Recently I came across a newsitem which said " The Securities and Exchange Board of India, or Sebi, is planning to tell MF distributors to reveal the commissions earned on MF schemes. The regulator said that MF investors should know why a particular scheme is sold to them."
SRIKANTH SHANKAR MATRUBAI'S TAKE ::::
It seems SEBI is hell bent on Helping Insurance Companies by killing all sort of incentives given to Mutual Fund Agents. If SEBI is so concerned about investors, it should First tackle the Insurance Commission Menace. Insurance Commission can go upto as high as 40%, and the lowest commission in Insurance is 3%, which is NOT even the Highest Commission paid to Mutual Fund Agents.
So, what regulation is SEBI doing?. SEBI\`s role is not regulating the Mutual Funds but also Insurance cos. True, Insurance do come under purview of IRDA, but they too invest in Stock Market and they should also be controlled by SEBI.
The ULIPs issued by Insurance Cos are sold (mis-sold) in the most worst manner with payback commission ranging upto 15%. So, is the investor gaining. He is being paid back his own money!
The silver Lining with this SEBI move will be that from now on, people will be ready to Shell out Money to Financial Planners for offering Advise on Mutual Funds. So, the good thing is, that Good Mutual Fund Advisors will earn Consultancy Fees rather than Upfront commission.
So, Good Mutual fund Advisors will be in greater demand than ever before!. That will be a great, as and when it happens.
Regards,
Srikanth Shankar Matrubai.
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