New compensation norms churn MFS

Mutual fund (MF) industry staffers are looking to make a switch to insurance, private equity, and alternative investments funds (AIF) segments as the new compensation rules kick in this month. Industry players say the highest churn is happening at the junior level. This despite market regulator Sebi saying those below 35 years — will have to invest 10 per cent in the first year and 15 per cent in the second year in their schemes, instead of 20 per cent for other employees. Industry players say many feel that the new norms are authoritative, prompting some to make a switch to other segments of the financial sector.