Jung Woo Sung and Lee Jung Jae’s Company Accused of Insider Trading

The Securities and Exchange Board of India (SEBI) recently announced new guidelines for investment advisors, aiming to enhance transparency and investor protection. These guidelines require investment advisors to segregate their advisory and distribution activities, ensuring that they prioritize client interests.

Under the new rules, investment advisors cannot receive any commission or remuneration from third parties for selling financial products. This restriction aims to eliminate potential conflicts of interest and ensure that advisors provide unbiased advice tailored to their clients’ needs.

Additionally, these guidelines require investment advisors to provide a standardized fee structure to clients, ensuring clarity and transparency in the fee-charging process. This move aims to protect investors from hidden charges and ensure that they are aware of the costs associated with obtaining financial advice.

Investment advisors are also required to review their clients’ financial goals and investment portfolios at least once a year. This annual review aims to ensure that advisors stay updated on their clients’ financial situations and adjust their advice as needed to help clients achieve their goals.

Overall, these new guidelines from SEBI aim to promote ethical practices among investment advisors, safeguard investor interests, and promote a more transparent and efficient advisory process. Investors can now expect more clarity, transparency, and personalized advice when seeking financial guidance from investment advisors.