Become a member. Click the link in the email and verify your account. Forex Forex News Currency Converter. Hate ads but would like to support the site? Enter Mobile Number. This opens Investment Adviser registration form A. Traditionally, individual agents have been the major distribution channel for the sale of financial products.
March 11, 2011 [Update Currently in Progress]
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Last Updated on September 14, at am. The current post is a sequel. As per this regulation, no person can work as an investment adviser unless he is registered as an investment adviser with SEBI; and a registered adviser cannot receive remuneration or compensation in any form from any person other than the client being advised. This essentially means that an investment adviser must work on a fee-only model of advisory in India. This regulation was heavily criticized by the adviser community which was mostly working on commission based advisory model till then. But slowly this model began getting talked about over social media and elsewhere and many investors started seeking advice from fee-only advisers. It turned out that investors are willing to pay a fee for an unbiased advice even in India.
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Last Updated on September 14, at am. The current post is a sequel. As per this regulation, no person can work as an investment adviser unless he is registered as an investment adviser with SEBI; and a registered adviser cannot receive remuneration or compensation in any form from any person other than the client being advised. This essentially means that an investment adviser must work on a fee-only model of advisory in India.
This regulation was heavily criticized by the adviser community which was mostly working on commission based advisory model till. But slowly this model began getting talked about over social media and elsewhere and many investors started seeking advice from fee-only advisers. It turned out that investors are willing to pay a fee for an unbiased advice even in India.
Some of the early entrants into this model became successful and that started attracting more and more people to it. The fee-only model removes inherent biases of commission-based advice and investors can be better served with this model, but it is tougher to execute compared to the commission-based model. Not all fee-only advisers attract business. Online business is skewed towards some established advisers and a few others who have better online visibility. Successful fee-only advisers are earning more than most people think they earn, while many others are struggling to get a steady flow of business.
Selling is an inseparable part of the advisory business, be it commission based or fee-only. Fee-only advice is a product that needs to be sold. You either have to figure out ways to attract online business or you have to sell it offline. If you think that you can become a successful RIA because you have good knowledge of personal finance and investing, you are probably approaching it from the wrong direction.
The primary thing that determines the success of an RIA is how well he can sell himself as a fee-only adviser. Expertise comes distant second from a pure revenue point of view. So, think hard before taking the plunge. The registration process is completely online. There are three steps in the registration process. Payment can be made by internet banking or debit card. It will direct you to the payment gateway. The application is to be submitted within 14 days of receiving login id and portal activation link mail, failing which self-registration expires and application fee is not refunded.
This opens Investment Adviser registration form A. There are 7 sections in the application form as mentioned sebi investment advisor regulations. This consist of general information like name, registered office address residential address can be given in case of individual applicantscorrespondence address, address of principal place of business, details of the contact person, details of registration if applicant is registered with SEBI, RBI, IRDA or PFRDA in any capacity e.
In addition to this you have to write about your present and past activities majorly related to investment and personal finance; like MF AMCs you are empanelled with, your MF AUM, insurance companies you are associated with and other relevant activities.
In this section you have to upload self-certified copies of identity proof, address proof, supporting documents in respect of qualification, supporting documents in respect of experience like AMFI registration card, insurance agency license. Here is a sample of net worth certificate. In this section, you have to upload a pdf copy of your proposed business plan that includes the advisory model you will work on e. Here is a sample business plan. In addition to the business plan, you also have to mention the type of products or securities on which investment advice is proposed to be rendered.
Here is a sample. You also have to upload pdf document mentioning the process you will follow for risk profiling of clients and for assessing the suitability of advice. In this section, you have to give details of office space, office equipment, furniture and fixtures, communication facilities and softwares or online tools you will use for undertaking investment advisory services. In addition to this, you have to upload documentary evidence of the office space.
You can prepare a document with pictures of your office space along with an electricity bill or rental agreement in case of a rented office.
This is sebi investment advisor regulations I had submitted for documentary evidence of office space. You also have to upload the declaration of necessary infrastructure to effectively discharge the activities of Investment Adviser. Here is the sample of this declaration.
You can upload scanned copies of self-signed declaration if you do not have digital signature. Up to 2mb file can be uploaded.
This section is relevant for body corporates who propose to offer distribution or execution services to its clients through a subsidy or separate identifiable department or division. Independent applicants have to upload a declaration that they will not carry out any distribution and execution services post-grant of registration of investment adviser by SEBI.
Here is a sample of this declaration. Here are samples of these two declarations. In this section you have to upload pdf copies of declarations that you currently comply with the certification and qualification requirements under section 7 of SEBI Investment Advisers Regulation, and the declaration that you shall ensure that you will comply with the certification and qualification requirements under section 7 of SEBI Investment Advisers Regulation,at all times. You then have to tick following declaration statements and submit the application.
After submitting the application form on SEBI portal, you will receive following mail with a pdf copy of the application form you submitted on the portal. You have to take a print of the application form attached in the mail, sign it and submit or courier it to SEBI office along with self-attested documents and declarations you uploaded on SEBI portal.
You are asked to fulfil deficiencies if any in the application. If there are no flaws in the application, the first response from SEBI is to inform you that your registration is approved. RIA certificate is issued within 2 to 3 working days of paying the registration fee.
Scanned copy of RIA certificate is mailed to you and a hard copy is couriered to your address immediately after RIA certificate is issued. Here is more information about Swapnil. Here is how you can grow your money smartly. That was a comprehensive answer.
Thanks a bunch. Is it not too short?! Advocates done 5 year BA LLB integrated course includes as a professional under the parameters of sebi. Sir, I am looking to register as an RIA. Can you help enlighten on the below point? Hey I wanted to know if a person in doing job in manufacturing sector but has advices his company on matters reletaed to finance like investing in equity, MF etc can he become an RIA. Thank you very much your reply will be very much helpful to me.
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Do share if you found this useful. Is there any recurring expenses to keep the registration active? Thank you sir, Your step step guide for sebi registration for IA is very helpful.
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By Reena Zachariah. Thank you very much your reply will be very much helpful to me. In addition to the business plan, you also have to mention the type regulafions products or securities on which investment advice is proposed to be rendered. In addition to this, you have to regulationns documentary evidence of the office space. Share this Comment: Post to Twitter. If you sebi investment advisor regulations that you can become a successful RIA because you have good knowledge of personal finance and investing, you are probably approaching it sebi investment advisor regulations the wrong direction. Is it not too short?! Scanned copy of RIA certificate is mailed to you and a hard copy is couriered to your address immediately after RIA certificate is issued. Become a member. You also have to upload the declaration of necessary infrastructure to effectively discharge the activities of Investment Adviser. Dos and Don’ts every MF investor should know while arvisor with an investment adviser. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. In this section you have to upload pdf copies of declarations that you currently comply with the certification and qualification requirements under section 7 invesfment SEBI Investment Advisers Regulation, and the declaration that you shall ensure that you will comply with the certification and qualification requirements under section 7 of SEBI Investment Regulatiobs Regulation,at all times. Here is a sample of this declaration. To see your saved stories, click on link hightlighted in bold.
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