What is Onboarding ?
The onboarding process is among the most complex of all client facing activities. Reams of documentation are exchanged between a client and the investment management firm, and distributed throughout the organization, most of which requires approvals, signatures, and validations. Onboarding requires finalizing legal agreements, Know Your Customer (KYC) and Anti Money Laundering (AML) activities, opening client accounts on multiple systems, and transitioning incoming assets. Each of these activities engages multiple groups throughout the organization, such as client service, legal, compliance, and operations. Given these complexities, without well-defined and coordinated procedures, errors such as misplaced information, breakdowns in communication, and duplicated efforts are likely. The right hand needs to know what the left hand is doing in order to properly manage all the hand-offs and moving parts.
Benefits of improving onboarding :-
- Ability to generate fees sooner.
- Increased potential to cross sell, additional products and services.
- More referrals from clients due to positive experience.
- Reduced client turnover.
- More efficient resource allocation.
- Better views into process status.
- Fewer mishandled communications and handoffs between team.
- Measurable efficiency through metrics.
- Faster addition of new products and services.
How to get your KYC done?
As per recent regulatory developments, from January 1, 2011, KYC (Know Your Client) is mandatory for investors wanting to transact in Mutual Funds, regardless of the transaction amount. This means you will not be able to process any fresh MF purchases post January 1, 2011, unless you are MF KYC compliant as per CDSL Ventures Limited (CVL) norms.
So you can always ask your broker's to get you forms and submit them for your KYC but as there are no mutual funds fees they may not be very helpful at times and so it is better you also know how you can get your KYC done yourself. The process is really very simple.
1. Get the Form
The KYC application form is available at the investor service centres of the Fund and CAMS or at any designated 'Points of Service' (POS) of CDSL Ventures Ltd. or can be downloaded from your broker, Advisor or AMC.
Documents required to be submitted along with the KYC application form are:
1. A recent passport size photograph
2. PAN card copy
3. Address proof (Recent bank statement will work but if you have get your bank statement in email you need to visit your bank branch to get an original one.)
Once you have the documents ready submit at CAMS Online office in your city. You can find the address of your CAMS Office. Make sure you carry the originals along with a xerox copy of the documents because at times they want to check with the originals.
After verification of the KYC application form and accompanying documents, investors will receive a letter certifying their KYC compliance. They normally give you the letter in few hours to a max of 24 hours and there is no charge for this verification.
You can verify your KYC status online. The day you submit your form your status should be processing and once it is processed your status should become VERIFIED.
Actually KYC need not be done at your broker's end but some online system does not accept order if they don't have the data in their own system and so it is better to get that done as well. Once you have the letter you can send that letter’s copy to your broker to update.
Uploading of cheque and bank mandate
Since the word cancelled is written on it, no one can misuse this cheque. However, the cheque provides the proof for the account credentials to concerned registrar to ensure that the funds are received as well as redeemed into the same account.
Please click on Bank Mandate, download the filled form, print and sign and send to us along with a signed cancelled cheque and we will ensure that the mandates are registered. It takes 7-15 working days after receipt of form at our end. But it is only a one time process.