With the deadline for registration under the SEBI (Investment Advisers) Regulations, 2013 looming in October 2013, Investment Advisers are gearing up to meet the registration, enhanced qualification and certification requirements prescribed by SEBI. However, the array of exemptions provided under the regulations has given space to various distributors who also provide investment advice to weigh the pros and cons before registering as investment advisers.

The regulations mark a key departure from a present commission-cum-fee based structure to an investor centric model. Regulation 15(2) prohibits an investment adviser from charging any consideration from any person other than a client of the investment adviser. This would ensure that investment advice is not marred by vested interests or conflicts of interest of selling the most profitable product rather than the most suitable one.

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Date:September 28, 2015