Ch.6 · ARN and EUIN Rules · medium
What is the implication of SEBI's ban on upfront commissions for distributor behaviour?
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EXPLANATION
With trail-only commissions, distributors earn money only as long as investors stay invested. This aligns distributor incentives with investor retention and long-term relationship building, rather than churning portfolios to earn new upfront commissions. The longer an investor stays, the more the distributor earns cumulatively.
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