The year 2021 has started with good news for Investment advisers. The news is beneficial especially for those who are planning to apply to SEBI and for those advisers for whom the renewal of registration is due.
As per the latest amendment to the Investment Advisers Regulations, published on January 13, 2021, SEBI has slashed the registration and renewal fees for individuals, firms and corporates.
The new fee structure is effective from April 1, 2021.
Here is a quick comparison of old and new registration fees:
The renewal fee has also seen a significant cut of more than 90% for companies and LLPs.
Here is a quick comparison of renewal fees:
To keep the registration in force, the renewal fee has to be paid every 5 years. The fee should be paid within 3 months of the date of the expiry of 5 years’ time period.
Click here to know how to renew the IA registration.
In July 2020, SEBI categorized the applicants as Individuals and Non-Individuals, where partnership firms were also considered as non-individuals.
However, SEBI has treated individuals and partnership firms at par with respect to the fee structure.
The enhanced the net-worth requirements has forced many of the existing non-individual RIAs (especially the partnership firms) as well as those who are planning to apply, to think about the way forward.
It is important to note that only the registration and renewal fees has been cut. The net worth requirements remain the same as before.
Will just the reduction in fee encourage more entities to take up RIA?
That seems to be the objective for SEBI. We have to wait and watch.
Update: The SRO for RIAs has been set up. All existing RIAs as well as new applicants have become members of the SRO. They have to pay registration fee to SEBI as well as pay membership fee to BASL. In short, the reduced fee is shifted to BASL membership fee. Click here for more details.
Has the fee been reduced for RA as well. If no, is it expected because there is a big difference between RA and IA pricing. Pls advise.
Regards
Shah
No news yet of RA fees being reduced.
Hi Kruti,
i want to know about recent Any SEBI amendment about Qualification
can you please explain that what they told, need professional qualification compulsory or what
as i am BCOM graduate and working since last 5 years as sub broker. also completed both NISM investment advisor Level 1 & 2 Exam
and i want to apply for Investment Advisor
so asking..want you guidance and professional help for further.
Hi Sudhir, you will need post graduation before you make an application to SEBI for IA registration. Here is the explanation for the recent change in qualification – https://cskruti.com/amendment-in-qualification-requirements-by-sebi/
Hope this helps.
I am a MFD i want to start as a research analyst
I need Your help regarding the criteria
I am a MBA in Finance
I have experience in markets of more than 7 years with a subbroker
networth is 25 lakhs
Can i apply for research analyst
Yes, you can apply. Hope the MBA is finance is from university / institute recogised by the Central or State Govt. or accredited by AICTE / NAAC. If you are looking for professional help in making an application to SEBI, pls share the details on kruti@cskruti.com
Hi shruti
Just one question, can i open my advisory company and give advise about stock market without having sebi registration. I have mba degree in finance and nism research analyst certification.
I would not recommend you to do that.
Hi
I am an engineering graduate (BTech.) with 6 years of work experience working as a research analyst / associate in a small KPO / investment banking research services company
I have 2 queries –
Will my work experience qualify for in order to apply as an individual RIA?
Will qualifications like CWM (Chartered Wealth Manager) + NISM 2 exams for RIA qualify in place of a post graduate qualification or is it mandatory to have a post graduate qualification (also, will distance education PGDM degree work ?) ?
Thanks in advance
Hi Anmol,
1. Does your experience certificate say that you worked as research analyst? If yes, then you fulfill the criteria for RA.
2. You will need post graduation to apply for RIA. Distance learning course should worked provided it is from university or institute recognised by the central or the state govt.
Hi Kruti
The networth requirement for Partnership Firms is Rs. 50 Lakhs. Can the individual partners put up their personal networth statement or should capital to the tune of Rs. 50 Lacs be necessarily induced into the partnership ?
The partnership entity in which we plan to have the RIA is a new entity and as such does not have any assets / networth.
Hi Arun, it has to be the capital contribution of the partners to the firm.
Hi Kruti,
Just one question, I note that the old registration fees for individuals is mentioned as Rs 10,000. Was it not Rs 1,00,000? Will I be required to pay as per the old rate or the new rate in case I make an application in the month of March 2021?
Hi Krishna, if you make an application before March 31, 2021, you have to pay the application fee as old rate. The registration fee is required to be paid after SEBI approves the application. So, registration fee might be as per the new rate.
Hi
Old registration (changed in July 2020) fees for Individual RIA was 1 Lac but you have mentioned 10000. why?
Hi. Firstly the registration fees was never 1 lac for individuals. Secondly SEBI did not change the registration fee structure for RIAs in July 2020. SEBI recently reduced the fees for RIAs. However it is applicable from April 1, 2021.
So it seems that a partnership firm will need a Net worth of 50Lakhs to meet such requirements? This will have to be in form of paid up capital. Isn’t it?
Net worth for partnership firms will be in the form of partners’ capital contribution to the firm.
Hi Kruti, I hold MBA finance and has 10 years experience in KPOs in India as financial data research analyst/market research analyst. I just passed NISM Research Analyst but currently employed by one of KPO. Can I apply for SEBI research analyst while working. I do not want to leave job. If not Can I alternatively apply for SEBI Investment Advisor without leaving current job.
Hi Ramesh, SEBI might ask you to leave you job, whether you apply as an Investment Adviser or Research Analyst, if your job is related to stock / securities market.
Can a Mutual Fund distributor apply for Research Analyst registration? Has the application and registration fee for Research Analyst also been reduced?
Yes, can apply. But SEBI may ask to surrender the MFD license. There is no change in the fee structure for RA.
In my view that may just attract few more people to become RIA
the networth norms
And the lack of process where more customers will actually pay fees to RIA are important one as in our country most people hesitate to pay fees and want free advice although they readily give to other people’s like Doctor , Cas and even plumbers
The issue which people like us are facing is reducing commission And looking for more income sources .
Let me know whether we can charge fees for —
Teaching client about selecting right investment or insurance
I understand your concerns. Yes, you can charge fee for teaching / a course on how to select right investment / insurance.