The Securities and Exchange Board of India (SEBI) on August 25, 2023, issued a Consultation Paper on Mechanism for Fee Collection by SEBI Registered Investment Advisers and Research Analysts
This consultation paper seeks comments from the public on a proposal to create a closed ecosystem for fee collection by SEBI registered Investment Advisers (‘IAs’) and Research Analysts (‘RAs’) from their clients. This ecosystem will help investors ensure that their payments are reaching only registered IAs and RAs. As a corollary, this would also help investors identify, isolate and avoid unregistered entities, who would be unable to access this closed ecosystem.
The proposed mechanism for fee collection is based on the recommendations of a working group comprising representatives from BSE, BSE Administration & Supervision Limited (BASL) and ARIA (Association of Registered Investment Advisers). In the proposed mechanism, fees shall be paid by clients on designated platform/s to be specified/ administered by a SEBI-recognised supervisory body. IAs/ RAs shall provide the details of the designated bank account/s in which fees shall be received through the proposed mechanism. These designated bank account/s shall be used solely for the collection of fees from investment advisory/research activity.
Comments may be forwarded in an Excel file by email by September 15, 2023.
