Finally Financial Planners & Investment Advisers are regulated in India

Investment Adviser Vs AgentThose were really painful days when investor called everyone dealing in Financial Product as Financial Advisor or Investment Adviser or Financial Planner. So people like me who have invested time and money to establish their practice with an aim to make clients life better were called, understood and believed to be synonym to someone who is an government employee, had affiliation in the name of wife who has entered this field to enjoy foreign trips, free meals in 5-stars and exotic Diwali gifts. When I poked details, it was grey area as regulators had no provisioning to “mark” an agent against adviser. They have guidelines to differentiate between Bank and a Non- Banking Financial Company or Mutual Fund Manager and a Pension Fund Manager but no regulations for us….. Until 20th Oct 2013….

Image courtesy of kibsri at FreeDigitalPhotos.net

Now Apple will call, conduct and hopefully taste as an Apple

SEBI came with Investment Adviser Regulation in Starting of 2013 – they gave 6 months to existing advisors/financial planners for registration. From 21st Oct 2013 no one can claim himself as Financial Planner or “Investment Adviser” or promote such services – if he is not registered with SEBI or applied for registration before 21st Oct 2013. So finally, life of investors will become simple – single question may answer lot of things –

Are you SEBI Registered Investment Adviser?”

Who is Investment Adviser – SEBI’s definition?

“Investment Adviser” means any person, who for 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, by whatever name called.

SEBI included Financial Planning in the definition of “investment advice”. And important to note, they are not only regulating word “investment adviser” but act of advice, clearly mentioned “whatever name called” so be it “Wealth Manager, Life Planner, Investment Specialist, Retirement Planner, Wealth Coach, Financial Planner or WHATEVER creative name that you came across”. There are few exceptions but none for Financial Planners or any other serious adviser.

Infographics – Key features, Code of Conduct & how it’s beneficial for you

SEBI Rergistered Investment Adviser India

We have already applied for registration as Investment Adviser with SEBI – as a body corporate (Ark Primary Advisors Pvt Ltd). If your adviser is not registered with SEBI – ask him to do as soon as possible because ultimately this is  going to benefit you as a client.

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{ 6 comments… add one }
  • srinivasu October 22, 2013, 12:11 PM

    dear all,
    Thanks for your good work. But in my personal opinion these good advice/services reach only to certain, net savy investors. T he manufactures of these so called financial products (wealth creators ), always onestep ahead of any regulator.
    let us say, the NEW innovative ulips from all life insurance companies ended as a great tragedy for both the investors(policy holders) and agents like me..even many worldwide experienced life insurance co.. also suffered with huge losses.
    In my city where a live, these co. shifted to non posh areas, and cut all expences for cost control.
    look how banks mis sold these products
    anyhow time and experience (including others ) teach all.
    thanks and keep gooing.

  • Avijit Basu October 22, 2013, 2:23 PM

    Knowledgeable and informative. Thanks for the info,

    Rgds,

  • rajivahuja October 22, 2013, 3:30 PM

    This is welcome news for genuine investors.

  • Indrajeet Singh October 23, 2013, 12:53 PM

    Dear Sir
    I have a question. I am an ARN holder & selling mutual funds & insurance. Is it necessary for me to register with SEBI? If yes, then what is the procedure & how can I proceed?
    with regards

  • Gayathiri SM October 25, 2013, 1:04 PM

    Hi Hemanth,

    This is awesome news. Is there a way to get the list of registered SEBI Investment advisors, like we get thet list for FPSB Financial planners in their website?If there is an option, that would be handy and good to have.

    Thank you,
    Gayathiri.

  • Annapurna November 1, 2013, 5:59 PM

    Am a bit skeptical about how effective this would be. In the past we have had AMFI certification, ARN registration, CFP certification etc for distinction, yet India remains a broker driven market..even undergraduates sell mutual funds and insurance products here, and I feel it is more about marketing yourself as a financial planner and having the right connections which work for this business.

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