11th July 2012

Here is an important message from FIFA to all IFAs across India. FIFA has raised with SEBI, the issue of non-uniformity of procedures across the MF industry, particularly in non-financial transactions. SEBI has asked FIFA to compile a detailed report on these issues, after due consultations with IFAs and IFA Associations across India. This is a great opportunity for you to go through FIFA's message (reproduced below) and respond to them about the operational issues you face and would like tackled. You can submit your suggestions on FIFA's website : www.fifaindia.org

Message from FIFA

We are pleased to inform you that at a meeting between Mr. Rajiv Kumar Agarwal, Whole Time Director SEBI, Mr. Deepak Trivedi, Deputy General Manager SEBI and Mr. Amit Tandon SEBI with FIFA Directors on Tuesday 10th July, it was emphasised by FIFA that besides the income issues being faced by IFAs there is also another very important aspect of operational and service issues being faced by the IFA community on a daily basis. One of the issues is the non uniformity of procedures being adopted by the various Mutual Funds in dealing with the same issue. SEBI was very receptive to our concerns and has asked FIFA to compile a report of what are the issues and what can be done to address them from the AMC side. FIFA has been asked to take the inputs from all IFAs and IFA Associations pan India so that a comprehensive report can be submitted by FIFA to SEBI. We therefore urge you to please visit the FIFA website and submit all the operational and service issues you have and any suggestions to improve them. Your efforts in this matter will go a long way in improving the day to day issues that we IFAs face in our routine work to service our clients.

We are also pleased to inform you that FIFA, Foundation of Independent Financial Advisors, has been invited by the finance ministry once again for a meeting along with the SEBI, CEO's of some Mutual Fund houses and AMFI to discuss the "Steps to revitalize the Mutual fund Industry in India" on Thursday 12th July 2012. As you may be aware, one of the prime objectives of FIFA is to represent the views of the IFA's before the regulators. We invite your suggestions/ comments on this subject which can be put on the FIFA website www.fifaindia.org.

Please find below a note about FIFA and we welcome you to join the FIFA family.

Past several years have seen a great deal of upheaval in the financial markets and in its anxiety to provide for "Investor Protection" the regulators have enacted various regulations, especially since 2009 and published concept papers which have had far reaching impacts on the businesses of the IFA fraternity.

These steps have neither resulted in increasing the base of the Mutual Fund industry nor have they augured well for the IFA community. But evolution happens in pain and these challenges have acted as an impetus to the formation of an association of IFA's. During the course of interaction with various regulators an urgent need for a body of financial advisors to voice the concerns of the IFA community was felt. IFA's needed a body on the lines of CII, FICCI or ASSOCHAM to be representative of them.

It is indeed a matter of great pride and pleasure that we have been successful in forming an association of IFA's for this very purpose :-"Foundation of Independent Financial Advisors (FIFA)". FIFA, which is a non-profit Section 25 company, received its certificate of incorporation on 15th of February 2012. The objective and the endeavor of FIFA would be, to be 'ONE VOICE', of the IFA community, which has been waiting to manifest itself.

Please visit our Website www.fifaindia.org for more details including Quotes of AMFI and Mutual Fund CEO's on their views on the incorporation of FIFA, FIFA's reply to SEBI on the Concept Paper, Main Objectives of FIFA, Membership Forms and Fee Structure. Application forms for Membership can also be downloaded from the website.

FIFA has also made provisions for admission of registered local/regional association of IFA's as members of FIFA. In case you are already a members of a registered local / regional association you can ask your association to become a member of FIFA. Local associations can continue functioning the way they have been so far.

We would earnestly call upon all IFAs across the country to join FIFA to make it a representative pan India body of IFA's to give it further strength in voicing the concerns and views of the IFA community and make the IFA community count in the Industry.