Mutual fund distributors are no longer allowed to use nomenclature like ‘independent financial advisers’ (IFAs) and ‘wealth managers’ without registering with SEBI as RIA. The decision was taken at the SEBI board meeting held today in Mumbai.
SEBI has amended SEBI Investment Adviser Regulations after considering issues in all four consultation papers and public comments. Here are the other key changes
- Individual RIAs cannot offer distribution services to their clients
- RIAs can offer execution services through direct plans in mutual funds
- SEBI will bring more clarity on fee payment and put a cap on upper limit of fees charged to clients
- The regulator will clarify net worth, qualification and experience and so on