India Post Payments Bank to Charge Annual Maintenance and Re-issuance Fees for Virtual Debit Cards

India Post Payments Bank (IPPB) has announced that it introduced annual maintenance and re-issuance charges for its virtual debit cards effective...

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RBI’s Nod For Financing To Help Bolster Self-Redevelopment Projects In Mumbai

The Reserve Bank of India (RBI)’s decision to allow co-operative banks to grant finance to commercial real estate –residential housing...

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RBI Hikes Limit On Auto-Debits From Debit, Credit Cards Sans OTP to Rs 15,000

The Reserve Bank of India (RBI) has raised the limit for recurring transactions which can be conducted without an additional factor of authentication...

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India Post Payments Bank Reduces Savings Account Interest Rates by 25 bps from 1st June

India Post Payments Bank (IPPB) has decreased interest rates on savings accounts by 25 basis points. The lower interest rates are applicable from 1...

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Government Warns SBI Customers Not to Reply to This Fake Message

The Press Information Bureau (PIB) has alerted State Bank of India (SBI) customers about a new SMS fraud. According to the PIB Fact check tweet ,

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Axis Bank Hikes Charges for Auto Debit Failure, Additional Cheque Book, Non-maintenance of Bank Balance

Private sector lender Axis bank has revised several service charges for its savings bank account holders.

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RBI Directs Banks To Offer Cardless Cash Withdrawal Facility Across All ATMs

The Reserve Bank of India (RBI) has asked all banks to provide customers with the option of Interoperable Cardless Cash Withdrawal (ICCW) at their...

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NEFT, RTGS Facility For Post Office Savings Account Holders Finally Operational

Post office savings account holders can start transferring money electronically now. According to a Department of Post circular issued on May 17,...

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Yes Bank Hikes FD Premature Withdrawal Penalty

Yes Bank has stated on its website that it will impose a penalty charge for premature withdrawals for fixed deposits under 181 days.

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India Post Warns Customers Of Fraud Websites Claiming To Offer Subsidies

The Department of Post (DoP) has warned its customers by sending SMSs asking them not to fall prey for fraudulent claims offering government...

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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
  • 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