Becoming an investment advisor is about to get a lot easier

livemint.com:

₹1 lakh for up to 150 clients, ₹2 lakh for 150-300 clients, ₹5 lakh for 300-1,000 clients and ₹10 lakh for more than 1,000 clients. RIAs and RAs presently charge fees under two modes—assets under advice (AUA) mode (limit of 2.5% of AUA per annum per family of client) and fixed fee mode (limit of ₹1,25,000 per annum per family of client). If they wish to change the mode, the same can be effected only after 12 months since the last change of mode.

Also Read: Sebi tweaks stocks’ F&O norms, curbs use of finfluencers Sebi proposed to do away with this method and give flexibility to RIAs and RAs to charge fees without a minimum period restriction. Sebi has permitted individuals and partnership firms to seek registration for providing services as both RIAs and RAs, subject to compliance with rules and regulations. The paper proposed to demarcate the scope of investment advice of an RIA to a specific product belonging to an asset class falling within the regulatory purview of Sebi or other financial regulators.

Sebi also proposed that RIAs and RAs using artificial intelligence tools for servicing clients will be required to disclose the extent of use of these tools to their clients. Additionally, the responsibility of data security and compliance with regulations would lie solely with RIAs and RAs. Sebi said only those who provide research services “for consideration", which means any form of economic benefit, will be considered research analysts.