AMFI has decided to introduce Know Your Distributor (KYD) for Mutual Fund Distributors with effect from September 1, 2010, which would be similar to that of Know Your Client (KYC) for investors, requiring the distributors to submit mandatorily identity proof, address proof, PAN and bank account details with proof. It is also decided to introduce bio-metrics as a part of KYD process.
The prescribed form for KYD and updation of information such as change of address, contact details, bank account, etc. are available on AMFI Website.
To start with, KYD norms will be applicable for fresh ARN registration and ARN renewal effective from September 1, 2010. The existing ARN holders would also be required to comply with KYD norms within 6 months i.e. by end of February 2011, failing which AMCs shall suspend payment of commission till the distributors comply with the requirements.
AMFI has retained the services of Computer Age Management Services Pvt. Ltd. (CAMS) for the said purpose. CAMS will be initially providing KYD facilities at 60 Point of Services (POS) which is expandable to more centers, if required. The details of POS are uploaded on AMFI Website as well as on the website of CAMS.
For process flow of distributors on Know Your Distributor (KYD) please click here.