Regulatory Alerts2025-10-30
SEBI Circular on Enabling Investment Advisers to Provide Second Opinion on Assets Under Pre-existing Distribution Arrangement
The Securities and Exchange Board of India (SEBI) has revised its Master Circular for Investment Advisers to allow advisers to charge fees on assets held under pre-existing distribution arrangements when providing a second opinion. This measure permits Investment Advisers to levy an Asset Under Advice fee capped at 2.5% of the asset value per annum, provided they annually disclose and obtain client consent regarding additional distributor costs. The revised clause explicitly updates previous restrictions that prohibited fee charging on such assets to facilitate investor access to independent advisory services.
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