Following the earlier SEBI circular, AMFI (Association of Mutual Funds in India – an association of the 44 Asset Management Companies that are registered with SEBI) has come up with a Consolidated Account Statement (CAS) format. They have also come with a formula for calculating and apportioning commissions and other rewards.
Download the CAS format here:
Source: CaféMutual; http://cafemutual.com/news/industry/6536-how-will-the-commissions-be-calculated-in-cas
Key points to note:
According to the SEBI circular dated 20 th September 2016, AMCs will provide investors two crucial information in the half-yearly CAS ( ended September/March).
First, the CAS will now provide information on the total purchase value/cost of investment in each scheme.
Second, it will also provide (in absolute terms) the amount of actual commission paid by AMCs/Mutual Funds (MFs) to distributors on each of the schemes that the investor has invested in.
The term ‘commission’ here refers to all direct monetary payments and other payments made in the form of gifts / rewards, trips, event sponsorships etc. by AMCs/MFs to distributors.
AMFI has come up with a formula on how payments other than commissions (such as the form of gifts/rewards, trips, event sponsorships etc.) to distributors will be apportioned and displayed at investor/scheme level.
Such kind of expenses incurred by the AMC on a distributor will be divided among the distributors clients and the various schemes held by them based on the average AUM held by the investor in that scheme.
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