Who is a SEBI Registered Investment Advisor (RIA)?

A SEBI Registered Investment Advisor (SEBI RIA) is a professional or a firm registered with SEBI under the Investment Advisers Regulations, 2013. These advisors are authorised to provide investment advice and financial planning services to clients. The registration ensures that the advisor adheres to the stringent guidelines and maintains high standards of conduct and professionalism.

Qualifications and Registration Process

To become a SEBI Registered Investment Advisor (SEBI RIA), one must meet specific educational and experience criteria. The requirements include:

• Educational Qualifications: A postgraduate degree or a professional qualification such as CFA, CA, CS, ICWA, or an equivalent.
• Experience: At least five years of experience in  activities related to advice in financial products or securities or fund or asset or portfolio management.
• Certification: Certification from the National Institute of Securities Markets (NISM) or any other certification recognized by SEBI.

Once these criteria are met, the individual or firm can apply for  registration with SEBI to become a SEBI Registered Investment Advisor  (SEBI RIA). The application process involves submitting various  documents and details, including a detailed business plan, compliance  policies, and the code of conduct.

Duties and Responsibilities

A SEBI Registered Investment Advisor (SEBI RIA) has several duties and responsibilities, ensuring that the client’s interests are paramount. These include:

• Fiduciary Duty: SEBI RIAs have a fiduciary duty to  act in the best interest of their clients, putting their clients’  interests ahead of their own.
• Transparency: They must maintain transparency in their dealings, clearly disclosing any potential conflicts of interest.

Who Can Become a SEBI Registered Investment Advisor (RIA)?

Anyone engaged in or planning to engage in the business of providing investment advice to clients , whether individuals (financial advisors) or groups, must apply for registration under SEBI’s Investment Adviser (IA) regulations.

“Unlike brokers or agents, SEBI RIAs do not earn commissions from selling financial products, reducing the potential for conflicts of interest.”

Grant of Certificate of Registration

SEBI will consider all specified requirements and, upon satisfaction, approve the application. The applicant will be informed and, upon payment of the registration fees, a certificate of registration will be granted under specified terms and conditions.