India revises code of conduct for mutual fund intermediaries
India has revised its code of conduct guidelines for the fund houses and distributors.
The objective is to check the flow of illicit money into mutual funds and safeguard the interest of investors, according to industry body, the Association of Mutual Funds in India.
In a 27-point revised code of conduct document for MF intermediaries, AMFI has added fresh directives to protect investors from potential frauds.
It has asked intermediaries to provide all documents of its investors in terms of the Anti Money Laundering/Combating Financing of Terrorism requirements.
The AMFI has also asked the intermediaries to ensure that the investor’s address and contact details filled in the mutual fund application form are their own, and not of any third party, so that the investors are protected from any potential fraudulent activities.
Wherever the required information is not available in the application form, intermediary have been asked to make reasonable efforts to obtain accurate and updated information from the investor.
“Intermediaries should abstain from filling wrong/ incorrect information or information of their own or of their employees, officials or agents as the investor’s address and contact details in the application form, even if requested by the investor to do so,” the revised code says.