SEBI issues norms for investment advisors

Our Bureau Mumbai | Updated on September 23, 2020 Published on September 23, 2020

SEBI has issued norms for investment advisors in financial markets. It has capped the fees of investment advisors at 2.5 per cent of the total money handled or assets under advice per client. However, most advisors charge far less.

It has specified client level segregation of advisory and distribution activities. Many investment advisors are mutual fund distribution agents as well. Sometimes this creates a conflict of interest. Clients cannot have advisors who are distributors of financial products, SEBI has said.

There has to be a proper agreement between he client and advisor, the broad specifics of which have been provided by SEBI. Non-individual advisors having fewer than 150 clients will have to register with SEBI, and will also have to undergo audits.

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Published on September 23, 2020
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