Questions Archives - Page 5 of 5 - Association of Registered Investment Advisers

Compliance Resource

Q. 4: I am an individual RIA. I wish to convert to a corporate RIA. I have been told that I can constitute a partnership with my wife and apply for a Firms RIA registration. SEBI takes Individuals & Partnership as one, hence I can save registration + BASL membership cost. Although net worth requirements will be like corporate RIA. I can also have an RIA practice & ARN as one partner may do RIA business & second can take MFD license.

Is this OK? Or I should aim to make a company/LLP & apply for Corporate RIAship. I wish to keep both businesses with client segregation as ok by SEBI regulations. Request your direction. Response: Clarity-1. Cost : You are right in saving cost by going for Partnership firm. In SEBI and BASL the fee structure is […]

Q.3 : We, a SEBI Registered partnership LLP firm, titles – Advantage Financial Planners LLP, FORMED IN 2013 and rest in 2014, have been following all compliance related since the beginning. HOWever, recent new rules, like issued in July 2020, need a carefully listed checklists. Hence it becomes necessary to have the right list and timing for submissions.

Please provide a complete list of all compliance related documents to be kept ready A calendar of month wise – what is to be submitted when Formats for these documents Link to respective websites Necessary precautions to be taken Response: ARIA has already posted detailed IA COMPLIANCES REFERENCER ver. 1.0 dt. 25-Apr-2021 (pdf document) authored […]

Q.2 : There seems to be no clarity on the BASL membership. The BASL website is bare and lacks proper instruction and guidance. Many media and third-party sources have conflicting information on the same.It would be great if someone could give some straight answers on BASL membership, how to go about it, the forms, contact person, documents required, etc.

Response: Background: BASL = BSE Administration and Supervision Ltd. (BASL) IAASB = Investment Adviser Administration and Supervisory Board (IAASB) SEBI has recently granted recognition to BASL to act as IAASB for 3 years from 1-6-2021. — under existing IA Regulations (specifically Regulation 14) Clarity: Membership of BASL is mandatory. Last date for existing RIAs […]

Q.1 : Suppose a person has got registered as an Individual RIA and not commenced any business at all either because he has not fully made up his mind or kept it as an enabler should it be required in future, what are the obligations if any on him in terms of compliance, reporting, returns, etc. as there is no activity that has happened or expected to take place.

Response: Even though a person has registered as RIA but has not done any related activities, the SEBI IA Regulations and SEBI IA Guidelines are applicable. Few instances of applicable compliances, are highlighted below: Display of Details on website, stationery, etc. — Name of IA, Type of Regn., Contact details, SEBI office address, etc. as […]