Why should you deal with SEBI registered Investment Advisor?
It is important to understand on ‘Why should you deal with SEBI registered Investment Advisor? The investment advisory services are regulated by SEBI – Securities and Exchange Board of India, through its Investment Advisor Regulations 2013. Before the enactment of this regulation, the investment advisory services were not regulated in India in a structured way. The security market regulator has found that there is a need to regulate and develop this space. Let us understand more about this.
What is Investment Advice and Financial Planning?
This regulation defines “financial planning” as an analysis of clients’ current financial situation, identification of their financial goals, developing and recommending financial strategies to realise such goals. As per this regulation, “investment advice” means advice relating to investing, purchasing, selling or otherwise dealing in securities or investment products and advice on investment portfolio containing securities or investment products, whether written, oral or through any other means of communication for the benefit of the client and shall include financial planning. The regulation does not consider the investment advice given through newspaper, magazines, any electronic or broadcasting or telecommunications medium, which is widely available to the public.
Who is an Investment Adviser?
“Investment adviser” means any person, who for a consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons and includes any person who holds out himself as an investment adviser, financial advisor, financial planner, wealth manager or any other name.
Why should you deal with SEBI Registered Investment Advisor?
The registered investment advisers have qualification, certification and experience required by the regulation to ensure that the customers get quality advice. They also check the suitability of the investment advice, carry a risk profiling of the client as per the guidelines. The registered advisers are obliged to act in a fiduciary capacity towards their clients and shall disclose all conflicts of interests as and when they arise. The execution and the investment advisory services are to be segregated to reduce conflict of interest, if any. All these measures are client-centric and would bring transparency in the process of investment advice. Considering these facts it is always recommended to seek advice from a SEBI registered Investment Advisor only.
What about Financial Recommendations?
Whenever a recommendation is given to a client to purchase of a particular complex financial product, the investment adviser is required to ensure that such recommendation or advice is based upon a reasonable assessment that the structure and risk reward profile of financial product is consistent with clients experience, knowledge, investment objectives, risk appetite and capacity for absorbing loss. This helps the clients to get the right investment advice, fit to their requirements.
Grievance redressal
When you avail the services of a registered investment adviser, you also get the option to approach the grievance redressal cell in case you feel that the service rendered to you is not up to the mark or if you feel there is an issue with the advise. There is a grievance redressal mechanism provided by the regulator. Clients can report to the regulator in such cases.
Where to find a Registered Investment Adviser?
The complete list of registered investment advisers is available on the SEBI website that one can check and contact to get an investment advice. You can also sign up to www.arthayantra.com to get complete financial planning and investment advice. ArthaYantra is a SEBI registered Investment Advisor and provides these services online.
General FAQ
What is SEBI?
SEBI stand for Securities and Exchange Board of India. It is the security markets regulator in India. It was established on April 12, 1992 in accordance with the provisions of the Securities and Exchange Board of India Act, 1992.
Who is a Registered Investment Adviser?
Any Individual or entity that is registered with SEBI as Investment Advisor is considered as a Registered Investment Advisor.
What is Investment Advise?
Investment advise means advise relating to investing, purchasing, selling or otherwise dealing in securities or investment products and advice on investment portfolio containing securities or investment products.
What is Financial Planning?
Financial Planning is defined as an analysis of current financial situation, identification of financial goals, developing and recommending financial strategies to realize such goals.
Where to find a Registered Investment Adviser?
The complete list of registered investment advisers is available on the SEBI website
Why should you deal with SEBI Registered Investment Advisor?
It is always recommended to deal with SEBI registered Advisor as they are qualified, follow the process laid by the regulators and there is grievance redressal mechanism provided by SEBI while dealing with such advisers.
