As we know, Alternative Investment Fund (AIF) is a high ticket complex product that requires a thorough understanding by the prospective investors and all the intermediaries involved. NISM, as its capacity building initiative, has developed two certification examinations for the AIF Distributors in Category I & II (Series-XIX-A) and Category III (Series-XIX-B) respectively to improve the quality of the AIF market. These certification examinations seek to create a market-wide knowledge benchmark for persons working as distributors and placement agents in AIF domain in India. The objective of the examinations is to enhance the quality of sales and distribution, thereby enabling superior investor services.

Emphasizing on the quality of the certifications, NISM follows robust development and maintenance processes. The Examination Committee, consisting of industry experts, regulator representatives and domain specialists, plays a vital role in developing a practical and skill-oriented curriculum. Rich and engaging discussions and continuous feedback flow from the committee members help in incorporating relevant content and updating at regular intervals.

Speaking particularly about Series-XIX-A: Alternative Investment Fund (Category I and II) Distributors Certification Examination, the certification provides an in-depth knowledge about the private capital ecosystem, the valuation methodologies, taxation, regulatory aspects etc. In order to make a successful sales pitch to prospective investors, an AIF Distributor is required to be abreast with all the functions/operations of the fund, which are all discussed in the workbook at length. Some of the important aspects discussed in the curriculum are as follows:

• Product suitability in relation to risk appetite and return expectation of the prospective investors has been discussed in detail.

• The purpose and processes of due diligence conducted by the Fund and Investors are thoroughly explained. The fund governance and monitoring fund performances have also been discussed.

• Understanding of the valuation techniques, investment processes and exit strategies adopted by the fund are covered extensively. Familiarisation of these aspects are especially important for the distributors as the prospective investors are interested in knowing about the return profile to expect and exit routes available to them.

• As the AIF industry is evolving at a rapid rate, keeping abreast with the newer regulatory developments are a must for any distributors. The exam covers all the relevant regulations/ circulars along with their periodic updates, required for product marketing and answering investor queries.

• Provides a macro-level understanding of the various legal documentations involved in on-boarding of a prospective investor.

• Pre and Post commitment functions and appropriate code of conduct for distributors are being discussed in detail. Important aspects of a sales pitch and key constituents of distribution kit are enumerated.

In a nutshell, the Series-XIX-A: Alternative Investment Fund (Category I and II) Distributors Certification Examination provides all the necessary information relating to product and regulatory aspects for efficient performance by an AIF Distributor.

Further details about the examination is provided at: click here