The Association of Registered Investment Advisers (ARIA) recently launched an investor support helpdesk ariatrulycares@aria.org.in under its #ARIATrulyCares initiative.
ARIA aims to guide investors’ families and fellow financial advisors and MFDs on asset transfer process and reconstruction of financial records. The initiative also advocates standardisation and simplification of asset transfer process, for which ARIA released its first investor advocacy white paper - ‘Reimagining Nominations - Making Succession Smoother and Simpler’.
The whitepaper highlights the existing nomination process and recommends amendments to current practices. Pramod Rao, Group General Counsel, ICICI Bank has written the whitepaper with inputs from ARIA.
‘One key element, which appears to be excessive or contributing to avoidable friction is requirement of attestation of nominee’s signatures,” said the whitepaper. Currently, transmission of up to Rs. 2 lakh require bank manager’s attestation, while transmission above Rs. 2 lakh requires the attestation by a Notary Public or Judicial Magistrate First Class (JMFC). Bank passbook, bank statement, death certificate and other documents also require attestation. The whitepaper recommends removing such extensive provisions.
Here are a few recommendations:
- Simple, common nomination form/e-form across financial assets
- Single scrip/folio/security level nominations
- Increase in the current limit of three nominees
- Deferment of vesting age in case of nomination of minors
KV Kamath, Former-President, New Development Bank, said, “#ARIAtrulycares is a commendable initiative by ARIA in these difficult times, when it is really crucial to help people who after losing a loved one are struggling to seek assistance in financial matters.” He has written the foreword for the white paper and urged SEBI to consider the recommendations.
Pramod said, “This white paper attempts to outline policy objectives, focus on nomination facilities agnostic and proposes measures for enhancing, improving and upgrading these facilities.”
Commenting on the launch, Lovaii Navlakhi, Chairman, ARIA said, “ARIA recognises the important role it needs to play in ensuring the development of a robust support ecosystem for investors in India and is thankful for the encouragement and support of thought leaders like Mr Kamath and Mr Rao.”
“Together, we will make investment rewarding and convenient for India”, added Lovaii.
