All About AMFI Nomenclature for Mutual Fund Distributors

All About AMFI Nomenclature for Mutual Fund Distributors. The Association of Mutual Funds in India (AMFI) has issued important guidelines aimed at clarifying the nomenclature that Registered Mutual Fund Distributors (MFDs) should use. This guidance is in accordance with Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013 and aims to ensure clarity and compliance within the industry. Also, before AMFI Registration for any entity, it is necessary to check if the name of the company is fulfilling the AMFI guidelines or not. This article explores into the details of the guidelines, permissible and non-permissible names, mandatory tagline requirements, and deadlines for compliance.
Background and Need for AMFI Nomenclature Guidelines
The AMFI guidelines emerged from the necessity to distinguish between the roles of Mutual Fund Distributors (MFDs) and Investment Advisers (IAs). SEBI mandated that individuals or entities involved in the distribution of mutual funds must not use titles that imply advisory services unless they are registered as Investment Advisers.
What is the Regulation About?

As per Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013, MFDs are prohibited from using terms like "Adviser," "Advisor," or similar nomenclature, which might confuse investors about their roles.

The regulation ensures that MFDs’ names accurately reflect their registration and do not create a misleading impression.

Key Objectives of the Guidelines
1. Transparency: Ensure that investors are not misled about the services offered by MFDs.
2. Clarity: Distinguish the roles of MFDs and IAs by standardizing the nomenclature.
3. Compliance: Facilitate adherence to SEBI regulations across the mutual fund distribution ecosystem.
Details of the Guidance and Compliance
1. List of Permissible and Non-Permissible Names
To eliminate ambiguity, AMFI has provided an illustrative list of names that are acceptable and those that are not. This ensures consistency and uniformity in the mutual fund distribution industry.

Examples of Permissible/Acceptable Names:

Sr. No.

Acceptable Names

XYZ Asset

XYZ Asset Distribution

XYZ Asset Services

XYZ Capital

XYZ Capital Distribution

XYZ Capital Services

XYZ Edge Distribution

XYZ Edge Investment

XYZ Enterprises

XYZ Fin

XYZ Finance! Financial

XYZ Financial Distribution

XYZ Financial Investment

XYZ Financial Services

XYZ Finmart

XYZ Finserve ! Finserv

XYZ Finvest

XYZ Fundmart! Fundsmart

XYZ Invest

XYZ Investmart

XYZ Investment Services

XYZ Investments

XYZ Investor Services

XYZ Investor Shoppee

XYZ Ltd. ! XYZ LLP

XYZ MF Services

XYZ Money

XYZ Money Services

XYZ Moneymart

XYZ Mutual Fund Distribution! Mutual Fund Distributors

XYZ Mutual Fund Services

XYZ Partners

XYZ Prime Distributors ! Distribution

XYZ Prime Investment!s

XYZ Prime Wealth

XYZ Securities

XYZ Securities Distribution

XYZ Services

XYZ Wealth

Examples of Non-Permissible Names:

Sr. No.

Not Acceptable Names

XYZ Adviser/Advisor

XYZ Advisory Services

XYZ Capital Adviser

XYZ Capital Management

XYZ Consultancy Services

XYZ Consultants

XYZ Consulting

XYZ Corporate Advisory

XYZ Financial Consultancy

XYZ Financial Consultancy Services

XYZ Financial Consultant/s

XYZ Financial Consulting

XYZ Financial Planner/s

XYZ Financial Planning

XYZ Financial Solutions

XYZ FinPlan

XYZ Finsol

XYZ Finsolutions

XYZ Fund Adviser

XYZ IFA

XYZ Independent Financial Adviser

XYZ Investment Consulting

XYZ Investment Adviser

XYZ Investment Consultancy

XYZ Investment Consultancy Services

XYZ Investment Consultant/s

XYZ Investment Manager/s

XYZ Investment Planners

XYZ Investment Solutions

XYZ Money Manager

XYZ Multi Wealth Investments

XYZ Planner/s

XYZ Solution(s)

XYZ Wealth Adviser/s or Wealth Advisor/s

XYZ Wealth Advisory

XYZ Wealth Advisory Services

XYZ Wealth Care

XYZ Wealth Chanakya

XYZ Wealth Consultancy

XYZ Wealth Consultants

XYZ Wealth Consulting

XYZ Wealth Creator/s

XYZ Wealth Express

XYZ Wealth Investments

XYZ Wealth Mall

XYZ Wealth Management

XYZ Wealth Manager

XYZ Wealth Planner

XYZ Wealth Plus

XYZ Wealth Services

XYZ Wealth Solution/s

XYZ Wealth Vision

XYZ Wealth Yantra

The key takeaway is that permissible names should clearly indicate the entity's role as an MFD without implying advisory functions.
2. Mandatory Tagline for MFDs
To further emphasize their role, MFDs must include a mandatory tagline, “AMFI-registered Mutual Fund Distributor,” with their name. This tagline should:

Be displayed prominently in all forms of communication.

Be in a clear and legible font of at least size 12.

Appear on business cards, websites, mobile apps, electronic materials, and signboards.

This ensures that the public is well-informed about the nature of services provided by the MFD.
3. Application for Name Change
MFDs with non-compliant names are required to apply for a name change with the Registrar of Companies (RoC) or relevant authorities. The initial deadline for compliance was October 15, 2020, which was later extended to October 31, 2020.
Steps for Name Change:

Identify whether the existing name complies with AMFI's guidelines.

Submit an application for a name change to RoC before the deadline.

Ensure that the new name adheres to the permissible list provided by AMFI.

4. Communication with AMFI for Clarifications
If any distributor is uncertain about the compliance of their proposed or existing name, you can reach out to us for guidance. This step ensures clarity and avoids potential regulatory issues.
Ensuring Compliance Across Communication Channels
The AMFI guidelines specify that the compliant name and mandatory tagline must appear on all communication platforms, including:

Websites: The name and tagline should be prominently displayed on the homepage.

Mobile Applications: Clearly mention the tagline in the app interface.

Printed Materials: Business cards, brochures, and advertisements must comply.

Electronic Materials: Emails and digital campaigns should include the tagline.

Signboards: Ensure that office and branch signage meet the font size and visibility requirements.

Implications of Non-Compliance
Failure to adhere to the AMFI guidelines can result in regulatory actions, including penalties or suspension of registration. Non-compliant names can also damage the trust and credibility of the distributor among investors.
Benefits of Adhering to AMFI Guidelines
1. Enhanced Credibility: Compliance builds trust among clients by clearly communicating the distributor’s role.
2. Regulatory Alignment: Aligning with AMFI and SEBI regulations reduces the risk of legal complications.
3. Professional Reputation: A standardized naming convention projects professionalism in the industry.
4. Investor Protection: Clear nomenclature prevents confusion, ensuring that investors make informed decisions.
Conclusion
The AMFI guidelines on Mutual Fund Distributor nomenclature are an important step toward ensuring transparency and professionalism in the mutual fund industry. By standardizing the names and mandating the use of a clear tagline, AMFI aims to prevent confusion among investors and align the roles of MFDs with SEBI regulations. Mutual Fund Distributors should proactively review their compliance status, adopt permissible names, and ensure proper communication to uphold trust and integrity in their services.
If you have any queries regarding AMFI Registration, you can book a consultation with us through our email at info@ccoffice.in or Call/Whatsapp us on 9988424211.
Frequently Asked Questions
Q1. What is the purpose of AMFI’s guidelines on nomenclature?
Ans. The guidelines aim to differentiate Mutual Fund Distributors (MFDs) from Investment Advisers (IAs) by standardizing the naming conventions and ensuring transparency in their roles.
Q2. Can an MFD use the term “Wealth Manager” in their name?
Ans. No, terms like “Wealth Manager” or “Wealth Adviser” are not permissible unless the entity is registered as an Investment Adviser with SEBI.
Q3. Is it mandatory to include the tagline “AMFI-registered Mutual Fund Distributor”?
Ans. Yes, all MFDs must include the tagline in all forms of communication to comply with SEBI and AMFI regulations.
Q4. What is the font size requirement for the tagline?
Ans. The tagline must be displayed in a clear and legible font, with a minimum size of 12.
Q5. What should an MFD do if their current name is non-compliant?
Ans. MFDs with non-compliant names should apply for a name change with the Registrar of Companies (RoC) or relevant authorities before the specified deadline.
Q6. How can an MFD confirm if their name is compliant?
Ans. MFDs can refer to the illustrative list of permissible and non-permissible names provided by AMFI. For further clarification, you  can contact us at info@ccoffice.in.
Q7. What are the consequences of non-compliance with AMFI guidelines?
Ans. Non-compliance may lead to penalties, suspension of registration, or reputational damage, affecting the distributor's credibility and operations.

The Association of Mutual Funds in India (AMFI) has issued important guidelines aimed at clarifying the nomenclature that Registered Mutual Fund Distributors (MFDs) should use. This guidance is in accordance with Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013 and aims to ensure clarity and compliance within the industry. Also, before AMFI Registration for any entity, it is necessary to check if the name of the company is fulfilling the AMFI guidelines or not. This article explores into the details of the guidelines, permissible and non-permissible names, mandatory tagline requirements, and deadlines for compliance.

Background and Need for AMFI Nomenclature Guidelines

The AMFI guidelines emerged from the necessity to distinguish between the roles of Mutual Fund Distributors (MFDs) and Investment Advisers (IAs). SEBI mandated that individuals or entities involved in the distribution of mutual funds must not use titles that imply advisory services unless they are registered as Investment Advisers.

What is the Regulation About?

As per Regulation 3(3) of the SEBI (Investment Advisers) Regulations, 2013, MFDs are prohibited from using terms like "Adviser," "Advisor," or similar nomenclature, which might confuse investors about their roles.
The regulation ensures that MFDs’ names accurately reflect their registration and do not create a misleading impression.

Key Objectives of the Guidelines

1. Transparency: Ensure that investors are not misled about the services offered by MFDs.

2. Clarity: Distinguish the roles of MFDs and IAs by standardizing the nomenclature.

3. Compliance: Facilitate adherence to SEBI regulations across the mutual fund distribution ecosystem.

Details of the Guidance and Compliance

1. List of Permissible and Non-Permissible Names

To eliminate ambiguity, AMFI has provided an illustrative list of names that are acceptable and those that are not. This ensures consistency and uniformity in the mutual fund distribution industry.

Examples of Permissible/Acceptable Names:

Sr. No.	Acceptable Names
1	XYZ Asset
2	XYZ Asset Distribution
3	XYZ Asset Services
4	XYZ Capital
5	XYZ Capital Distribution
6	XYZ Capital Services
7	XYZ Edge Distribution
8	XYZ Edge Investment
9	XYZ Enterprises
10	XYZ Fin
11	XYZ Finance! Financial
12	XYZ Financial Distribution
13	XYZ Financial Investment
14	XYZ Financial Services
15	XYZ Finmart
16	XYZ Finserve ! Finserv
17	XYZ Finvest
18	XYZ Fundmart! Fundsmart
19	XYZ Invest
20	XYZ Investmart
21	XYZ Investment Services
22	XYZ Investments
23	XYZ Investor Services
24	XYZ Investor Shoppee
25	XYZ Ltd. ! XYZ LLP
26	XYZ MF Services
27	XYZ Money
28	XYZ Money Services
29	XYZ Moneymart
30	XYZ Mutual Fund Distribution! Mutual Fund Distributors
31	XYZ Mutual Fund Services
32	XYZ Partners
33	XYZ Prime Distributors ! Distribution
34	XYZ Prime Investment!s
35	XYZ Prime Wealth
36	XYZ Securities
37	XYZ Securities Distribution
38	XYZ Services
39	XYZ Wealth

Examples of Non-Permissible Names:

Sr. No.	Not Acceptable Names
1	XYZ Adviser/Advisor
2	XYZ Advisory Services
3	XYZ Capital Adviser
4	XYZ Capital Management
5	XYZ Consultancy Services
6	XYZ Consultants
7	XYZ Consulting
8	XYZ Corporate Advisory
9	XYZ Financial Consultancy
10	XYZ Financial Consultancy Services
11	XYZ Financial Consultant/s
12	XYZ Financial Consulting
13	XYZ Financial Planner/s
14	XYZ Financial Planning
15	XYZ Financial Solutions
16	XYZ FinPlan
17	XYZ Finsol
18	XYZ Finsolutions
19	XYZ Fund Adviser
20	XYZ IFA
21	XYZ Independent Financial Adviser
22	XYZ Investment Consulting
23	XYZ Investment Adviser
24	XYZ Investment Consultancy
25	XYZ Investment Consultancy Services
26	XYZ Investment Consultant/s
27	XYZ Investment Manager/s
28	XYZ Investment Planners
29	XYZ Investment Solutions
30	XYZ Money Manager
31	XYZ Multi Wealth Investments
32	XYZ Planner/s
33	XYZ Solution(s)
34	XYZ Wealth Adviser/s or Wealth Advisor/s
35	XYZ Wealth Advisory
36	XYZ Wealth Advisory Services
37	XYZ Wealth Care
38	XYZ Wealth Chanakya
39	XYZ Wealth Consultancy
40	XYZ Wealth Consultants
41	XYZ Wealth Consulting
42	XYZ Wealth Creator/s
43	XYZ Wealth Express
44	XYZ Wealth Investments
45	XYZ Wealth Mall
46	XYZ Wealth Management
47	XYZ Wealth Manager
48	XYZ Wealth Planner
49	XYZ Wealth Plus
50	XYZ Wealth Services
51	XYZ Wealth Solution/s
52	XYZ Wealth Vision
53	XYZ Wealth Yantra

The key takeaway is that permissible names should clearly indicate the entity's role as an MFD without implying advisory functions.

2. Mandatory Tagline for MFDs

To further emphasize their role, MFDs must include a mandatory tagline, “AMFI-registered Mutual Fund Distributor,” with their name. This tagline should:

Be displayed prominently in all forms of communication.
Be in a clear and legible font of at least size 12.
Appear on business cards, websites, mobile apps, electronic materials, and signboards.

This ensures that the public is well-informed about the nature of services provided by the MFD.

3. Application for Name Change

MFDs with non-compliant names are required to apply for a name change with the Registrar of Companies (RoC) or relevant authorities. The initial deadline for compliance was October 15, 2020, which was later extended to October 31, 2020.

Steps for Name Change:

Identify whether the existing name complies with AMFI's guidelines.
Submit an application for a name change to RoC before the deadline.
Ensure that the new name adheres to the permissible list provided by AMFI.

4. Communication with AMFI for Clarifications

If any distributor is uncertain about the compliance of their proposed or existing name, you can reach out to us for guidance. This step ensures clarity and avoids potential regulatory issues.

Ensuring Compliance Across Communication Channels

The AMFI guidelines specify that the compliant name and mandatory tagline must appear on all communication platforms, including:

Websites: The name and tagline should be prominently displayed on the homepage.
Mobile Applications: Clearly mention the tagline in the app interface.
Printed Materials: Business cards, brochures, and advertisements must comply.
Electronic Materials: Emails and digital campaigns should include the tagline.
Signboards: Ensure that office and branch signage meet the font size and visibility requirements.

Implications of Non-Compliance

Failure to adhere to the AMFI guidelines can result in regulatory actions, including penalties or suspension of registration. Non-compliant names can also damage the trust and credibility of the distributor among investors.

Benefits of Adhering to AMFI Guidelines

1. Enhanced Credibility: Compliance builds trust among clients by clearly communicating the distributor’s role.

2. Regulatory Alignment: Aligning with AMFI and SEBI regulations reduces the risk of legal complications.

3. Professional Reputation: A standardized naming convention projects professionalism in the industry.

4. Investor Protection: Clear nomenclature prevents confusion, ensuring that investors make informed decisions.

Conclusion

The AMFI guidelines on Mutual Fund Distributor nomenclature are an important step toward ensuring transparency and professionalism in the mutual fund industry. By standardizing the names and mandating the use of a clear tagline, AMFI aims to prevent confusion among investors and align the roles of MFDs with SEBI regulations. Mutual Fund Distributors should proactively review their compliance status, adopt permissible names, and ensure proper communication to uphold trust and integrity in their services.

If you have any queries regarding AMFI Registration, you can book a consultation with us through our email at info@ccoffice.in or Call/Whatsapp us on 9988424211.

Frequently Asked Questions

Q1. What is the purpose of AMFI’s guidelines on nomenclature?

Ans. The guidelines aim to differentiate Mutual Fund Distributors (MFDs) from Investment Advisers (IAs) by standardizing the naming conventions and ensuring transparency in their roles.

Q2. Can an MFD use the term “Wealth Manager” in their name?

Ans. No, terms like “Wealth Manager” or “Wealth Adviser” are not permissible unless the entity is registered as an Investment Adviser with SEBI.

Q3. Is it mandatory to include the tagline “AMFI-registered Mutual Fund Distributor”?

Ans. Yes, all MFDs must include the tagline in all forms of communication to comply with SEBI and AMFI regulations.

Q4. What is the font size requirement for the tagline?

Ans. The tagline must be displayed in a clear and legible font, with a minimum size of 12.

Q5. What should an MFD do if their current name is non-compliant?

Ans. MFDs with non-compliant names should apply for a name change with the Registrar of Companies (RoC) or relevant authorities before the specified deadline.

Q6. How can an MFD confirm if their name is compliant?

Ans. MFDs can refer to the illustrative list of permissible and non-permissible names provided by AMFI. For further clarification, you can contact us at info@ccoffice.in.

Q7. What are the consequences of non-compliance with AMFI guidelines?

Ans. Non-compliance may lead to penalties, suspension of registration, or reputational damage, affecting the distributor's credibility and operations.