capture the data from image: KARVY have taken up with their IT
team to understand the specifications. They will coordinate and try to implement
this feature for all AMCs.
We hope that all these issues will be
appraised to the decision making authorities at appropriate forums. Hope and
pray that these issues discussed & suggestions provided will be implemented
in the coming days. We are planning for a follow up session in May / June 2013
to review the progress.
Suggestions to our IFA friends/ AKIFAA
members:
Ø Minimize calls to AMCs and RTAs during
peak business /closing times (during 2.45 p.m. to 3.15 p.m.)- this may help
reduce the chance of human errors as they will be busy time stamping and
processing the transactions (Very urgent cases may be taken up with the Branch
RMs, as they will be in a position to provide support without disturbing the
operations person.)
Ø Fill the application form in full before
submitting it to the AMC or RTAs. As this will help reduce errors and lot of
confusions later.
Ø Provide all supporting documents
together as providing different documents at different times will create
confusions and may lead to misplacing of certain documents
Ø Use good/polite language in times of
distress as arrogance will not help in solving a problem. But a co-ordinated
effort from distributor’s side will help the operation person to correctly
understand the issue.
Ø Even if they are not the reason/ cause
of the problem, they will help you in solving it.
After all, this is a service industry
which requires professionalism to practice and lots of patience to run and
survive. Let us help each other to survive and thrive.
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