Driving license validity extended till 30 June

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

more

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...

more

Gadkari unveils vehicle scrapping policy to replace old vehicles by giving strong incentives

Vehicle owners scrapping their old vehicles, could get “strong incentives” including a 25% rebate on road-tax for personal vehicles, and...

more

Government amends Insurance Ombudsman rules; now track complaints online

Insurance policy holders will now be able to make complaints electronically and track its status online, as the government has amended the Insurance...

more

New job code will allow 4-day work week, ESIC facilities in final rules

The labour ministry will give flexibility to employers to enable four-days a week of work with a ceiling of 48 hours in a week in the final rules...

more

RBI forms working group to regulate digital lending apps, curb unethical practices

The Reserve Bank of India has set up a working group to regulate digital lending through mobile applications amid growing concerns surrounding the...

more

IRDAI sets up expert committee to advice on improving health insurance in India

India’s insurance regulator IRDAI has set up an advisory committee composing some of the country's foremost medical practitioners and...

more

Revenue department clarifies KYC requirements for gold, silver purchases above Rs 2 lakh

No new KYC disclosures have been mandated for cash purchase of gold, silver or precious gems and stones and only high-value cash transactions...

more

New Labour Codes could widen overtime pay to white-collar, managerial employees

Professionals working extra hours may have something to cheer for in the new labour codes as the new law, if implemented in its entirety, would widen...

more

SEBI issues guidelines for transfer, dematerialisation of re-lodged physical shares

Securities and Exchange Board of India has shared operational guidelines to credit physical shares in demat account of investors following re-lodged...

more
  Loading...
  Loading...

To continue


Please
Sign Up or Sign In
with

Email

We are listening!

Solve the equation and enter in the Captcha field.

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.
 
img
Debashis Basu
Founder