I do not know whether this is being cynical or this is how life is supposed to be. In the year 2000 when I started doing training as a full time profession, mutual funds were the first port of call. This was not by design but in 2001 the AMFI exam was introduced (it was voluntary and the passing marks were pegged at 60). In 2001-2 it was made compulsory. At that time the example that we used to give for Trustee’s role was – keeping the environment clean for the investor to trust. Not sure about the others but I ASSUMED that mutual fund dealing rooms would not allow cell phones – a good habit from good brokerage houses. When I checked with 2-3 fund houses, it was proved to be A CORRECT ASSUMPTION. Now after 10 years SEBI is saying ‘you cannot carry a cell phone into the dealing room’.
IN the mid to late ’90s debt had to be rated. If a rating agency ranked Tata Finance AA, but rated Lloyds Finance and Apple Finance AAA, we laughed at the RATING agency, did not believe it at all.
When clients say they trust their IFA in many cases they are being lazy, NOT TRUSTING. They are too lazy and they hope that their IFA will not cheat them.
I tell my friends…”do not blame you it is just that the 97% of the bad guys get the 3% of US a bad name”. L O L, this is not original – a friend who is a lawyer says that.
I am saying this because a news article in Business Standard is doing the round with the IFAs ..saying there are agents who used their clients cheques to allot units to themselves. With a colour printer and colour photocopying becoming so easy..it is easy to create fake documents, is it not?
Now (QUICKLY in about 12 years time) SEBI will say blood samples will have to be attached to the application form…I hope to be senile or dead by that time. Amen.
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