Boosting financial advisors and providing greater flexibility to manage the total expense ratio (TER) for AMCs are on priority list of the ministry.
The Secretary, Department of Economic Affairs met mutual fund industry officials and financial advisors association along with senior officials of finance ministry and SEBI to discuss the strategies to re-boost the mutual fund industry.
The ministry is concerned with the decline in gross asset mobilisation in the mutual fund industry in 2009-2010 and steps needed to boost the advisory fraternity. "The objective of the Government and SEBI is to align the interest of all the share holders and streamline the operational procedures to achieve the highest growth in mutual fund industry," said a press release issued by the ministry.
The ministry has classified the agenda discussed in the meeting into two categories – immediate and medium term plan. The immediate plan of the body is as follows:
Attend to issue relating to compensation payable to distributors
To provide greater flexibility to asset management companies to manage the total expense ratio (TER)
Medium term plan includes looking at greater role of pension and insurance sector. Tax related issues were also discussed in the meeting and the mutual fund industry has been asked to do an in-depth study of tax issues and submit a proposal to the Government.
Source: http://www.cafemutual.com/News/InnerNews.aspx?srno=1753&MainType=New&NewsType=Industry&id=21
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