Compliance Resources Archive - Page 3 of 6 - Association of Registered Investment Advisers

Compliance Resource

Q.32: I am a SEBI RIA, working in an individual capacity. I charge a fixed fee for financial planning service. I keep the contract duration as 1 year. Fee is payable in advance on a quarterly basis.

If total fee payable is Rs. 20,000 and date of Financial Planning Service Engagement Agreement is 1st January, fee is to be paid as follows- Rs. 5,000 shall be due and payable on each of 1st January (for 1st quarter), 1st April (for 2nd quarter), 1st July (for 3rd quarter) and 1st October (for 4th […]

Q.31: I have submitted my application for registration on SCORES, but I am not receiving any reply. The email was sent on scores@sebi.gov.in

I have submitted my application for registration on SCORES, but I am not receiving any reply. The email was sent on scores@sebi.gov.in ? Response: Please ensure the following: 1: Form-B (Authentication for SCORES BY SEBI RIA) filled, printed signed and scan copy emailed to scores@sebi.gov.in and CC to: sebiria@sebi.gov.in, manaswinim@sebi.gov.in 2: Also send the […]

Q.30: We are registered with CKYC (CERSAI, Delhi), NDML KRA (NSDL), and CAMS KRA for doing/modifying KYCs of clients.

All 3 of them offer almost the same functionalities in a different way. All data may be going into the same database. We are confused which platform to use when. Please help us know what functions/processes under each KRA are mandatory from the compliance point of view. Response: CKYC & KRA-KYC – both are […]

Q.29: In April SEBI had said that digital signatures are not acceptable. We have a lot of documents to be signed by clients. All of them cannot by Physical. Can you please let us know, which documents required PHYSICAL Signatures. We will assume rest can be done via Aadhar Based Digital Signature.

Response: Regulation 19(2) of IA Regulations clarifies that a document can be maintained either in physical or electronic form. In case of electronic form, it shall be digitally signed.

Q.28: I am registered as an Individual RIA with SEBI But I operate under a Proprietorship firm name – Good Moneying Financial Solutions, with a separate Bank account.

I do my personal transactions in a personal bank account and all professional transactions (Collecting fees, Office expenses etc.) are in a Good Moneying Bank account. Now when I try registering myself with BSE ASAL, they have both the options while asking for the status – Individual as well as Proprietor. I called them and […]

Q.26: If a non-individual Investment Adviser (private limited company) is sold to a prospective employer is it mandatory

(a) to obtain prior SEBI approval for BUYER and (b) is there a requirement for the current Principal Officer to continue in his position although he is not a part of the new management. Response to Sub-Query-1 Yes, Prior approval from SEBI is to be taken. Regulation 15(11) clearly states that “In case of change […]

Q.25: In case of a non-individual Investment Adviser (private limited company) is it the trades in the company account or personal trading by persons associated with investment advice that is relevant for disclosure.

Response: The disclosure related points relevant to your query i.e. trades in company account or personal trading by PAIA are provided below under 4 categories: Category-1: Mandate regarding ‘Transactions on own account’ According to Regulation 15 of the IA Regulations The following general obligations and responsibilities are mandated: Regulation 15(7): An investment advisor shall not […]

Q.24: We have done our reporting entity registration on the Financial Intelligence unit portal and now we are proceeding for the Principal officer registration process but there is a drop down option to select but we don’t know what to select please assist us with the same.

Response: Select: “Principal Officer” for sure. Subsequently and optionally, if there is a necessity, you could add other users in your organisation like ‘Alternate Principal Officer’ or ‘Supervisor to Principal Officer’ or ‘Technical person’ or ‘Trainer’ or ‘Others’. Disclaimer: Information contained in the responses / answers to the queries posted to ARIA, and related notes […]

Q.23: If possible, can you share drafts of of various policies that are to be maintained by RIA, like AML, code of conduct, etc. We want to cross-check if the policies that we have drafted are complete or there are any points which still need to be included in it.

Response: The drafts of various policies that are to be maintained by RIA, like you mentioned are part of detailed consultative professional engagement. It may in-fact differ RIA to RIA. However, in case of any specific query – please do let us know. — Replied by: ARIA forum expert, CA. Sanjay Kadel (sk@sanjaykadel.com) Disclaimer: Information […]

Q.22: We are registered as a Corporate RIA, under my name, with SEBI. We wanted to understand 2 aspects –

What is FIU and is a registration there mandated by SEBI? If yes, how do we go about that? Currently, is BASL applicable to existing RIAs? Response to Sub-Query-1(a) FIU is an authority setup in India – technically referred as FIU-IND (Financial Intelligence Unit- India). This is in accordance to the Guidelines on Anti-Money Laundering […]