AMFI ARN Registration Process

DREAM TO START YOUR MUTUAL FUND BUSINESS? BECOME A PARTNER TODAY …

A Partner (an intermediary) plays key in promoting sales of Mutual Fund products. In addition to increasing the sales for Mutual Fund products, a Partner advices investors on investment decisions according to the amount of risk an investor is willing to take – a reason to have the highest degree of ethics and knowledge.

Securities and Exchange Board of India (SEBI) and Association of Mutual Funds in India (AMFI) have made it mandatory to obtain a Mutual Fund certification to enhance the quality of sales, and related support services in the Mutual Fund industry.

National Institute of Securities Markets (NISM) Certification:

An examination conducted by NISM. You will obtain the certification after passing this exam. The examination consists of 100 questions of 1 mark each and the duration is 2 hours. The passing score for the examination is 50%. There is no negative marking.

Importance of the NISM certification:

  • Knowledge on basic fundamentals of Mutual Funds, structure of AMC’s, various schemes /plans with their key features, etc.
  • How to develop a long term sustainable relationships with the investors?
  • How to carry out financial planning on prospective clients?
  • How to sell Mutual Fund products in the market?

It is mandatory for all individuals who would like to start their own business of selling and marketing Mutual Fund schemes to pass the NISM Certification examination called ‘NISM Series - V (A): Mutual Fund Distributors Certification Examination.’


PROCESS FOR THE AMFI REGISTRATION NUMBER (ARN)

  • The AMFI Registration Number (ARN) has been introduced as the unique code, which identifies the intermediary as ARMFA
  • Minimum age for obtaining ARN is 18 years.
  • ARN is a unique number allotted to:
    • Individual agents, brokers, and other intermediaries engaged in selling Mutual Funds, having passed the NISM Certification Test and senior citizens having attended Continuing Professional Education (CPE) and agreeing to abide by the code of conduct and other undertakings as mentioned in the application form.
    • Corporates engaged in the business of selling Mutual Funds, which apply to AMFI and agree to abide by the code of conduct and other undertakings as mentioned in the application form.
    • A photo identity card bearing unique ARN, address, his/ her name, photo and the validity period of ARN, would be issued to individual applicants and senior citizens whereas Letter of Registration bearing unique ARN, name of the corporate and the validity period of ARN would be issued to Corporate applicants.
    • Employees would be issued EUIN card with their EUIN, his/ her name, photo and validity period of EUIN.
    • The application for registration of corporate bodies should compulsorily be accompanied by the application for registration of corporate employee.
    • Passing certificate issued by National Institute of Securities Market (NISM) in respect of ''NISM - Series V-A: Mutual Fund Distribution Examination'' has validity period of three years.
    • Also, the CPE certificate issued by NISM is valid for three years.
    • Accordingly, ARN issued to individual, senior citizens and EUIN issued to employees against such certificates shall have validity period from the date of submission of ARN registration application up to the validity date mentioned on the passing certificate/ CPE certificate, if the application is in order.
  • In case of corporate entities, validity period for Letter of Registration issued is 3 years.
  • No Partner shall hold more than one ARN card/ Letter of Registration
  • After obtaining ARN, the intermediaries should approach the AMCs for empanelment and they can canvass Mutual Fund business of the respective AMCs only after empanelling with them.
  • Registered intermediaries can be de-registered as the ultimate censure, for the following reasons:
    • Violation of the code of conduct.
    • Being indicted for serious offences by a Regulatory Authority/ Judicial Authority.
    • Complaints of gross negligence upheld by a consumer court.

AMFI Guidelines & Norms for Intermediaries ("AGNI")

In order to promote best practices and ethical standards in the business of sale of Mutual Fund schemes, AMFI has formulated broad guidelines and norms including a code of conduct for the intermediaries, which will be applicable to ARMFA.

AMFI believes that a sincere endeavor to adhere to the guidelines and the code would help promote best and healthy practices in the area of sales and marketing which would ultimately benefit all concerned - the investor, the intermediary and the industry as a whole.

To know more click: https://www.amfiindia.com/distributor-corner/become-mutual-fund-distributor


DOCUMENTS REQUIRED FOR REGISTERING WITH AMC’s

  1. Registration / empanelment form, provided by the Mutual Fund house
  2. A cancelled cheque
  3. Copy of PAN Card
  4. Copy of AMFI Certificate
  5. ARN Card