FPSB seeks regulatory organisation status
The Financial Planning Standards Board (FPSB) has sent a proposal to market regulator SEBI, seeking the role of first-level regulator for investment advisors.
By PTI |
NEW DELHI: The Financial Planning Standards Board (FPSB) has sent a proposal to market regulator SEBI, seeking the role of first-level regulator for investment advisors.
"We are of view that whoever interacts with the general public, whether an individual or an institution and gives financial advice, irrespective of the mode of compensation, should be made accountable for the advice given," FPSB India CEO Ranjeet S Mudholkar said.
FPSB India may be considered a potential regulatory organisation as the board by virtues of experience and ethics fits into the criteria of a regulatory organisation for investment advisors, he added.
Set up in 2001, the board has 41 of the country's leading financial services firms, including mutual funds, insurance companies and intermediaries as its members.
A paper presented to SEBI by FPSB recommended separating selling from advice and has proposed different certification requirements for the two.
They should be certified separately by different regulators, Mudholkar said.
"We are of view that whoever interacts with the general public, whether an individual or an institution and gives financial advice, irrespective of the mode of compensation, should be made accountable for the advice given," FPSB India CEO Ranjeet S Mudholkar said.
FPSB India may be considered a potential regulatory organisation as the board by virtues of experience and ethics fits into the criteria of a regulatory organisation for investment advisors, he added.
Set up in 2001, the board has 41 of the country's leading financial services firms, including mutual funds, insurance companies and intermediaries as its members.
A paper presented to SEBI by FPSB recommended separating selling from advice and has proposed different certification requirements for the two.
They should be certified separately by different regulators, Mudholkar said.
ADVERTISEMENT
The paper also suggested a common certification that fulfils the requirement of an investment advisor like Certified Financial Planner (CFP) or Associate Financial Planner (AFP) to bring about uniformity.
Financial planners deal with a variety of products and services like insurance, stocks, asset management, accounting and estate planning.
However, each of these services fall under their own ambit of regulation, insurance under Insurance Regulatory and Development Authority (IRDA), stocks and funds under SEBI, pension products under Pension Fund Regulatory and Development Authority (PFRDA) and so on.
The paper suggested having a single authority regulating intermediaries in general and financial planners in particular.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
