At the outset, FPSB India welcomes SEBI’s proposal on Waiver of Load for Direct Applications in Mutual Fund Schemes: and also would like to offer certain suggestions for holistic implementation of the proposal.
FPSB India as an unbiased umbrella enterprise for the Financial Services industry with an objective to professionalize the Financial Services Sector as a whole has been proactive in addressing various public policy issues that affect the financial well being of business, as well as individuals who practise the Financial Planning profession keeping the Financial Consumers the Centrum. Establishment & cultivation of Financial Planning is our objective.
Initiation was made by FPSB India for discussions with the industry representatives and subsequently, there were two meetings facilitated by FPSB India held on September 6, and September 10, in order to offer a platform to the financial services professionals and establishments across various disciplines viz. Asset Management Companies, Banks, Distribution Houses and Insurance Organizations across both public as well as private sector. Around 50 senior professionals from the industry participated in the discussions.
According to Mr. Ranjeet S Mudholkar, CEO-FPSB India “This could be an excellent opportunity to promote Financial Planning in the country if along with SEBI’s proposal, recommendations as mentioned by FPSB India are duly considered as well.”
It is appreciated that the three key stakeholders are Asset Management Companies, the Distributors and the Investors- informed as well as uninformed. Though the immediate interests of each of these stakeholders may differ, they do indeed have a common objective - that of growth and development of the Mutual Fund Industry in terms of size as well as performance. The more the industry grows- better the technology and skilled manpower that AMCs would be able to afford thereby engendering more competition and better returns to the investors all across.
After in depth deliberations, the collective view of the group may be summarized as follows:
• Conceptually the introduction of No-Load Funds is indeed a consumer centric and welcome step and should be initiated.
• It may not be viable to introduce this in its present suggested form by isolating only mutual funds.
• It is suggested that a variable load structure may be introduced.
• Simultaneously, establishment of dedicated No-Load Funds by the AMCs may be considered.
• These steps should be accompanied with a proactive Consumer Awareness Programme.
FPSB India would continue its efforts and facilitate convergence amongst all the stakeholders for the said regulations.
Mr. Shailesh Haribhakti was unanimously elected as the Chairman for the second term and Mr. Ajay Bagga, CEO Lotus AMC was elected as Vice Chairman of the Board of FPSB India.
Mr. Gautam Chikermane, Editor Special Projects and Mr. Deepak Chawla, Deputy Managing Director, State Bank of India were also nominated to the Board of FPSB India.
Mr. Shailesh Haribhakti on his reelection as Chairman of the Board said “I am deeply honored by the trust reposed to me by the Board and Members and in the next two years it would be our endeavor to establish the Financial Planning as an established profession as per the accepted global best practices”.
Mr. Ajay Bagga on being elected as the Vice Chairman of the Board said “It’s a glorious opportunity to actively participate in growth of the Financial Planning Movement in India. Financial Planning Approach towards Financial Service delivery is the accepted norm in developed markets and it would be my priority to promote the concept of Financial Planning among the Financial Consumers as well as the various stakeholders in the country.”
According to Mr. Ranjeet S Mudholkar CEO FPSB India “The Board of FPSB India is an eclectic representation of the Financial Service Industry and will surely provide cooperative guidance to the executive in achieving FPSB India objectives”.
For complete list of Board of Directors of FPSB India, kindly refer Annexure I.