Mumbai: Wealth managers would need to comply with stringent rules as RBI and SEBI come together to put in place a comprehensive rule book to regulate the estimated $1-trillion wealth management industry, according to a PTI report carried by newspapers. Wealth managers are primarily private banks managing portfolios of high net worth individuals (HNIs). Wealth managers came into the limelight after the Rs 460-crore Citibank fraud rocked the country last year. Market watchdog SEBI and RBI will be given punitive powers to keep a check on the compliance of these rules.
The government is seeking feedback from commodity regulator Forwards Markets Commission (FMC), Pension Fund and Regulatory Development Authority (PFRDA) and insurance regulator Insurance Regulatory and Development Authority (IRDA) on this matter, say media reports.
The rules are being given final touches and will be issued under the high level umbrella body Financial Stability and Development Council (FSDC) chaired by finance minister Pranab Mukherjee. FDSC was set up in December 2010 to replace the former High Level Coordination Committee on Financial Markets.
