Investment Advisor Registration License
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Investment 
Advisor 
Registration 
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ABOUT 
 A registered investment advisor (RIA), or 
adviser, is a person or firm that provides 
advice on buying or selling securities. If 
it's a company, an RIA is typically 
a limited liability company, limited 
partnership, or other business entity that 
has registered with the Securities and 
Exchange Commission—if it has $25 
million or more of assets under 
management or provides advice to 
investment company clients—or with the 
state it's located in.
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Types of Investment Advisors 
Certified 
Financial 
Planners
Registered 
Stock Investment 
Brokers: Advisers 
(RIAs)
Insurance 
Agents and 
Bankers
Tyz pes of Investment Advisors 
 Certified Financial Planners (CFP): A CFP is an 
individual who has met all of the Certified Financial 
Planner Board of Standards' requirements, which 
includes a minimum of experience and passing a 
comprehensive board exam. CFPs can have a broad 
knowledge of all areas of financial planning, including 
investing, retirement, insurance, taxes, insurance, and 
estate planning. 
 Registered Investment Advisers (RIAs): An RIA is a 
firm that is registered with a State regulatory body, 
such as the Securities division of the state's Attorney 
General's office, or the Securities Exchange 
Commission (SEC).An adviser is a company and an 
advisor is an individual, formally called an RIA rep.
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 Stock Brokers: These advisors, usually referred to as 
"full-service brokers" are representatives of a brokerage 
firm that is licensed to sell securities (i.e. stocks and 
bonds). These advisors typically get paid by 
commissions on the securities they sell. They are called 
"full service" because they (as well as the brokerage firm 
analysts) do all of the trading, advising, and analysis for 
the client. 
 Insurance Agents and Bankers: I put these two types 
of advisors into the same category because they are 
neither investment advisors nor financial planners but 
they can be licensed to sell mutual funds, stocks, bonds, 
and/or variable annuities that can be used as 
investments. Insurance and Bankers can also provide 
financial planning services.
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The Basic Ways Advisors 
z Get Paid
Commissions Fees Salary Plus 
Commission
 This type of Some advisors Many advisors, 
payment is typical don't get paid usually those 
of full-service commissions but found at banks 
brokers, which rather charge and insurance 
are the traditional fees directly to companies, get a 
"stockbrokers." the client based base salary and 
A commission, on the services they also get 
which can range provided. Some commissions or 
from $30 to $300 advisors will bonuses based 
or more, is paid charge fees on the products 
to the broker based on assets they sell.
whenever they under 
execute a trade management or 
they charge a 
one-time fixed fee 
for the type of 
service. 
Responsibilities of 
z Investment Advisers for Risk 
Mitigation
KYC 
compliance 
and Code 
of Conduct
Chinese Conflict of 
Walls interest
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Responsibilities of Investment 
Advisers for Risk Mitigation
 1. Chinese Walls
 The IA Regulations also mandate an investment adviser to maintain arm's length relationship between 
its investment advisory activities and other activities. It is in furtherance of this that the IA Regulations 
mandate a 'Chinese wall' between the investment advisory arm and other activities of an investment 
adviser. 
 2. Conflict of interest
 The IA Regulations set an extremely high threshold on disclosures relating to conflict of interests which 
may arise during course of the investment adviser's activities being undertaken. This includes keeping 
the client informed of any conflict of interest arising from various other activities carried out by the 
investment adviser, informing the client of any consideration / remuneration received by the investment 
adviser or its associates and subsidiaries.
 3. KYC compliance and Code of Conduct
 The investment adviser is also required to follow the Know Your Client ("KYC") guidelines specified by 
the SEBI from time.7 In addition, a prescribed 'Code of Conduct' is to be adhered by the investment 
adviser. The 'Code of Conduct' prescribes the following tenets: Honesty and fairness; diligence; 
effectively employing capabilities; gaining all relevant information relating to the clients.
fzee structure and capital adequacy 
requirement
Category of Application Registration/ Capital 
the Applicant Fee* (in Rs.) Ren ewal Adequacy 
Fee* (In Rs.)
Individual/Part 5,000/- 10,000/- 1,00,000/-
nership Firm
Body 25,000/- 5,00,000/- 25,00,000/-
Corporate/Limi
ted Liability 
Partnership 
Firm 
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Ezducational qualification for 
IA
 You need to have a professional 
qualification or a PG degree or 
diploma in finance, accountancy, 
business management, commerce, 
economics, capital market, banking, 
insurance or actuarial science form a 
recognized university or institution.
 Or a graduation in any discipline with 
an experience of at least five years in 
activities related to advice in financial 
products or securities or fund or asset 
or portfolio management.
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Certification For IA
 NISM-Series-X-A: Investment Adviser 
(Level 1) as well as NISM-Series-X-B: 
Investment Adviser (Level 2) 
certification.
 Or a certification on financial planning or 
fund or asset or portfolio management 
or investment advisory services from 
any other organization or institution 
including Financial Planning Standards 
Board India or any recognized stock 
exchange in India provided that such 
certification is accredited by NISM.
How to get registered 
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as an Investment 
 Make an application to SEBI in Form A as provided in 
the Regulations along with all the necessary Adviser
supporting documents.
 the applicant will receive a reply from SEBI within one 
month. However, the time taken for registration
 The applicant is advised to go through the SEBI 
(Investment Advisers) Regulations, 2013 for checking 
the eligibility criteria and such other details which 
may help expedite the registration process.
 As an integral part of the registration process, the 
applicant will submit the following 
a. Form A appropriately filled, numbered, duly signed 
and stamped. 
b. Application fees of Rs. 5,000/- by way of bank draft 
in favour of “The Securities and Exchange Board of 
India”, payable at Mumbai.
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 The applicant must mention the following in the 
covering letter:
  a. Whether the applicant is providing investment 
advisory services prior to these Regulations. If yes, 
provide details. 
 b. Details of the investment advice provided prior to 
such application. 
 c. It is applying for registration of as a new 
Investment Adviser providing investment advisory 
services.
 Once the application is approved you will have to 
pay a registration fees of Rs 10,000 within 15 
days
 The applicant shall also make an online application 
in terms of the guidelines as prescribed by SEBI 
from time to time.
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Requirement of registered 
investment advisor
         Invest in technology
 •Hardware (computers, printers, scanners)
 •Domain name and website
 •Email marketing solution
 •Customer relationship management software
 •Performance reporting software
 •Financial planning software
 •Client billing software
 •Client presentation/portfolio analytics
 •Social media compliance and archiving software
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THANK YOU
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