The new SEBI directive is putting all IFAs at great risk and a suitable way to protect them has to be found.In case of Insurance selling it is In Good faith and in all other sales it is Buyer Beware. In case of IFAs selling MF schemes the onus is on IFA with no protection to IFA.
I suggest all AMCs redesign all their application forms with a clear caveat boldly printed somewhere in the beginning part as under.
"I confirm that the advisor who recommended this investment has explained fully the risks associated with this and I have understood the same and am investing."
Signed Investor
With financial literacy among investors being low ignorance of the investor can put advisor into great trouble and such a protection i think is important.
Will AMCs oblige ?