Distributor FAQs

Distributor FAQs

Q. Do I need to be authorized before distributing Alfalah GHP Investment Management Limited (AGIML)’s products?

Yes, any individual / company wishing to distribute AGIML‘s products must be authorized first from MUFAP.

Q.How do I become an authorized from the MUFAP?

You should first obtain and review the criteria for authorization available on the MUFAP “Registered Service Provider” page. Then, fill out the assessment questionnaire for individual distributors and corporate employees (of institutional distributors) and submit it to the MUFAP with prescribed processing fee. Individual/Institutional will be notified in writing when their authorization is final MUFAP will allocate the registration number.

Q.How long does it take to become authorized?

It depends on several factors, including how complete your application is.

Q. Is there a cost or fee to become Registered Services Provider from MUFAP?

registered services provider of MUFAP (for first time application and annual renewals – The above Fees can be paid through crossed cheque or Pay Order in favour of “Mutual Funds Association of Pakistan”)

Q. Once I am authorized, am I authorized indefinitely?

Authorizations are typically effective for one year at which time they may be renewed annually

Q. Who can be a distributor of Alfalah GHP Investment Management Limited (AGIML)?

Any one of these can be a distributor of Alfalah GHP Funds:

  • Financial Institutions
  • Financial Supermarkets/Banks
  • Advisors/Facilitators

 

All of the above must fulfill the criteria as mentioned by SECP for the appointment of distributor otherwise they cannot become distributor of AGIML

Q. What are the criteria to become distributor of AGIML?

Following criteria should be fulfilled in order to become a distributor

  • Membership proof of the association (The Eligible Persons which intend to market and distribute mutual fund units on behalf of an “AGIML” , must first register as a Registered Service Provider with MUFAP, prior to signing of the distribution agreements with the AGIML.)
  • At least 2 persons or 20% of the employees/sales staff (whichever is higher) should have the ICM certification.
  • AGIML shall not share, directly or indirectly, the management fee earned on CIS under its management with any of the units holders of such CIS in any form whether in cash or in kind; and
  • AGIML, while entering into an agreement with the distributor of Mutual Funds, shall ensure that such distributor does not share commission/fee in any form with the underlying unit holders of a CIS. Whenever an AGIML becomes aware of any distributor sharing commission / fee received from AGIML with its clients (i.e. unit holders of a CIS). The AGIML shall immediately report the same to MUFAP which may consider cancellation of registration of such distributor.
  • While the scope of work shall be a part of the distribution agreement between every Registered Service Provider and the respective AGIML, the following clauses shall be applicable to all Registered Service Providers and mandatory to be implemented by the AGIML.

 

i The Registered Service Providers will not share commission/management fee in any form with their clients (unit holders of CIS) including through temptation of rebates/ gifts, kick backs with clients or any Related Party(s) etc.

  1. The Registered Service Providers shall not be entitled to receive any management fee sharing or any other compensation on its own investments in any CIS.

iii. The Registered Service Providers shall not be entitled to receive any management fee sharing or any other compensation, in case of category of clients that are stated in Restricted List which is listed below. This List shall be updated from time to time by MUFAP with the approval of its Board of Directors.

Restricted List

  1. a) Banks;
  2. b) Development Finance Institutions (DFIs); and
  3. c) Related Party(s) of Registered Service Providers.

 

The points (a) and (b) above do not include the retirement funds of the entity and are pertaining to the corporate investments only.

Due Diligence form to be filled for appointment as a distributor of AGIML

Due Diligence from – Investment facilitator

Due Diligence from – Corporate

Management Company will sign a management fee & sales load sharing agreement / understanding separately with each facilitator.

The agreement will be for One Year period, which shall be renewable for further one year with mutual consultation of both facilitator and AGIML.

The management company will retain a right to cancel the agreement with 30 days prior notice, in which case this Agreement will terminate at the end of such notice period. AGIML will discontinue making payment of any fee at the end of notice period

The Facilitator may terminate the Agreement on 30 days written termination notice to AGIM, in which case this Agreement will terminate at the end of such notice period. AGIML will discontinue making payment of any fee at the end of notice period