MFDs across the country are seeking clarity on ‘keywords’ that can be used with their ARN or entity name to comply with the new SEBI RIA regulations.
Earlier this week, SEBI has asked MFDs using nomenclature like independent financial adviser, IFA, wealth adviser or any other similar name like independent financial intermediary will have to incorporate changes to their ARN by September 30, 2020 or their company name by December 31, 2020.
In this regard, Chennai MFD Association Independent Financial Professionals and Association (IFPA) has written to AMFI to issue clarity on keywords that can be used to comply with the new regulations.
IFPA has requested AMFI to issue a complete list of suffixes and prefixes which are allowed and a list of keywords that cannot be used to comply with the SEBI norms. The association has also urged AMFI to set up a help desk so that MFDs can check the appropriateness of the new name before applying for name change with ROC.
Vivek Karwa, President, IFPA told Cafemutual that the name change involves both time and money and hence the association requested AMFI to issue clarification with respect to nomenclature. He said, “We have been receiving queries from MFDs if they can change company name from say ABC Financial Advisor to ABC Financial Consultant. Also, MFDs will be required to give three options to ROC. In addition, the entire process to incorporate a name change costs Rs.35000-Rs.40000. If MFDs do not have clarity, they will have to make such changes again to again to comply with the SEBI norms.”
