In accordance with Securities and Exchange Board of India and Association of Mutual Funds in India guidelines, it is now mandatory to specify the details of the Employee Unique Identification Number (of the sales person involved in the relevant sale/marketing of mutual fund products) along with the AMFI Registration Number of the distributor and the sub-broker, if any, in mutual fund scheme application forms.
What is EUIN?
EUIN is a unique alpha numeric identity number allotted by AMFI to every employee, relationship manager or sales person of a distributor who interacts with investors for the sale of mutual fund products. EUIN is in addition to the ARN allotted to each distributor. It is also issued to individual and sole proprietorship ARN holders in their individual capacity as persons selling mutual fund products. Thus, while an ARN identifies a distributor, EUIN identifies the sales person who interacts with the investor.
The EUIN of such sales persons is to be disclosed on the Mutual Fund Scheme application forms/transaction requests along with the ARN of the distributor.
The principle is that EUIN should be provided for transactions that are advisory in nature, i.e. when an investment is made by an investor based on the advice provided by an employee, relationship manager, sales person of a distributor or an independent financial advisor (IFA).
What is the objective of introducing EUIN?
The aim is to identify the sales persons involved in selling mutual fund products, when investors invest through a distributor. This will help identify those involved in cases of mis-selling. This unique number also would help track mutual fund sales persons even in case of change in employment from one distributor to another.
Where should the EUIN be indicated?
Necessary provision for mentioning the EUIN (in addition to the capturing of ARN code/sub-broker code) of the employees is available in new application/transaction forms.
Can I leave the EUIN box blank?
The EUIN can be left intentionally blank if an investor has not received any advice on the investment/transaction from the distributor. In such a case, investors should sign an “execution only” declaration on the application form. The declaration would be as below:
I/We hereby confirm that the EUIN box has been intentionally left blank by me/us as this is an “execution-only” transaction without any interaction or advice by the employee/relationship manager/sales person of the above distributor or notwithstanding the advice of inappropriateness, if any, provided by the employee/relationship manager/sales person of the distributor and the distributor has not charged any advisory fees on this transaction.
What are the transactions for which EUIN is applicable?
The EUIN is to be mentioned for all kinds of purchase transactions, such as fresh purchases, additional purchases, switch-ins and new registrations of systematic investment and transfer plans (SIP/STP). In case of SIP/STP triggered transactions, EUIN quoted at the time of SIP/STP registration will be carried forward for subsequent instalments.
EUIN is not applicable for dividend reinvestments, bonus units, redemption and systematic withdrawal plan (SWP) registration.
(Contributed by CAMS Viveka, the Investor Education initiative of CAMS. Views expressed are general practices in the MF industry and may vary on a case-to-case basis).
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