%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(41).png "SEBI tightens norms for Investment advisors")
- Qualification and Certification Changes:
- Reduced Qualifications: SEBI has lowered the minimum educational qualification for investment advisors to a graduate degree. This change aims to make it easier for individuals to enter the profession.
- Elimination of Experience Requirement: The requirement for prior work experience to register as an investment advisor has been removed, simplifying the registration process.
- Certification Requirements: While initial NISM (National Institute of Securities Markets) certifications are required to become an investment advisor, SEBI has removed the need for periodic re-examinations. This helps to reduce the compliance burden on advisors.
- AI Tool Disclosure:
- Investment advisors who utilize artificial intelligence (AI) tools in their advisory services must now disclose this usage to their clients. This measure ensures transparency and helps clients understand the technology behind the advice they receive.
- Data Privacy: Advisors are required to ensure that any AI tools they use comply with data privacy regulations, safeguarding client information.
- These tightened norms are intended to streamline the regulatory framework, promote greater professionalism in the investment advisory industry, and protect investors by ensuring that advisors meet a standard level of competency and transparency.
Question:
1 What is the revised minimum educational qualification required to register as an investment advisor under SEBI's new regulations?
- A) Postgraduate degree
- B) Graduate degree
- C) Diploma in Finance
- D) Doctorate in Economics
