MF News Distributors cannot call themselves IFAs or wealth advisor: SEBI

Distributors cannot call themselves IFAs or wealth advisor: SEBI

In addition, SEBI has asked individual RIAs not to offer distribution services to their clients.

Sridhar Kumar Sahu and Nishant Patnaik Feb 17, 2020

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

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36 Comments

VIJAY DEORE · 4 years ago `

I think , any ARN holder who Successfully Completed NISM - Investment Advisor - Level I and II should be Allow to use words which SEBI restricting. Thought for Discussion.

Manish KHANDELWAL · 4 years ago `

I am unable to understand that if distributor is not allowed to advise then why renewal of license through training and examination is required?
Why fee is charged for renewal?
What type of training is given to investors by SEBI that SEBI is satisfied that they can invest directly and no advisor is required?
Is there any checking system available for investors?
Or SEBI feels investors have there own money and let them damage themselves?
Or just by giving caption that MUTUAL FUND INVESTMENT IS SUBJECT TO MARKET RISK , responsibility of SEBI is over?
Just think......

Manish KHANDELWAL · 4 years ago `

vikram · 4 years ago `

Why SEBI is not giving their suggestion to Govt for providing direct tax and indirect tax to save public money. Direct Tax should be below indirect tax and it should not include salaries of govt officials. SEBI also putting a cap on the salaries of SEBI & AMFI officials to save public hard earned money. There should be a one rule for everyone. There is no Cap on salaries & other benefits of SEBI & other govt officials. They are continuously increasing their salaries and reducing the income of distributors. On whose benefits they are working, they are cheating indian public and earning money by increasing their salaries and taxes on public.

Dharmesh Makwana · 4 years ago `

Client not know which scheme is better for him and Distributor can't advise him and also RIA can't advise for regural plan and role of distributor only robot without prescription client arrive and purchase scheme from Distributor ,So ultimately client suffer

Shubham sharma · 4 years ago `

the best way to resolve ease of doing business is Not let anyone to do business

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