Annual Compliance Certificate for Client Level Segregation by Non individual Investment Advisers and timeline for submission of periodic reports
Summary
This circular modifies the Master Circular for Investment Advisers to allow non-individual IAs to obtain annual compliance certificates from any auditor regarding client-level segregation. It also extends the timeline for submitting periodic reports to IAASB to 30 days from the end of the reporting period. The provisions come into immediate effect and direct IAASB to disseminate these changes and update its regulatory framework.
Text
A non-individual investment adviser shall maintain on record an annual certificate from its statutory auditor confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations.
It has been decided to allow a non-individual IA to obtain annual compliance certificate from any auditor in respect of abovementioned requirement.
The IAs shall maintain on record an annual certificate from an auditor confirming compliance with the client level segregation requirements as specified in Regulation 22 of the IA Regulations. Such annual certificate shall be obtained within 6 months of the end of the financial year and form part of compliance audit, in terms of Regulation 19(3) of the IA Regulations.
As a step towards ease of doing business, it has been decided to grant a period of 30 days to make submission of periodic reports to IAASB.
For the subsequent half-yearly periods, IAs shall submit periodic reports within 30 days from the end of the half-yearly period for which details are to be furnished.
The provisions of this circular shall come into force with immediate effect.
IAASB is directed to bring the provisions of this circular to the notice of the investment advisers and also disseminate the same on its website; make necessary amendments to the relevant Bye-laws, Guidelines, Standard Operating Procedures, Rules and Regulations for the implementation of the above decisions.
This circular is issued in exercise of powers conferred under Section 11(1) of Chapter IV of the Securities and Exchange Board of India Act, 1992, Regulation 14, 15(12) and 22(5) of the IA Regulations, to protect the interests of investors in securities and to promote the development of, and to regulate the securities markets.
Source: SecMarx — Annual Compliance Certificate for Client Level Segregation by Non individual Investment Advisers and timeline for submission of periodic reports. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.