Official Duties of Investment Advisers

SEBI notified the SEBI (Investment Advisers) Regulation, 2013 in January 2013 with a view to regulating the activity of providing investment advisory services in various forms by independent financial advisors, distributors, banks, commodity tips providers and other such entities. The said Regulations became effective from April 2013.

KYC compliance: An investment advisor shall follow Know Your Client procedure as specified by SEBI from time to time.

Code of Conduct: An investment adviser must abide by the Code of Conduct as specified in the Third Schedule of the Investment Adviser Regulations.

Reporting to SEBI: The investment adviser must file periodic reports or information to SEBI as may be required from time to time and take prior approval from SEBI if there is a change in control of the investment adviser.

Certification and Qualification: It shall be the responsibility of the Investment Adviser to ensure that its representatives and partners comply with the certification and qualification requirements stipulated by the Investment Adviser Regulations at all times.

There are specific areas in which an investment adviser needs to put systems and procedures in place in order to comply with the responsibilities cast by the Regulations. The advisory must carry out above duties apart from providing stock recommendations.