Structured Biiz

INVESTMENT ADVISERS

Registered Investment Advisor (RIA) gives investment advice to individuals. RIAs have a fiduciary duty towards their clients to give them financial advice in the best interest of their clients. RIAs have to get themselves registered with the Securities and Exchange Board of India (SEBI).

Securities and Exchange Board of India (SEBI) is a Financial Services Regulator and Market Regulator in India. So, investment advisers who are registered with SEBI can only provide financial advice to investors and clients with respect to various financial products. The advisers have to follow regulations of the Registered Investment Advisor (RIA).

Registered Investment Advisers RIAs should behave ethically in all the business dealings of the clients. Some RIAs charge their clients some percentage of their assets under management as a fee or others charge a flat fee or hourly fee for advice. RIAs could act as Financial Planner, Portfolio Manager, and also as Tax Savings Advisers.

Who is required to register as an Investment Adviser?

Exemption from registration as an Investment Adviser

Eligibility criteria for a registered Investment Adviser

For individual RIAs, partnership firms, companies and LLPs to be eligible to be an investment advisor, they need to meet the net worth requirements. The net worth requirements have been recently amended by SEBI in July 2020 and are effective from October 1st, 2020. All the investment advisers are required to comply with the criteria within 3 (Three) years.

Net Worth Requirements: 

Qualification & Certification Requirement

Client level segregation of advisory and distribution activities

What are the documents required for registration?

Registration & Renewal Fee

With the recent amendments, SEBI have reduced the fees for registration and renewal under notification issued by SEBI Investment Advisor Regulations, 2021 dated 13th January, 2021.

Reduction in Application Fees

Reduction in Registration Fees

Reduction in Renewal Fees