Shradha Rajpal on Tue, Oct 2nd, 2012 8:32:56 pm
Thanx a lot, very useful article,
Sanjiv Singhal on Fri, Sep 14th, 2012 6:01:42 pm
This should be seen in line with other steps being taken by SEBI - most recent being provision for different classes of units with different expense ratios. It appears that groundwork is being laid to allow for customers to choose different channels with their attendant benefits and costs. Accordingly IFAs will have to choose which model to adopt.
Ajit Purohit on Wed, Aug 29th, 2012 6:21:57 pm
Though the themes are good, there are many unanswered questions, for which the detail guidelines are expected from SEBI.
Uma Shashikant on Sat, Aug 25th, 2012 2:52:15 pm
Dear Mr. Vyas, the regulations have to still be announced. But what the preview in the blog shows is that while IFAs may be able to continue to sell MFs and other products, in order for them to be able to do both advisory and distribution businesses, they may have convert to a registered corporate. That is an advantage banks and institutional advisors already have, it would be easier for them to offer both distribution and advisory to their clients.
s v vyas on Sat, Aug 25th, 2012 12:37:32 pm
Dear Uma ,there is complete diffrence in email hilighted and actual article , in article sebi only clarify stand on advisory business not a matter of Banks and institutional distributors have been favoured over IFAs,
Uma Shashikant on Thu, Aug 23rd, 2012 4:07:11 pm
The IFAs currently operate as sole proprietorships and most as geographically concentrated entities. They earn an upfront commission and trail on the mutual fund products they distribute. The new investment advisor regulations that have been proposed (not yet notified) requires registration as a company, if the intent is to provide both distribution and advisory services. Such company should have a distinct set up for advisory services. This requirement can be readily complied by banks and corporates. But individual advisors will have to consider their options between distribution and advisory and the costs associated with it. There is no need to get alarmist about it, or blame Sebi, as these regulations may bring about much needed clarity on roles advisors like to play.
s parasuraman on Wed, Aug 22nd, 2012 2:09:16 pm
I saw your mail and the notification.Nowhere,it is mentioned that banks and corporates were preferred over ifas.Don't draw your own conclusions and confuse me.Already,much has been said and done by sebi against the IFA's.
Srinivasan B on Wed, Aug 22nd, 2012 11:02:05 am
Yes - there appears a complete transformation required even to survive. But also a lot of unanswered questions - may have to wait for the detailed guidelines - especially the compliance requirements as well as capital/net worth requirements.