Regulation of Investment Advisors
Ninad RamdasiCategories: DSIJ_Magazine_Web, DSIJMagazine_App, Editorial, Letter to Editor, Letter to Editor
The cover story published in the previous issue has correctly caught the prevailing question in every investor’s mind focusing on whether to allocate funds to the equity asset class in such a volatile environment.
The cover story published in the previous issue emphasising on the importance of investment advisor is really insightful. Can you throw some light on the regulation of these investment advisors so that an investor can rely on them for investment decisions? - Saurabh Kanjale
Editor Responds: It is essential to hire a registered investment advisor (RIA) – someone who is properly certified and registered to provide advice on investments and help people park their funds properly. The SEBI (Investment Advisers) Regulations, 2013 came into effect from April 21, 2013. The regulations specify conditions for registration, certification, capital adequacy, risk profiling and suitability, disclosures to be made, code of conduct, records to be maintained, manner of conducting inspection, etc. This kind of certification is an important basic requirement to look for when working with a financial planner. We hope we have been able to answer your query. Keep writing to us!