AMFI-ARN registration process

The mutual fund investment market development and future depends hugely on the intermediaries’ role. Since they play a key role in promoting the sale of mutual funds, it becomes important that they possess highest standard of knowledge, attitude and work ethics.

Their method of doing business and orientation quality will put a significant impact on this industry. Considering all these factors, AMFI (Association of Mutual Funds in India) introduced the registration process of intermediaries passed in the certification test of AMFI Registered Mutual Fund Advisors (ARMFA), which later transformed into NISM Series VA Mutual Fund Distributors Certification Examination.

The key objective of AMFI is to lay the foundation of an organized industry by allotting a unique code-AMFI Registration Number (ARN) along with an identity card. The importance of this particular step was recognized by SEBI and make it compulsory for intermediaries to be registered ARMFA having a unique code (ARN).

SEBI passed a circular that after passing the certification test of NISM as per changed mandate with effects from June 01, 2010; the registration requirement with AMFI would continue in terms of its circular dated on Nov 28, 2002. The intermediaries who are not registered with AMFI and haven’t obtained ARN will not be able to deal with mutual funds.

Hence, it is mandatory for intermediaries passed in the certification test of NISM to get registered with AMFI and obtain an ARN identity card in order to be eligible for dealing and selling of mutual fund schemes. The circular dated by SEBI on Sep 13, 2012 elucidates the term that, AMFI has to create the ARN for the employees\ relationship managers\ sales person of the distributor who interacts with the investor of the mutual fund scheme.

In order to enable to must have provisions for disclosing the ARN of the distributer and the unique identification code of the sales person in the application form.

The eligibility criteria for ARN registration process are:

• The minimum age should be 18 years for obtaining ARN
• The codes of conducts and other undertaking mentioned in the application form has to get the consent of the individual agents, brokers and other intermediaries engaged in selling of mutual fund scheme.
• The senior citizen who have attended CPE (continuing professional education) have to agree with the codes of conducts and undertaking mentioned as per the application form.
• The corporates engaged in the business of the mutual funds also has to agree and abide by the code of conducts and other undertaking mentioned in the application form.
• After the eligibility criteria being fulfilled, a photo identity card bearing unique ARN address, name, photo and the validity period of the ARN is issued to the individual applicants and senior citizens.
• For corporate applicant’s letter of registration bearing unique ARN, name of the corporate and validity period of ARN is issued after eligibility criteria being fulfilled.
• In case of employees, a EUIN card with their name, photo and validity period of EUIN is issued.

It is compulsory to accompany the registration of corporate employee by application for registration of corporate bodies.

A passing certificate is issued by the National Institute of Securities Market (NISM) in respect of ‘NISM- series V-A: Mutual fund distribution examination which has validity of three years. The CPE certificate issued by NISM is also valid for 3 years.

If the application is in requisite order, the ARN issued to individual, senior citizens and EUIN issued to employees against such certificate has validity from the date of submission of ARN registration application form up to the validity date mentioned in the passing certificate \ CPE certificate.