SEBI vide its Circular dated 06th April, 2023 issued to all Registered Investment Advisers, all Registered Research Analysts.
The Circular States:
SEBI observed that few investment advisers and research analysts use the brand name/trade name/logo more prominently in their advertisements, websites, publications, correspondences with clients and various documents while marketing their services rather than their name as registered with SEBI.
Investment Advisers and Research Analysts can still use the brand name/trade name/logo, SEBI has issued some guidelines to ensure transparency.
IAs and RAs may use the brand name/logo, they need to ensure that the information such as name of the IA/RA as registered with SEBI, its logo, its registration number and its complete address with telephone numbers are prominently displayed on their websites, display boards, advertisements, publications, KYC forms and client agreements, according to a circular. Also, the compliance officer, his telephone number and e-mail address, the name, telephone number and e-mail address of the grievance officer should be displayed prominently in statements or reports or any other form of correspondence with the client.
SEBI has also mandated the usage of the disclaimer, “Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors”. This disclaimer will now have to be mentioned on portal/web site, if any, notice boards, display boards, advertisements, publications, know your client forms, client agreements, statements or reports or any other form of correspondence with the client.
Also, SEBI has barred IAs and RAs from using its logo.
This circular shall come into force with effect from 1st May, 2023.
Link of the circular: https://www.sebi.gov.in/legal/circulars/apr-2023/usage-of-brand-name-trade-name-by-investment-advisers-ia-and-research-analysts-ra-_69839.html
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