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Clarification requested on ‘Clause 15’ of IA Regulations-FAQ? No. of comments:4 Srikanth V Kulkarni, BANGALORE, 33153 On 29-Apr-2015

Clause 15 of FAQ on IA regulation: Whether a person acting in multiple capacities such as insurance agent, pension advisor, mutual fund distributor, etc. is exempted from obtaining registration under IA Regulations? A person acting in multiple capacities such as insurance agent, pension advisor, mutual fund distributor, etc. and expand his scope of activities to include investment advice on other financial products or engaged in the financial planning of the clients, then he may be registered and regulated under IA Regulations for advising on such other financial products or financial planning of the clients. Questions.1.Can existing Insurance agents with mutual fund distribution, continue doing the business without need of registering under IA regulations? 2. Is registration under IA is needed only if he expands his scope of activities to include investment advice on other financial products and Financial planning? 3.Can the meaning of word ‘and’ here be interpreted as if he continues as insurance agent and MF distributor, then not necessary to register under IA? Request Wealth Forum to get these clarifications so that it helps majority of the IFA’s to take their business models forward, without ambiguity, please.

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Comments Posted

Sam Koshy ARN NO :5727 KOLLAM, 02 Jun 2015

The clause clearly states that if you are an insurance agent you cannot give advise on any other investment products. If you want to give advise on multiple products you must register as an RIA.

Ramakrishna k ARN NO :33313 Bangalore, 06 May 2015

Definitely, there is an ambiguity in the words and language of the clause, comments posted by various IFA''s are still not clear. Wish Wealth forum experts, AMFI authorities, other IFA communities go through the same and throw more / clear light on the issue and clarify.

e m sivasankaran ARN NO :56234 manjeri, 01 May 2015

the question is whether AN Lic agent who is also an IFA CAN CONTINUE AS SUCH UNDER THE REGULATION DISTRBUTING MUTAL FUND AND SOLICITING INSURANCE PRODUCTS.WHETHETR AN IFA IS RESTRAINED FROM SELLING OTHER PRODUCTS?

Sanjeev Kumar.G ARN NO :68425 kochi, 29 Apr 2015

Sir it is option for IFAs weather they cn continue as Insurance Agent & IFA or they can register as RIA.So an insurance agent who is working as an IFA can work as an IFA or he can register as an RIA. It is not mandatory/compulsory to register as RIA.If you got registered as RIA you are not eligible for upfront/trail commission from any AMC.But you are eligible for charging from your client directly in the form of fee.So better to stay as an IFA & Insurance agent so that you can work as per your convenient & will get all the benefits from AMCs & LIC for the work whatever you have done.