Ch.4 · SEBI Mutual Fund Regulations · medium
Who is responsible for ensuring that a distributor's commission structure does not create a conflict of interest with investor interests?
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EXPLANATION
Both the AMC and the distributor share responsibility. AMCs must ensure their commission structures do not incentivise mis-selling (hence the ban on upfront commissions). Distributors must act in investors' best interests regardless of commission. SEBI sets the regulatory framework for both.
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