Latest updates by senior Officials of SEBI suggest that it is mandatory for a Financial Planner/Advisor to register as an RIA. Becoming a SEBI RIA means a change in the way an agent/distributor/broker would work and there shall be a total change in the revenue model and business practices.
It is not an easy change, because they all must be aware that commission based selling is no longer acceptable for a SEBI RIA.
Fee only advisory is not the easiest market to flourish unlike distribution business where a “sell & run” model can survive and hence would mean that all persons who act as distributors/brokers/agents must have Post Graduate Degrees in Finance and must also posses technical expertise going forward to remain in the market……else they shall perish!!
1. Mandatory Qualification
An individual registered as an investment adviser under these regulations and partners and representatives of an investment adviser registered under these regulations offering investment advice shall have the following minimum qualifications, at all times:
2. Additional Certification
Apart from obtained mandatory qualification as mentioned above, an individual registered as an investment adviser and partners and representatives of investment advisers registered under these regulations offering investment advice shall have, at all times, a certification on financial planning or fund or asset or portfolio management or investment advisory services: