alleryStart learning →The Compliance Officer of an AMC is required to report directly to the
AHead of Sales
BChief Financial Officer
CHead of the AMC
DHead of Fund Management
Answer & Solution
Correct answer: C. Head of the AMC
1. Independence of the compliance function is critical for investor protection.
2. To secure that independence, the Compliance Officer reports directly to the head of the AMC.
3. Any non-compliance must be flagged immediately to the Trustees.
4. Reporting into sales, finance or fund management would compromise the check.
_Source: NISM Series V-A: Mutual Fund Distributors Workbook (Dec 2019), Ch 3 "Legal Structure of Mutual Funds in India", §3.3.1_
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