SEBI has granted Investment Adviser registration certificates to 11 distributors which include individuals and entities. Cafemutual had earlier reported that three people had received Investment Adviser Certification from SEBI.
While ICICI Securities, SenSage, Valuefy and IFMR are the four corporate entities which have received SEBI Investment Adviser certificate so far, the rest are individuals. The Chennai based company - IFMR Rural Finance Services is AMFI registered ARN holder. Edelweiss and Principal Retirement Advisors have also applied with SEBI.
While advisers are allowed to provide execution services through a separately identifiable division or subsidiary, some advisers plan to stick to pure advisory model and will not provide execution services. Prakash Prahraj, Kavitha Menon and Jatin Thukral plan to operate purely as investment consultants. They are not registering with AMFI through a subsidiary to get trail commissions.
“I have been a financial planner all through my career. I have a limited set of clients whom I provide consulting services. I don’t plan to provide execution services,” says Kavitha Menon, a Mumbai based adviser.
“SEBI’s recognition gives you a professional edge and helps gain the trust of people. I recently gave a presentation in Volkswagen. I was expecting that 25 people will attend but 51 people showed up. I recommend my clients to buy directly from the fund houses. I only provide them financial planning and review services and charge them a fee,” says Prakash Praharaj.
Jatin Thukral, a Delhi based SEBI registered Investment Adviser and CFA Charter holder advises 26 HNI clients. “I have to follow CFA rules so I can’t take commissions from fund houses. SEBI registration distinguishes you from the rest and gives credibility. However, we have to follow a lot of compliance now.”
People who were acting as investment advisers before the commencement of IA Regulations have to apply for registration before October 21, 2013.
“No person shall act as an investment adviser or hold itself out as an investment adviser unless he has obtained a certificate of registration from the Board or he is specifically exempt. Provided that "a person acting as an investment adviser immediately before the commencement of these regulations may continue to do so for a period of six months from such commencement or, if it has made an application for a certificate within the said period of six months, till the disposal of such application.” stated a SEBI press release issued today.
Click here to see the list of advisers who have received SEBI license.
