RIA is the new age advisory model and several advisory firms and individuals are whole heartedly moving in this direction.
However, RIA is not just a tag, or just a license to go out and get business. This is how I see the current perception.
As soon as you become an RIA, there are duties, responsibilities and compliance related to the regulation that you need to take care of.
There is a whole list of things that SEBI expects you to adhere to and comply with. Advisers are missing out on doing basic risk profiling or even KYC of their clients.
In the short term, that seems like an easy way out, but over the long term, these lapses may come to haunt you back.
It is important that you start paying attention to compliance from now itself.
A foundation of compliance laid today will serve you well when you scale up. The processes that you set today will become talking points to your clients and help you grow your business.
And of course, you will be saved from SEBI’s wrath.
You know that the Finance Bill 2018 has given more powers to SEBI to levy penalty for non-compliance. The penalty on Investment Advisers for non-compliance of the regulations can go upto Rs. 1 crore.
Are you sure you are compliant with the regulations?
If not, here is an opportunity to know more about compliance of SEBI (Investment Advisers) Regulations, 2013.
As a reminder, I am conducting a workshop at Mumbai for Investment Advisers on how to take care of this important part of your business.
Click here to know more about this workshop and the registration details.
If you have queries, you can get in touch with me at kruti@cskruti.com