SEBI issued circular for Portfolio Managers – Facilitating ease in digital on-boarding process for clients and enhancing transparency through disclosures
Based on the recommendations of the working group, a public consultation was carried out. The following has been decided:
Ease in digital on-boarding process for clients of Portfolio Managers
While on-boarding a client, Portfolio Manager shall ensure that:
a) The client has understood the structure for fees and charges.
b) The new client has separately signed the annexure on fees and charges and added a note, that they have understood the structure for fees and charges, in the following manner:
i) Handwritten, in case the client is on-boarded through physical mode.
ii) Typed using keyboard or written electronically using fingers/a stylus pen, in case the client is on-boarded through digital mode.
The above provision shall be applicable from October 01, 2024
Fee calculation tool
Portfolio Manager shall provide a fee calculation tool to all clients that highlights various fee options with multi-year fee calculations. Such tool shall incorporate the high watermark principle, wherever applicable.
Additional fees disclosures
PMS–client agreement
Periodic reports
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