About Mutual Funds Distributors CPE

Background

National Institute of Securities Markets (NISM) performs two functions delegated to it under the Securities and Exchange Board of India (Certification of Associated Persons in the Securities Markets) SEBI (CAPSM) Regulations, 2007. They are:

• Offering mandatory Certification Examinations for Associated Persons in the Securities Market Intermediaries
• Offering Continuing Professional Education (CPE) Programs for Associated Persons in the Securities Market Intermediaries

NISM CPE for Mutual Fund Distributors

In exercise of the powers conferred by sub-regulation (1) of Regulation (9) of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007, NISM specifies the Continuing Professional Education Program for Associated Person holding a valid certificate of either the AMFI Mutual Fund (Advisors) Module (till May 31, 2010) offered by Association of Mutual Funds in India or the ‘NISM-Series-V-A: Mutual Fund Distributors Certification Examination’ (from June 1, 2010), for the purpose of revalidation of the certificate.

(Refer SEBI Notification No. LAD-NRO/GN/2010-11/09/6422 dated May 31, 2010) 

Accordingly, an Associated Person (distributors, agents or any persons employed or engaged or to be employed or engaged in the sale and/or distribution of mutual fund products) holding any of the above mentioned certificates and the validity of which has note expired, can revalidate his/her certificate for a period of three years from the date of expiry of the existing certificate by successfully completing the one day Mutual Fund Distributors Continuing Professional Education Program as specified by NISM during 12 months preceding the date of expiry of the certificate.

Also, Associated Person belonging to the Grandfathered* category can obtain a Certificate for the first time by successfully completing the one day Mutual Fund Distributors Continuing Professional Education Program as specified by NISM.

Note: Associated Person not belonging to the Grandfathered category, whose certificate has expired, will have to pass the NISM-Series-V-A: Mutual Fund Distributors Certification Examination to obtain a new certificate.

Design of the CPE Program

• The CPE Programs shall be delivered in a class-room format.
• NISM has Accredited CPE Providers for the delivery of the NISM CPE Programs.
• All NISM CPE Programs are of one day duration (approximately six hours).
• A test shall be conducted at the end of the CPE Program.
• After verifying that candidates have successfully completed the relevant CPE Program, NISM shall issue a new certificate or revalidate an existing certificate for a period of three years from the date of expiry of the existing certificate.

*Grandfathered: Any person who has completed the age of 50 years as on May 31, 2010 or who has an experience of 10 years or more as a distributor, agent or any person employed or engaged in the sale and/or distribution of Mutual Fund products, as on May 31, 2010, can be classified under the Grandfathered category.