investment advisors

SEBI has brought in a concept of an Investment Advisor Administration and Supervisory Body which will regulate the registered investment advisors in the country under the SEBI (Investment Advisors) Regulations. For that purpose they have granted recognition to BSE Administration & Supervision Limited as an Investment Advisor Supervisory Body. This body i.e. BASL, shall have the following responsibilities, viz.

i. Supervision of IAs including both on-site and offsite
ii. Grievance redressal of clients and IAs
iii. Administrative action including issuing warning and referring to SEBI for enforcement action
iv. Monitoring activities of IAs by obtaining periodical reports
v. Submission of periodical reports to SEBI
vi. Maintenance of database of IAs

SEBI shall also concurrently administer and supervise the RIAs (registered investment advisors) and shall be subject to periodic inspection by SEBI. So there will be a dual supervisor body for RIAs going forward.

Pursuant to this grant of recognition to BASL, all RIAs are required to ensure compliance with the following:
i. Membership of IAASB – they have to take membership of BASL within 3 months of the recognition of BASL, which has been recognized from 1st June, 2021. So all RIAs have to perforce take membership of BASL by end August, 2021
ii. Payment of fees: All RIAs have to pay the membership fees to BASL. The fee structure is given below:

SEBI has also modified its fee structure w.e.f. 1st April, 2021 vide its amendment notification dated 11th January, 2021. It appears that fees to SEBI has been discontinued, instead the fees have to be paid to BASL.

Detailed SOPs and FAQs have been issued by BASL with respect to the membership of BASL and other incidental matters. That can be found here.

https://www.sebi.gov.in/media/press-releases/jun-2021/bse-administration-and-supervision-limited-granted-recognition-for-administration-and-supervision-of-investment-advisers_50540.html

Get ready for increased supervision and more compliances – RIAs


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