Most IFAs tell Cafemutual that they would prefer to continue to operate on their existing models while others will wait and watch the situation
SEBI’s Investment Advisers regulations have laid out comprehensive rules for intermediaries wanting to becoming advisors. Most IFAs Cafemutual spoke to would prefer to maintain status quo. Among the most frequently cited reasons was that if intermediaries opt to become Investment Advisers, they have to forego future trail/upfront commission, which constitutes a major form of revenue. Opting to operating on the current model will allow intermediaries to charge fee as well as earn revenue from AMCs.
Below is a table with a preliminary list of important points to ponder:
Would you become an adviser or agent? Let us know.
