MFs expect no gain from Agent fee disclosure
Even after the Insurance Regulatory and Development Authority (IRDA) has asked the insurance companies to make a disclosure on the Agent commission, the experts in the industry see little gain coming out of the move as the industry officials are of a view that it will give only a minor benefit for levelling the playfield for mutual funds vis-à-vis ULIPs.
In fact, experts are of a view that the Mutual Funds industry will take a little time more than expected to recover from the dip in distributor revenue due to the entry load ban.
It is believed that nearly half of the country's independent financial advisors selling mutual funds have chosen to exit the industry after the ban on entry loads have been in effect.
Many of them have even chosen to sell ULIPs rather than mutual funds as the former offers lucrative commissions to the agents. In fact, experts are of a view that under the rift between SEBI and IRDA, SEBI is trying to bring uniformity in the commission structure of the Mutual funds and ULIPs in the domestic circuit.