Context:
SEBI has made rules for independent advisers and research analysts more transparent and investor-friendly.
Independent advisers
Independent advisers are professionals who provide financial guidance and services without being affiliated with a large financial institution. They are also known as independent financial advisers (IFAs).
A research analyst
A research analyst is a professional who collects, analyzes, and interprets data to help businesses make informed decisions. They are often quantitative, analytical, and logical, and are good at managing numbers and data.
Key Features:
- Deposit Requirement
- Deposit requirement is linked with the maximum number of clients served in the previous financial year. independent advisers (IAs): 30 June, Research Analysts (RAs): 30 April.
- Registration flexibility
- RAs are allowed to be certified as IAs, ensuring separation between advisory and research functions.
- Scope of Advice
- IAs can give investment advice that is Sebi-regulated in securities. They are allowed to provide holistic financial planning for non-Sebi products.
- Implementation deadline
- 30 April.
- Revised Fee Structure
- IAs can change the mode of fee charging at any time, without the previous 12-month waiting period.
- AUA fees are capped at 2.5% per annum per family across all services.
- The maximum charge under the fixed fee is now raised to ₹1,51,000 per family per year against ₹1,25,000 till now.
