NISM increases CPE course fee more than twice

Now, distributors have to spend either Rs. 3,600, if they wish to appear for the course on two non-consecutive days

June 06, 2012 11:28 IST | India Infoline News Service
From 1st June, the National Institute of Securities Markets (NISM) has revised requirements for two-day CPE (Continuing Professional Education) based on guidelines received from SEBI (Securities and Exchange Board of India).
The NISM has increased the course fee of CPE more than twice from 1st June. According to the earlier guidelines, a distributor had to complete the CPE program six months before the date of expiry of the certificate, by attending a one-day program after paying Rs. 1,500 as fee.
Now, distributors have to spend either Rs. 3,600 (Rs. 1800 for each day), if they wish to appear for the course on two non-consecutive days or Rs. 3,400 for two consecutive days. The validity of the certificate remains for three years.
“A candidate with a valid NISM/AMFI certificate is required to complete the mandated 2 day NISM CPE Programme within a period of 12 months preceding the date of the expiry of the said certificate. CPE Programme can be successfully completed by a candidate by either attending the relevant CPE Programme on 2 consecutive days or with a gap,” according to the revised requirements.
A distributor holding a certificate whose validity has lapsed between 1 June 2012 and 30 November 2012, and who has not undergone the CPE programme, can attend the NISM MFD CPE according to the revised requirements from 1st June, within the validity period of the said certificate.
The revised rule says that any distributor holding a certificate whose validity will expire on or after 1 December 2012 must undergo the NISM MFD CPE as per the revised requirements from 1 June 2012 onwards. The CPE programs conducted by CPE providers shall be approximately of 12-hour duration to be conducted over two training days. At the end of the second day of the CPE Program, a test shall be conducted by the CPE Provider.
According to Pankaaj Maalde, head-financial planning, Apnapaisa.com, the hike in fees will neither help distributors nor the industry. Already after the removal of entry load, mutual fund distributors are finding it difficult to survive and further increase in course fees will be a burden on them.
He further adds, “The CPE programme does not give any value addition to the distributors. As it is mandatory, distributors have to learn it. Instead, NISM should start continuous learning programme wherein distributors have to undergo minimum three full days or six half day training provided by AMCs (asset management companies) in every three years. There should be other options available to distributors for renewal of certificate rather paying fees compulsorily.”
NISM has been conducting CPE programmes for distributors since June 2010, which was earlier conducted by AMFI as an AMFI Refresher Course.

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