Investment Advisory Services for Accredited Investors
Summary
This circular exempts accredited investors from the fee limits and modes specified in a previous 2020 SEBI circular. Instead, fees for these clients are determined by bilaterally negotiated contractual terms between the Investment Adviser and the client. The exemption is issued under Section 11(1) of the SEBI Act and Regulation 29 of the IA Regulations to protect investor interests.
Text
The amendment to SEBI (Investment Advisers) Regulations, 2013 notified on August 03, 2021 read with the Circular dated August 26, 2021 inter-alia introduced the concept/framework of “accredited investor” in IA Regulations.
In case of accredited investors, the limits and modes of fees payable to the IA shall be governed through bilaterally negotiated contractual terms and the provisions of para 2(iii) of the Circular shall not be applicable.
This circular is issued in exercise of the powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 and Regulation 29 of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013.
Source: SecMarx — Investment Advisory Services for Accredited Investors. Verbatim text is public record; SecMarx structuring (linkage to applying orders) is cited to us.