Moneylife Foundation Impact: RBI disallows freezing of bank accounts needing KYC update

The Reserve Bank of India (RBI) governor Shaktikanta Das has directed banks and other regulated financial entities not to impose any punitive...


SBI tells branches not to freeze accounts if KYC is not updated

SBI has written to all it branches asking them to not summon their customers for updating KYC (know-your customer) details, writes The Economic Times.


Reserve Bank will survey customers of banks that have undergone merger

The RBI has decided to conduct a customer satisfaction survey to find out the impact of the recent mergers of state-owned banks on banking services...


BOB Financial, Mastercard launch QR on card solution for accepting payments

Mastercard and BOB Financial Solutions ltd have launched ConQR - a Mastercard QR on Card solution.


Reserve Bank of India imposed a penalty of Rs 2 crore on State Bank of India

The RBI imposed a penalty of Rs 2 crore on State Bank of India (SBI) for contravention of norms, including specific directions to the lender on...


RBI is looking at ways to regulate online loan apps

The Reserve Bank of India (RBI) has reached out to Google, the Digital Lenders Association (DLAI), fintech association FACE and several non-bank...


Banks cannot break open lockers without notice to locker holder, says SC

The Supreme Court ruled that banks cannot break open lockers without written notice to locker holders or deny any liability for the loss of contents...


Bank complaints rise 57% in a year, NBFC complaints rise 386%

Consumer complaints about banking services jumped 57% to 3.08 lakh for the year to June 30, 2020, the Reserve Bank said.


Competition Commission dismisses complaint against ICICI Bank

The Competition Commission of India (CCI) has dismissed a complaint of abuse of dominant position made against ICICI Bank with respect to the home...


Indians saved additional $200 billion during Covid pandemic and lockdowns

Indians ended up saving additional $ 200 billion during the Covid pandemic and the lockdowns, as reported by The Economic Times from a recent UBS...


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Changes in Our Business Model
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
  • The investools will have to be reworked and will offer model portfolios. 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