How to become an Investment Adviser

Investment advisor and qualification

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Investment adviser means any person, who for consideration, is engaged in the business of providing investment advice to clients or other persons or group of persons.

By virtue of (INVESTMENT ADVISERS) REGULATIONS, 2013 SEBI has made registration compulsorily to act as investment advisor. It is a step towards Investor protection. It aims to prohibit unqualified and inexperienced persons/entities from providing investment advises , which results in loss to investors. Recently, SEBI has suspended several persons who have been acting as investment advisors without seeking registration under SEBI. By the newly implemented regulations SEBI, clarified qualifications required to get registered as investment advisors and exempted certain group of persons/entities from registration

Qualification requirements:

A) A professional qualification or post-graduate degree or post graduate diploma in finance, accountancy, business management, commerce, economics, capital market, banking, insurance or actuarial science from a university or an institution recognized by the central government or any state government or a recognized foreign university or institution or association; or

 

(B) A graduate in any discipline with an experience of at least five years in activities relating to advice in financial products or securities or fund or asset or portfolio management.

 

Further Individuals/partners registered under these regulations offering investment advice shall have, at all times, a certification on financial planning or fund or asset or portfolio management or investment advisory services:

(a) from NISM(National Institute of Securities Market); or

(b) from any other organization or institution including Financial Planning Standards Board India or any recognized stock exchange in India provided that such certification is accredited by NISM.

Existing investment advisors will have a period of two years to obtain such qualification.

 

Exempted persons from registration

  • Insurance adviser registered with –IRDA
  • Pension adviser registered with-PFRDA
  • Any advocate, solicitor or law firm, who provides investment advice to their clients, incidental to their legal practice
  • Any member of Institute of Chartered Accountants of India, Institute of Company Secretaries of India, Institute of Cost and Works Accountants of India, Actuarial Society of India or any other professional body as may be specified by the Board, who provides investment advice to their clients, incidental to his professional service
  • Etc…

 

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