Franklin Templeton MF: Sebi issues show-cause notices for lapses in risk-management process

Securities market regulator Sebi has issued show-cause notices to Franklin Templeton Asset Management Company (AMC), trustees and key managerial...


NPCI glitch cost mutual fund investors the bull rally in equities

Hundreds of thousands of mutual fund investors may have missed out on the stock market rally in the past 10 days,


Franklin Templeton MF: Supreme Court will hear matter on debt funds on 1 February

The top court was last week told by the counsel for Franklin Templeton that an order be passed for allowing distribution of money to the...


Sebi-appointed Observer in Franklin Templeton MF’s voting process alleges deviation from rules

In a big revelation, TS Krishnamurthy, the SEBI-appointed observer to monitor the e-voting conducted by Franklin Templeton Mutual Fund (FTMF) has...


ICICI Prudential Mutual Fund launches Business Cycle Fund

ICICI Prudential Mutual Fund has launched the ICICI Prudential Business Cycle Fund, an open-ended equity scheme.


IRDAI approves facility for customer’s electronic consent for policies to all products

Regulator IRDAI has extended the facility for life insurers to obtain the consent of prospective policy holders electronically by three months till...


Sebi increases overseas investment limit of mutual funds

The Securities and Exchange Board of India (Sebi) has enhanced the overseas investment limits per fund house to $600 million from the existing $300...


Mirae Asset MF caps new SIPs in its Emerging Bluechip fund to Rs 2,500 per month

Mirae Asset Mutual Fund has reduced the investment limit for fresh inflows through systematic investment plans (SIPs) in its flagship Mirae Asset...


AMFI asks mutual fund distributors to remove ‘Advisor’, ‘Wealth Manager’ label from their name

Association of Mutual Funds in India (Amfi) has asked mutual fund distributors to not identify themselves as advisors, writes The Economic Times.


Multi cap schemes witness huge outflows in September; other equity schemes affected

The association of mutual funds in India (AMFI) released the monthly data for September about inflows in mutual fund schemes.


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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