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SEBI has directed non-individual Registered Investment Advisers (RIAs) to submit a compliance certificate declaring that they follow client level segregation i.e. advisory clients at a family level cannot work with the distribution wing of the same company.
Such a declaration has to be approved by any auditor and submitted within 6 months of the end of the financial year.
SEBI said, “The IAs shall maintain on record an annual certificate from an auditor confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations. Such annual certificate shall be obtained within 6 months of the end of the financial year and form part of compliance audit, in terms of Regulation 19(3) of the IA Regulations.”
Further, the regulator has also asked all RIAs to submit periodic reports within 30 days from the end of the reporting period.
These reports have to be submitted to the Investment Adviser Administration and Supervisory Body (IAASB).
