Govt prepares draft bill for defining cryptocurrency assets and their taxation

The government is drafting a new bill to define cryptocurrency and proposes to compartmentalise virtual currencies on the basis of their use cases,...

more

SEBI Plans to Set Up Backstop Facility for Corporate Debt Market to Enhance Liquidity

Capital markets regulator SEBI is planning to set up a

more

RBI Bans DHFL from Taking Deposits Post-takeover by Piramal Group

The Reserve Bank of India (RBI) has revoked the deposit-taking status of Dewan Housing Finance Ltd (DHFL).

more

Central government may soon notify new labour codes

The four labour codes are likely to see the light of day in a couple of months as the Centre is now keen to go ahead with the implementation of these...

more

Casual, contractual employees of municipal bodies to enjoy ESIC cover

The Ministry of Labour and Employment announced that the Employees State Insurance Corporation (ESIC) would extend benefits of its health insurance...

more

SEBI’s RIA rules are limiting the growth of low-cost Online Investment Advisory

Providing low-cost investment advice through automated platforms to small-ticket retail investors is becoming unfeasible for fintech firms, prompting...

more

CBDT relaxes restrictions on cash payment over Rs 2 lakh for Covid-19 treatment

The government has allowed hospitals, dispensaries and COVID-19 care centres to accept cash payments in excess of Rs 2 lakh from patients or their...

more

Changes in motor vehicles rules will now ease transfer of ownership of vehicle after death of owner

The Ministry of Road Transport and Highways has notified certain changes in the Central Motor Vehicles Rules, 1989 to facilitate the owner of a...

more

Centre plans to launch digital delivery of healthcare services

The Centre is likely to launch the digital delivery of healthcare services together with private sector stakeholders within the next 1 to 2 years...

more

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
  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