Securities and Exchange Board of India Registered Investment Advisers now have a common platform to share their voice. A group of SEBI RIAs have come together and formed an association called Association of Registered Investment Advisers (ARIA), which has been registered as a Section 8, not-for-profit entity. Morningstar had reported about this earlier.
Currently, 82 RIAs have joined ARIA. Individuals and corporates that hold RIA licenses can be a part of this association.
The aim of this association is to create and promote ethical standards, corporate governance and professional practices standards. Also, ARIA will work towards growing the RIA community by mentoring new aspirants and transitioning mutual fund distributors.
SEBI Investment Adviser (IA) Regulations 2013 created a class of advisers who are held to a higher standard in terms of education, experience, certification as also adhere to better processes & compliance, in the interest of the investors.
Additionally, they are held to fiduciary standard, where they need to put their client’s interest ahead of everything else, including their own. RIAs typically charge fee from clients and their distribution arm is segregated & held at arm’s length distance. As the feeds of direct plans have become accessible, RIAs are actively moving their client assets from regular to direct plans.
While RIA regulations came into effect from 2013, not many distributors have registered as RIAs as the concept of fee-only advisory is still evolving in India. Currently, around 1,246 RIAs are registered with SEBI. Experts say that only about one third of them are practicing independent financial advisers. Many robo advisers selling direct plans operate as RIAs.
RIAs can join ARIA here. You can write to Committee @ directors@aria.org.in. if you have any queries.
