Under new RIA norms, all your financial needs won't be under one roof

High net worth will ensure only serious people will be in the business of advising clients

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The new regulations, which aim to curb conflict of interest arising out of clients being pushed to buy products by the advisor who would also gain a commission on the products, come into effect from October 1

Sarbajeet K Sen

4 min read Last Updated : Jul 10 2020 | 2:47 AM IST

Come October 1, your financial advisor will not be able to provide you investment advice. Tightening the regulations for registered investment advisors (RIAs), the Securities Exchange Board of India (Sebi) on July 3 has notified changes to the Sebi (Investment Advisers) Regulations, 2013, to bring in segregation of investment and distribution services.

It specifies that corporate (non-individual) advisors will be allowed to offer both advisory and distribution services by floating two separate legal entities with clear demarcation. No client will be offered both services.

An individual RIA can either be an advisor or distributor, never both. However, the RIA can offer transaction

Topics : Registered investment advisors Personal Finance Sebi