Ease of Doing Business – Relaxation in certification requirement for Persons Associated with Investment Advice (PAIA) – Sales and other non-core services
Summary
SEBI introduces a lighter NISM certification module specifically for Persons Associated with Investment Advice (PAIA) engaged in sales and non-core services. Existing PAIAs holding the standard Level 1 and Level 2 certifications are exempt from the new requirement until their current certificates expire. The circular mandates the IAASB to amend bye-laws and disseminate these provisions to registered Investment Advisers.
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Based on the feedback from market participants and as a step towards ease of doing business, it has been decided to specify a lighter NISM certification module for PAIA, such as sales staff, relationship managers and other staff, who only perform sales and other non-core services.
PAIA, who perform only sales and other non-core services, shall obtain certification from NISM by passing the “NISM Series–XXV-B: Persons Associated with Investment Advice (Sales and Other Non-Core Services) Certification Examination”
PAIA, other than those who perform sales and other non-core services, shall continue to obtain certification from NISM by passing the “NISM Series-X-A: Investment Adviser (Level 1) Certification Examination” and the “NISM Series- X-B: Investment Adviser (Level 2) Certification Examination”.
The PAIA (as referred at paragraph 4.1 above) who have already obtained the NISM Series-X-A and NISM Series-X-B certifications, as on the date of this circular, shall not be required to undertake the NISM Series-XXV-B certification at this stage. Such PAIA shall obtain NISM Series-XXV-B certification only before expiry of the validity of their existing certifications.
The provisions of this circular shall come into force with immediate effect.
make necessary amendments to the relevant bye-laws and rules, for the implementation of this circular;
bring the provisions of this circular to the notice of the registered Investment Advisers and also disseminate the same on its website.
This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 7 of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 and Regulation 3(1) of SEBI (Certification of Associated Persons in the Securities Markets) Regulations, 2007
Source: SecMarx — Ease of Doing Business – Relaxation in certification requirement for Persons Associated with Investment Advice (PAIA) – Sales and other non-core services. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.