SEBI may take some more time to finalize RIA regulations.
On the sidelines of the eighth CII Financial Markets Summit held recently in Mumbai, Ajay Tyagi, Chairman SEBI told Cafemutual that the SEBI board members are internally discussing on fee vs commission issue.
Tyagi said that the proposals are under consideration and nothing has been finalised yet. “Nothing has been finalised on the proposals that the market regulator has made on the consultation paper on investment advisors,” he said.
This is in wake of SEBI’s consultation paper on investment advisors in which it has proposed to segregate fee-based advisors and distributors who receive commission from AMCs.
G Mahalingam, Whole Time Member, SEBI had said at a recent industry event, the market regulator has been evaluating global practices in the advisory business before finalizing the RIA regulations. He said, “There are plenty of questions on fee vs commission. In fact, SEBI had to come out with the consultation paper on RIA regulations twice. Because the subject is complex and investors’ interest is at stake, this is taking a little more time. We are actually studying what is happening in other jurisdictions. UK, for example, has come out with the report on fee vs commission and they have clearly put forth the impact of this shift. We are closely looking at it and seeing what fits best for India.”
