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:
- According to the SEBI circular dated 20th 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.