Mutual Funds

CAMS launches eKYC using OTP based Aadhaar verification for MF investors

Computer Age Management Services (CAMS) has unveiled an e-KYC facility using an one time password based Aadhaar verification to serve the new mutual...

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Mutual Funds

Aditya Birla Sun Life Mutual Fund rolls over seven FMPs due to low-yield concerns

Aditya Birla Sun Life Mutual Fund has rolled over seven FMPs which were maturing in the month of April, 2021, writes The Economic Times.

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Tax

Income Tax department issues reassessment notices for time-barred FYs

Income tax department has started issuing notices of reassessment of tax liability for FYs 2013-14, 2014-15 and 2015-16, according to The Economic...

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Regulation

Driving license validity extended till 30 June

The Ministry of Road Transport and Highways (MoRTH) said it is extending the validity of fitness, permit,

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Tax

Post Office Schemes: Cash Withdrawals above Rs 20 lakh to attract 2%-5% TDS

The Department of Posts has issued new rules for deduction of TDS if the aggregate withdrawal from all post office schemes is more than Rs 20 lakh.

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Regulation

Deadline for linking Aadhaar PAN extended till June 30

The government has extended the time limit of linking Aadhaar number to PAN to June 30, 2021 while also extending time for equalisation levy...

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Mutual Funds

MF Investors Are Making Lesser Returns than their Schemes, finds Axis Mutual Fund

Mutual fund investors earn much lesser returns that the schemes they invest in, shows a recent research done by Axis Mutual Fund.

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Tax

CBDT issues ITR forms for Assessment Year 2021-22

The Central Board of Direct Taxes has notified income tax return forms for the assessment year 2021-22 with no significant changes, keeping in view...

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Tax

Govt hikes Provident Fund tax exemption limit to Rs 5 lakh under certain conditions

The government has raised the threshold limit of tax-exempt contributions to the Provident Fund (PF) to Rs 5 lakh (from Rs 2.5 lakh announced in...

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Mediclaim

Hospitalisation due to Covid Vaccine After-effects covered under Health Insurance Plans

The IRDAI has clarified that hospitalization due to any adverse reaction to Covid vaccination will be covered under your existing health insurance...

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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.
 
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Debashis Basu
Founder