Ease of doing business measures -Enabling Investment Advisers (“IAs”) to provide second opinion to clients on assets under pre-existing distribution arrangement
SEBI, vide its circular dated October 30, 2025, allows Investment Advisers (IAs) to provide a second opinion to clients on assets held under pre-existing distribution arrangements with other entities. IAs can now charge a fee up to 2.5% per annum of such asset value under the Assets Under Advice (AUA) model, provided they obtain annual client consent and disclose that clients will continue to bear distributor costs. This amendment aims to enhance investor access to independent advice and flexibility while maintaining transparency in fee disclosure and advisory practices.
