I have tried to draw a small business plan for all those who are thinking to be RIA .Hope this will be helpful http://www.caclubindia.com/articles/business-plan-for-a-budding-investment-advisor-shri-boodhimaan-27283.asp

Thanks for the heads up. As long as the regulator will not poke his nose on what can be RIA fees( in a pure play advisory model) it is welcome and we have to face the challenge one day or the other. If they come up with a socialist bent of mind and start dictating terms on what should be the fees charged for advisory( applying caps), then MF industry will perish. ET report says retail participation in equity markets have lowered over the decades where brokerages charged by equity brokers have been declining. So whether cost of intermediaries( distributors/brokers/advisors) going down is going to help the industry grow on volumes is an assumption risky to make. My opinion is Intermediary remuneration and volume growth are directly proportional to each other and not inversely proportional as how SEBI thinks.

SEBI has taken the step with considered 20% of Indian population who know about investment as specially mutual fund. We have been working as Mutual fund advisor on that area where many people opened the bank account after launched PRADHAN MANTRY JAN DHAN YOJNA. It is very tough to give advise and collect fees from the small investor. Why sebi is not thinking about 80% indian population who do not know about investment planing ???? Sebi and Government have to think about it.

3 years, 3 years, 3 years. It is not only about the distributors, I think the SEBI wants to have time to think. Let the SEBI know that we mean business, if it does not make sense to do business there are choices.

Oh Yeah! I am so excited now! The distribution concept would be out & All Intelligent Advisors who pay heavy fee & Fine to SEBI from time to time would have a great opportunity to MILK THE INVESTOR IN THE FORM OF FEE & even make more Money!!! Voila...Distributors are Dead men walking. In the meanwhile... the large Fund houses will take control of the Mutual Fund Industry & do MF Mafia Business.... Yew... I am so Excited to See Mafia in MF Business.... Now, who will question the Life Insurance Industry which is increasing the commission to 40-50%???? All these gullible distributors would be forced to sell life insurance because Commission is very Lucrative???? And you know who is going to pay for all these misdeeds of SEBI, LIFE INSURANCE COMPANIES, BANKS, NDs, & UNSCRUPULOUS AGENTS? Ofcourse, the Investor??? Who else??? Any way who cares, i will find something else to do...

Blind leading the blind in newer areas. & with constant encouragement from those whose lives do not depend on MF commission /Trail for survival. Nice.

sebi first should be analysis india v/s rest developed nation like uk and austrialia and education level and under statanding about finanacial pertration in india vs rest developed nation, than try to impletation and try to introduce new rule for distribution system, also should be analsis how indian mutual fund industry grow and how distributor can help next 10 to 20 year till we reached peer level of rest developed nation than we can think and implecation rule for india , that time will be good but at present sebi try to put hard rule just for rule not we can see benfit which sebi want to reflect in indian land , so we can urge sebi given at least time till mutual funds investment peration in retail investment population reach equal developed nation than sebi can introduce that kind of rule and macro and micro level result should also be analysis before put on table peer rule of developed nation, this is our single request to sebi,

Its a clear cut indication in advance to the IFAs that the current business model of distribution will longer in place going forward. its very much clear that we can not argue with Regulator, they will do what they want. Its up to us how we can cope with the developments, Start with quality advice to the client and charge for the same i.e associate with online platform and charge client to evey single SIP transaction around Rs. 20, if client has 4 transaction in a month including any change of detail etc one can accumilate Rs. 100 revenue from a client in a month which convert to 1200 in a year and think if you have a client base of 2000 the yearly revenue will be around Rs. 24 Lac and monthly of 2 Lac, apart from this we will have commision in place from AMCs till SEBI completely bar it.. We need to think on these practices very seriously if we want to be in the game.

What I can forsee if some of the ifa friends still thinks its okay to be pure distributor, in that case the payout will not be trail but would be transaction fees of Rs.100 or so...which is optional right now... Its time to unite and try to submit constructive inputs to convince the regulator it will be more damaging instead of helping the investor.

Good. Gradually small investors will be out of the field.

*Now, what shall we do & how shall we?* A) To consider our own action plan & strategy. B) To see our business model & make it viable. C) To accept & deal with the challenge in an amicable manner. D) To join hands on PAN India basis with an association like FIFA & have a perfect platform. *Finally, call is yours not of others. We hope it gives you a clear idea. Lets deal this situation together with open minded approach, as united we stand & divided we fall. This divide amongst IFAs is actually drowning us. Now, let us swim together or we all will drown. This divide is already drowning us since long.* *Warm Regards,* *Varun Vaid*

You have given very clear road map to individual IFAs as the inevitable thing will come into effect after 3 Yrs. Read my write-up which is somehow appropriate to the said issue. Who should be your Advisor IFA or IIFA? https://salimmomin.wordpress.com/who-should-be-your-advisor-ifa-or-iifa/ Thanking You! Salim Momin, CFP.