Change of Broker in Mutual Funds

What exactly is a Change of Broker?

• ARN (AMFI Registration Number) identifies the distributor on each folio.

• A change of broker, also called an ARN transfer, updates that code in the RTA database.

• Units stay untouched. Only the “service provider” field on the folio changes.

Why do investors request a switch?

• Better digital tools or dashboard support

• Relocation or retirement of their current advisor

• Need for niche expertise, for example NRI tax or goal-based planning

• Service gaps such as delayed statements or poor follow-up

Understanding these triggers helps you position your own offering before, during, and after the 12-month freeze on trail commissions.

Regulation timeline

Current rules (effective 11 Aug 2025)

• New distributor earns trail only after 12 months from ARN-change date.

• RTA sends investor an SMS on T + 1 day; investor has 3 days to object.

• If no objection is raised, ARN updates on T + 11 day.

• If the investor flips again within those 12 months, the clock restarts.

Step-by-step process for distributors

1. Collect folio details – number and, if needed, scheme names.

2. Fill Annexure A – include old ARN, new ARN, EUIN, and holder signatures.

3. Submit to RTA or AMC – physical form or scanned copy with e-sign.

4. Track the SMS window – verify the investor received T + 1 alert.

5. Confirmation on T + 11 – keep a copy of the email for compliance.

6. Serve during cooling-off – provide reports and reviews even while trail is on hold.

Practical tips to handle the 12-month freeze