After the notification of the SEBI Investment Adviser (Amendment) Regulations, 2020 on 3rd July, 2020, the Association of Mutual Funds in India (“AMFI”) has issued guidance regarding nomenclature to be used by Registered Mutual Fund Distributor.

As per the said Regulations, no distributor shall use the nomenclature “Independent Financial Adviser or IFA or Wealth Adviser or any other similar name”.

Since, there was lot of confusion regarding ‘similar name’, so AMFI has come up with the list of names which are permissible and not permissible.

So, the existing mutual fund distributor who have similar names shall apply for changing its name before 31st October, 2020 as the AMFI has extended the timeline for changing the name from 15th October, 2020 to 31st October, 2020.

If still any mutual fund distributor has any doubt pertaining to its name, then he/she can write to AMFI via email to contact@amfiindia.com

Further, AMFI has specified that registered Mutual Fund Distributor shall clearly specify that he/she is acting as a MFD and shall also mention the following tagline, “AMFI-registered Mutual Fund Distributor” with their name.

The name and tagline shall be mentioned/displayed in all forms of communication i.e. website, mobile app, printed or electronic materials, business card, sign board etc. in a clear and legible font of at least font size 12.

Text of the AMFI Guidance on MFD Nomenclature is as follows:-

AMFI GUIDANCE ON MFD NOMENCLATURE

(Pursuant to Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013

BACKGROUND

As per Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013 notified on July 3, 2020 –

No person, while dealing in distribution of securities, shall use the nomenclature “Independent Financial Adviser or IFA or Wealth Adviser or any other similar name” unless registered with SEBI as an Investment Adviser.

Pursuant to the above regulatory amendment, mutual fund distributors (MFDs) whose registered name has the terms such as Adviser / Advisor / Financial Adviser/ Investment Adviser/ Wealth Adviser/Wealth Manager/Wealth Managers etc. are required get their registered name changed.

SEBI has also clarified that –

a. The name of an MFD should reflect the registration held by the entity and should not in any way create an impression of performing a role for which the entity is not registered. Thus, every MFD, while dealing in distribution of securities, should clearly specify that he /she is acting as a MFD.

b. MFD’s Name and Tagline, should be placed together in a clear and legible font size. The same disclosure should be followed in all forms of communication i.e. website, mobile app, printed or electronic materials, business card, sign board etc.

c. The timeline for making application to RoC for change in name has been extended from October 15,2020 to October 31, 2020. The same timelines will apply for MFDs established as proprietary/partnership firms.

LIST OF PERMISSIBLE / NON-PERMISSIBLE NAMES

Since the aforesaid regulation covers a wide range of ‘other similar names/ terms’ that may not be permissible, AMFI has been receiving requests from MFDs for providing guidance as to which names/terms are allowed.

In this regard, AMFI has drawn up a list of names as per Annexure, which in AMFI’s view, are permissible / acceptable, as well as list of names/ terms that are not permissible, for broad guidance of the MFDs.

MFDs are advised to make sure that their name is in line with the above list.

However, it may please be noted that the lists are only illustrative and not exhaustive. If the proposed name of any MFD is not included in the aforesaid list of permissible / non-permissible names, the concerned MFD may write to AMFI via email to contact@amfiindia.com

3. MANDATORY TAGLINE TO BE MENTIONED BY MFDs WITH THEIR NAME

As mentioned above, SEBI has also advised that MFD should display their name and tagline in a clear and legible font in all forms of communication i.e. website, mobile app, printed or electronic materials, business card, sign board etc.

In this regard, all MFDs are advised to mention/display a tagline, “AMFI-registered Mutual Fund Distributor” alongwith / below their name, in a clear and legible font of atleast font size 12, in all forms of printed communication so as to ensure compliance with the above requirement.

*******

ANNEXURE

LIST OF ACCEPTABLE & NON-PERMISSIBLE NAMES

Sr. No. Acceptable Names
1 XYZ Asset
2 XYZ Asset Distribution
3 XYZ Asset services
4 XYZ Capital
5 XYZ Capital distribution
6 XYZ Capital Services
7 XYZ Edge Distribution
8 XYZ Edge Investment
9 XYZ Enterprises
10 XYZ Fin
11 XYZ Finance! Financial
12 XYZ Financial Distribution
13 XYZ Financial Investment
14 XYZ Financial Services
15 XYZ Finmart
16 XYZ Finserve ! Finserv
17 XYZ Finvest
18 XYZ Fundmart! Fundsmart
19 XYZ Invest
20 XYZ investmart
21 XYZ Investment Services
22 XYZ Investments
23 XYZ Investor Services
24 XYZ Investor Shoppee
25 XYZ Ltd. ! XYZ LLP
26 XYZ MF services
27 XYZ Money
28 XYZ Money services
29 XYZ Moneymart
30 XYZ Mutual Fund Distribution! Mutual Fund Distributors
31 XYZ Mutual fund services
32 XYZ Partners
33 XYZ Prime Distributors ! Distribution
34 XYZ Prime Investment!s
35 XYZ Prime Wealth
36 XYZ Securities
37 XYZ Securities Distribution
38 XYZ Services
39 XYZ Wealth

Sr.No. Not acceptable Names
1 XYZ Adviser/Advisor
2 XYZ Advisory Services
3 XYZ Capital Adviser
4 XYZ Capital Management
5 XYZ Consultancy Services
6 XYZ Consultants
7 XYZ Consulting
8 XYZ Corporate Advisory
9 XYZ Financial Consultancy
10 XYZ Financial Consultancy Services
11 XYZ Financial Consultant/s
12 XYZ Financial Consulting
13 XYZ Financial Planner/s
14 XYZ Financial Planning
15 XYZ Financial Solutions
16 XYZ FinPlan
17 XYZ Finsol
18 XYZ Finsolutions
19 XYZ Fund Adviser
20 XYZ IFA
21 XYZ Independent Financial Adviser
22 XYZ Investment Consulting
23 XYZ Investment Adviser
24 XYZ Investment Consultancy
25 XYZ Investment Consultancy Services
26 XYZ Investment Consultant/s
27 XYZ Investment Manager/s
28 XYZ Investment Planners
29 XYZ Investment Solutions
30 XYZ Money Manager
31 XYZ Multi Wealth Investments
32 XYZ Planner/s
33 XYZ Solution(s)
34 XYZ Wealth Adviser/s or Wealth Advisor/s
35 XYZ Wealth Advisory
36 XYZ Wealth Advisory Services
37 XYZ Wealth Care
38 XYZ Wealth Chanakya
39 XYZ Wealth Consultancy
39 XYZ Wealth Consultants
40 XYZ Wealth Consulting
41 XYZ Wealth Creator/s
42 XYZ Wealth Express
43 XYZ Wealth Investments
44 XYZ Wealth Mall
45 XYZ Wealth Management
46 XYZ Wealth Manager
47 XYZ Wealth Planner
48 XYZ Wealth Plus
49 XYZ Wealth Services
50 XYZ Wealth Solution/s
51 XYZ Wealth Vision
52 XYZ Wealth Yantra

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