Financial assets can be viewed in a single online window

Customers will soon be able to view all their financial holdings in a single online window. The RBI (Reserve Bank of India) published draft guidelines for companies that will provide such aggregator services to individuals. RBI said, "At present, persons holding financial assets, such as savings bank deposits, fixed deposits, mutual funds and insurance policies, do not get a consolidated view of their financial asset holdings, especially when the entities fall under the purview of different financial sector regulators. Account aggregators would fill this gap by collecting and providing the information of customers' financial assets in a consolidated, organized and retrievable manner to the customer or any other person as per the instructions of the customer."

Under the draft guidelines issued, the aggregator companies will be a new category of non-banking finance companies. To be eligible to obtain a licence as such an NBFC, the company will need to fulfil the eligibility criteria which include having a minimum net worth of Rs 2 crore. Promoters will have to incorporate a separate company as the entity will not be allowed to engage in any other business other than aggregator services.

The aggregator will display details of all financial assets held by an individual. These include all bank deposits, deposits with NBFCs, structured investment products (SIPs), commercial paper (CP), certificate of deposit (CD), government securities (tradable), equity shares, bonds, debentures, mutual fund units, ETFs, Indian depository receipts, CIS (collective investment scheme) units, alternate investment fund (AIF) units, insurance policies, balances under the National Pension System (NPS),  units of infrastructure investment trusts, and units of real estate investment trusts.



To continue

Sign Up or Sign In


We are listening!

Solve the equation and enter in the Captcha field.

Changes in Our Business Model
25th Sept 2020
Greetings from Moneylife Advisory Services
Between financial years 2019-21, SEBI has come up with extensive changes to investor advisor regulations. On Sep 23, 2020, SEBI had issued new additional guidelines. This comes just two months after extensive changes announced in July 2020. Earlier, in December 2019 there was an ad hoc circular
As a result of these changes, IAs, cannot accept fees through credit cards, will have to sign a 26-clause investor agreement, have to maintain physical record written & signed by client, telephone recording, emails, SMS messages and any other legally verifiable record for five years. IAs were already asked to record the suitability and rationale for every piece of advice given, sign them and store them for five years.
While these extensive and frequent changes, designed to strengthen the conduct of IAs are well-meaning, these have sharply increased compliance efforts and cost. We, being online advisors, find many of changes harder to implement, compared to advisors working in the physical space. We will have to have an army of advisors, administrative and tech staff to be compliant. If we do this, we will have to divert money to these areas and the cost of our service will double. We want to remain the least-cost service in the market to benefit more and more people. In the circumstances, we are forced to change our business model from “advisory” to “research”. This will mean the following:
What remains the same:
  • Recommendations on insurance, investment and Lion stocks, will continue as a part of the MAS premium subscription. Our strength has always been research and this will remain available to you through our recommendations.
  • The magazine and all textual content will remain as part of the service
  • We will have to suspend the restructuring tool.
What changes:
  • The interactions in Ask / Handholding will offer investment advice but not specific to your situation. It will offer information on investment products and also clarify your doubts about various financial products. It will be a forum for information, not for advice. This will be implemented with immediate effect and our guidelines in Ask, reflect this now.
Over the next few weeks our site and our communication to you will reflect these and other additional changes.
We feel this will not affect you much in terms of what really matters in investing: knowing what to buy and when to buy. This is our edge and it will still be available to you.
Debashis Basu