Investment Adviser Audit

As per SEBI Latest Amendments, It Complulsary for Everyone to get an Investment adviser audit done Either registered as Individual or Non-Individual. Audit Should be Done within 6 months from the end of the Financial Year, Which means for Finacial Year 2020-21, your Audit should be completed up to 30 Sep 2021. Audit Report Should be signed by CS Or Chartered Accountant in Practice. 

We are a Chartered Accountant in Practice and we can provide a Compliance audit report for an Investment advisor that you can submit to SEBI.

SEBI Audit Documents Required Begins From Regulation 7

Professional Qualification, Post Graduate Degree Or Post Graduate Diploma + Nism Investment Adviser Level 1 And Nism Investment Level 2. If Your nism certificate is going to expire, Kindly take CPE Hours or Attend the exam 3 months before the expiry date. Check our page for the Investment adviser registration process from various locations.

Regulations 8

Net Worth Certified by CA Required 

• For Individual - Rs 5,00,000/-
• For Non Individual - Rs 50,00,000/-

General Responsibilities 

Its the Responsibility of every investment Adviser to keep

• KYC 
• Risk Profiling And Risk Assessment of the client
• Investment Advice Provided ( whether written or oral )
• Rational for arriving at the investment advice
• Investment Adviser Agreement.

All these documents should be kept for 5 Years.

Regulation 16 - Risk Profiling

There is one document named Risk Profiling required when you are going to register with SEBI as an Investment adviser. That is a complete questionnaire to understand the client's Risk ability. It's a Compulsory document to keep risk profiling and comments on clients' risk profiling.

Regulation 17- Suitability

The investment adviser shall ensure that,

(a)All  investments  on  which  investment  advice  is  provided  is  appropriate  to  the  risk profile of the client

(b)It has a  documented process for selecting investments based on the client’s investment objectives and financial situation;

Regulation 18: Disclosure to clients

•  An investment adviser shall disclose to a   prospective client,   all material information about itself including its business,  disciplinary history,  the terms and conditions on which it offers advisory services, affiliations with other intermediaries, and such other information as is necessary to take an informed decision on whether or not to avail its services.

• An investment adviser shall disclose to the client its holding or position, if any, in the financial productsor securities which are subject matter of advice. 

• An investment adviser shall disclose to the client any actual or potential conflicts of  interest  arising  from  any  connection  to  or  association  with  any issuer  of products/ securities,  including any  material information  or  facts  that might  compromise its objectivity or independence in the carrying on of investment advisory services.

• An investment  adviser  shall,  while  making  an  investment  advice,  make  adequate disclosure to the client of all material facts relating to the key features of the products or Securities, particularly, performance track record