September 7, 2016

RIAs will have access to MF Direct Plan feeds

Sadique Neelgund

RIAs will have access to MF Direct Plan feeds


Since I have started on my campaign to sort out the direct feeds issue, there is much more clarity now.

I had written to the CEOs of 17 MFs, AMFI CEO, Karvy/ CAMS CEOs & SEBI. I had also met some of them. Myself & Rohit Shah had met AMFI CEO.  I have also met & talked to MFU CEO & Operations Head to sort out the problems we are facing in respect of Direct plans.

The following is the summary of what I have learnt –

  • R&Ts have agreed to receive the data feeds from MF Utility in some pre-agreed format and this may get operational in a fortnight. This means that after that point, if one has registered with R&Ts, the transactions will have RIA codes and will hence be seen in the data feeds from their end.
  • RIAs need to register with R&Ts. CAMS confirms that RIAs need not register with individual AMCs who are with them ( except IDFC, which they say also may not be necessary in future ). Also RIAs need to register with R&Ts for mailback services.
  • Letters are required from clients folio-wise to be sent to the concerned R&T, so that all transactions from the past pertaining to the folio are reported in the mailback services.
  • There is a small difference between CAMS & KARVY.
    1. In CAMS, based on the letter, all transactions till that day will be reported. However, future transactions need to capture RIA code. If not, inspite of the letter from client regarding that folio, it will not be reflecting in the mailback statements.
    2. In KARVY, based on the letter, all transactions will be reported in the mailback services, irrespective of whether the transactions capture RIA code or not.
  • Franklin Templeton has also come up with their RIA registration form just now. We need to first do that. Regarding mailback, it is not clear whether there is any extra form there.
  • Most AMCs have not put the RIA code on their forms & have no way to capture on their websites ( when someone invests in Direct mode ). They acknowledge that and are going to enable that.
  • I had raised the question as to why clients of RIAs need to give a letter to access client data, when distributors are not giving such a letter. We have not as yet got any satisfactory answer on this. All of you should write on this and exert pressure so that this onerous burden is removed.

This is a summary of the progress made till date. Hope this is useful to all concerned.

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