Passlane Sign in

Ch.4 · AMFI Code of Conduct · hard

Can a distributor with an expired ARN continue to earn trail commission on existing AUM?

0% of students got this wrong

EXPLANATION

If a distributor's ARN expires and is not renewed, all commission payments including trail commissions are suspended. The distributor cannot conduct fresh transactions either. Renewal with CPE compliance is required to resume commissions.

A.Yes, trail commission continues unaffected

B.No, all commissions are suspended until ARN is renewed [✓ Correct]

C.Yes, but only for 3 months after expiry

D.No, the AUM is transferred to the direct plan immediately

EXPLANATION

If a distributor's ARN expires and is not renewed, all commission payments including trail commissions are suspended. The distributor cannot conduct fresh transactions either. Renewal with CPE compliance is required to resume commissions.

Practising Chapter 4 one question at a time?

Try the full chapter — 120 questions, tracked score, weak area breakdown.

Practice Chapter 4 →Take the mock test →