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TMI BlogSecurities and Exchange Board of India (Investment Advisers) (Amendment) Regulations, 2020.X X X X Extracts X X X X X X X X Extracts X X X X ..... lause shall be inserted, namely, - "(aa) "assets under advice" shall mean the aggregate net asset value of securities and investment products for which the investment adviser has rendered investment advice irrespective of whether the implementation services are provided by investment adviser or concluded by the client directly or through other service providers;" ii. in clause (c), the words, symbols and numbers "under sub-section (7) of section 2 of the Companies Act, 1956 (1 of 1956)" shall be substituted with the words, symbols and numbers "under sub-section (11) of section 2 of the Companies Act, 2013 (18 of 2013);" iii. in clause (f), after the words, symbols and numbers "Companies Act, 1956", the words, symbols and numbers "or Companies Act, 2013" shall be inserted. iv. after clause (g) and before clause (h), the following clauses shall be inserted, namely, - "(ga) "CPE" means continuing professional education in terms of clause (f) of sub regulation (1) of regulation 2 of the SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007; (gb) "family of client" shall include individual client, dependent spouse, dependent children and depe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... these regulations, no person, while dealing in distribution of securities, shall use the nomenclature "Independent Financial Adviser or IFA or Wealth Adviser or any other similar name" unless registered with the Board as Investment Adviser." VI. in clause (j) of regulation 4, the word "representative," wherever it occurs, shall be substituted with the words and symbol "principal officer, persons associated with advice". VII. in regulation 6, - i. in clause (a), the words "a body corporate or a firm" shall be substituted with the words "a non-individual" ii. clause (b) shall be substituted with the following clause, namely, - "(b) in case the applicant is an individual, he and all persons associated with investment advice are appropriately qualified and certified as specified in regulation 7;" iii. clause (c) shall be substituted with the following clause, namely, - "(c) in case the applicant is a body corporate, the principal officer and all persons associated with investment advice of the applicant are appropriately qualified and certified as specified in regulation 7;" iv. clause (d) shall be substituted with the following clause, namely, - "(d) in case the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h such qualification and experience requirements within three years: Provided further that the requirements at clauses (a) and (b) shall not apply to such existing individual investment advisers as may be specified by the Board. (2) An individual investment adviser or principal officer of a non-individual investment adviser, registered under these regulations and persons associated with 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; or (b) from any other organization or institution including Financial Planning Standards Board of India or any recognized stock exchange in India provided such certification is accredited by NISM: Provided that fresh certification must be obtained before expiry of the validity of the existing certification to ensure continuity in compliance with certification requirements: Provided further that fresh certification before expiry of the validity of the existing certification shall not be obtained through a CPE program." IX. regulation 8 shall be substituted with the following, namely, - "Networth. 8(1) Investment adv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lient level segregation of advisory and distribution activities. 22 (1) An individual investment adviser shall not provide distribution services. (2) The family of an individual investment adviser shall not provide distribution services to the client advised by the individual investment adviser and no individual investment adviser shall provide advice to a client who is receiving distribution services from other family members. (3) A non-individual investment adviser shall have client level segregation at group level for investment advisory and distribution services. Explanation. - (i) The same client cannot be offered both advisory and distribution services within the group of the non-individual entity. (ii) A client can either be an advisory client where no distributor consideration is received at the group level or distribution services client where no advisory fee is collected from the client at the group level. (iii) 'Group' for this purpose shall mean an entity which is a holding, subsidiary, associate, subsidiary of a holding company to which it is also a subsidiary or an investing company or the venturer of the company as per the provisions of Companies Act, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtners, directors, principal officer and persons associated with investment advice" shall be inserted. XXI. in the First Schedule, in FORM A, - i. in item 1, a. in clause (c), after the word "persons(s)", the words "and principal officer" shall be inserted. b. in clause (d), the words and symbol ", body corporate (including company), partnership firm or limited liability partnership" shall be substituted with the words "or non-individual". c. In clause (i), the following words shall be omitted. "(For renewal application, provide details of existing investment advisory services including number and type of clients, assets under advice, revenue, profitability, products/ securities on which investment advice was provided, etc.)". ii. in item 2, a. clause 1 of sub-item (I), shall be substituted with the following, namely,- "(1) Whether the applicant and persons associated with investment advice comply with qualification and certification requirements under regulation 7 and applicant has submitted a declaration with respect to the same. (Provide self-certified copies of supporting documents)." b. in clause 2 of sub-item I, the following shall be omitted. "(If the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pal officer and persons associated with investment advice in accordance with regulation 7(2)." l. in clause 4 of sub-item III, the word "partners" shall be substituted with the words "principal officer and persons associated with investment advice". m. in clause 5of sub-item III, the word "net tangible assets" shall be substituted by "networth". n. in clause 1 of sub-item IV, after the word "directors", wherever it occurs, the words and symbol ", principal officer and persons associated with investment advice" shall be inserted. o. in clause 3 of sub-item IV, the words "employees and agents of the applicant (hereinafter referred to as 'representatives')" shall be substituted with the words "principal officer and persons associated with investment advice". p. in sub-item IV, clause 4 shall be substituted with the following clause, namely, - "4. Declaration by the applicant that its principal officer and persons associated with investment advice currently comply with the certification and qualification requirements under regulation 7." q. in clause 5 of sub-item IV, the word "representatives" shall be substituted with the words "principal officer and persons associated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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