What is ARN Code?
ARN or AMFI Registration Number refers to a unique number issued to every mutual fund distributor/agent involved in the sale of mutual funds. The intermediaries are required to register with AMFI for selling & marketing of mutual funds. Intermediaries will not be allowed to deal with mutual funds if they fail to register with AMFI and obtain ARN. Application for ARN can be made after getting registered with AMFI and passing the NISM Series-VA Mutual fund distributor examination.
Upon successful verification, intermediaries will receive a photo identity card containing an ARN code, intermediary address, and ARN validity period. The corporate applicants will be issued a registration letter with ARN code, company name, and ARN code validity. Corporate workers, salespersons, or employees will be issued a EUIN card with identical information in accordance with the EUIN.
Purpose of ARN Number
To protect the interest of investors, SEBI & AMFI have set guidelines that require the compliance of the intermediaries involved in the activities of selling & marketing of mutual funds. One such important guideline for the intermediaries is to obtain an ARN number after registration with AMFI. This unique number helps AMFI track the transactions conducted by distributors and also to maintain a check on their functioning.
The association with AMFI along with an issued ARN number of the MF advisor points out the authenticity of the distributor.
Also, the ARN number is used to monitor the total assets managed by the distributors and to measure their brokerage.
Who can apply for ARN code?
ARN is a unique number issued to -
- Individual agents, brokers, advisors and other intermediaries involved in the selling of mutual funds, who have passed the “NISM-VA Mutual Fund Distributor Certification Exam” and Senior citizens who have attended Continuing Professional Education (CPE) can apply for an ARN. They should be willing to comply with the code of Conduct and other undertakings as stated in the application.
- Corporations engaged in the selling of mutual funds, who have applied to AMFI and are willing to comply with the code of conduct and other undertakings as noted in the application form.
A photo identity card containing a unique ARN, address, name, photo, and period of validity of the ARN would be allotted to individuals and senior citizens, while a registration letter bearing a unique ARN, name of the company, and the validity of the ARN would be issued to Corporate Applicants.
Also Read: EUIN Number
How to apply for ARN Code?
M/s Computer Age Management Services Pvt has been authorized by AMFI. Ltd. (CAMS) to act as a processing agent in support of ARN. For registration, the agents need to apply in the prescribed format. The form can be obtained from AMFI’s office or any office of CAMS. One can also download the application form from AMFI’s website.
- Submit the application form along with the KYD acknowledgment to the CAMS office. In case the KYD process is not completed, the applicant needs to submit the ARN form along with the KYD application form.
- A copy of the NISM certification and two passport size color photographs must be submitted by the applicant.
- The fee for individuals and senior citizens shall be Rs.3,540 including GST. The fees and document requirements for the companies and other entities will be different.
One can also register online, by visiting the Online Registration page. The application form must be submitted along with KYD (Know Your Distributor) by letter or in person with the KYD application form (if KYD not completed).
Then, documents will be examined and, if they are seen in order and if the designated fee has been obtained, a Letter of Registration or a photo ID card will be issued & mailed directly to the candidate.
Renewal of ARN Code
ARN holders / EUIN holders are anticipated to apply for the renewal of ARN / EUIN cards, 6 months prior to the expiration of the validity period.
If the request for renewal is made before the expiry date of the ARN / EUIN then there would be continuance in the validity period of ARN / EUIN. If the renewal application is submitted after the expiry of the ARN / EUIN period, the validity of the renewed ARN / EUIN would start from the date of submission of the renewal application. It would be valid until the date of validity as specified on the NISM Passing Certificate / CPE Certificate.
In an instance of Corporate ARN holders, the registration letter will be renewed for a period of 3 years from the date of submission of the renewal application.
How to change arn code for a mutual fund?
An investor may not be satisfied with the services and advice being provided by their existing mutual fund distributor and may want to switch to a new advisor. To do so, the investment has to be delinked from the current AMC or distributor and a request with AMC must be raised.
This will result in change of the ARN code for a mutual fund. Once the alteration is made, units mapped in the name and ARN of the existing distributor will get transferred to a new agent and will be flagged under a new ARN.
This request can be made using a physical form prescribed by the AMC or a letter requesting for the change. The forms are usually available on the AMC website or can be procured from the nearest office.
In this form, name of the investors, folio number, name and ARN (AFMI Registration Number) of the existing distributor or agent along with the name and ARN of the new agent must be mentioned. This must be duly signed by all the investment holders.
Upon the receipt of request, it may take upto 7 to 10 days to reflect the changes. The SEBI ha mandate that an investor does not need to provide an NOC (No objection certificate) from the previous AMC or distributor.
Frequently Asked Questions - ARN Code
Q. Why is ARN important?
A. ARN is important to ensure the lawful & ethical functioning of the mutual fund industry. The ARN aims to protect the interest of the investors through regular monitoring of the activities of mutual fund intermediaries.
Q. What is ARN Code?
A. ARN or AMFI Registration Number refers to a unique identity number issued to every mutual fund advisor or distributor.
Q. What is the minimum age to apply for ARN Code?
A. The minimum age for obtaining ARN is 18 years.
Q. Can I apply for an ARN without a certification?
A. No, it is necessary to obtain "NISM Series-VA certification" before submitting an application for ARN.