Thread by @stepbystep888

Guidelines for #PMS:
*Fees*
1) no upfront fees shall be charged (directly/indirectly)
2) Brokerage at actuals shall be charged
3) Operating exp shall not exceed 0.5% p.a. of avg daily AUM (excl brokerage & mgnt fees)
4) Exit load not more than
3% yr 1
2% yr 2
1% yr 3
NIL, yr 3+

*Direct option in PMS*
1) a direct option to clients without intermediation of distributors
2) prominent disclosure of direct option in its Disclosure Documents, marketing material and on its website
3) no charges except statutory charges shall be levied from direct client

*Investment Approach (IA)*
1) info about IA(s) offered shall be uniform across all types of regulatory/client reporting, discl docx mrkt material
2) IA details
objective
typ of sec
basis of selctn
allocation of sec
appr. benchmark and basis of choice
indicative tenure
risk of IA

Reporting of Performance (P)
i) Consider all cash hldng and invtmnt in liquid fnds, for cal of P
ii) Report P data net of all fees and all exp
(iii) disclose any change in IA that may impact the P of client portfolio
iv) same P reported in marketing, website and Sebi

cont...

(v) Ensure that the aggregate P at firm-level reported in any document shall be same as the combined P of all the portfolios managed.
(vi) disclaimer in all marketing material that the P related info is not verified by SEBI.

>>> The firm-level P data shall be audited annually.

*Disclosure Documents*
Material change shall include change in control, Principal Officer, fees charged, charges associated with the services offered, IA(s) offered (along with the impact of such change) and such other changes as specified by @SEBI_India from time to time.

*Supervision of Distributors (D)*
(i) Utilize services of only such D who have a valid AMFI Registration Number or have cleared NISM-Series-V-A exam.
(ii) Pay fees or commission to D only on trail-basis & shall be only from the fees received by Portfolio Managers.

(iii) Ensure that prospective clients are informed about the fees or commission to be earned by the D
(iv) Ensure that D abide by the Code of Conduct
(v) Have mechanism to independently verify the compliance of its distributors with the Code of Conduct.

(vi) Ensure that, within 15 days from the end of every financial year, a self-certification is also received from distributors with regard to compliance with Code of conduct.

The provisions of this Circular shall be applicable with effect from May 01, 2020

link 👇👇👇

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