AMFI Directs MF Central to Halt Sharing Investor Data with Third-Party Apps

The Association of Mutual Funds in India (AMFI) has asked MF Central to stop providing investor data directly to fintech applications, as per the news reports. The platform is operated by Computer Age Management Services (CAMS) and KFin Technologies, the 2 registrar and transfer agents (RTAs) for Mutual Funds in India.

Existing Process

Currently, several fintech apps, particularly those offering guided mutual fund investments and loans against mutual funds, access investor details through MF Central. Data is shared once investors give consent using a one-time password (OTP).

Issues Raised

Concerns flagged by industry officials include risks around data security and the possibility that investors may give consent without fully realising the implications. Mutual fund distributors have also pointed out that such access allows fintechs to acquire clients with ease, bypassing traditional distribution channels.

Fund House Response

An official from a fund house clarified that the direction from AMFI does not aim to restrict digital innovation. According to the official, the issue is with the direct sharing of investor information. Any third party requiring data should obtain it directly from the investor.

Alternative Access

If the current practice is stopped, fintechs will have to source data from investors themselves. Investors can download consolidated statements either from MF Central or from the RTA websites. Fintechs that hold portfolio management services (PMS) or registered investment advisor (RIA) licences also have the option of accessing information through the account aggregator framework.

Read more: AMFI Pitches Mutual Fund-Based Retirement Account Scheme!

Background of MF Central

MF Central was launched in 2021 as a single-point platform for investors to carry out transactions across fund houses. In November 2024, CAMS and KFin created a separate entity to run the platform, with an aim to expand its services and explore monetisation opportunities.

Conclusion

The move by Amfi directs attention to how investor data is shared. Any future access will now require AMFI to be the primary point of control for their own information.

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