Sellers to advisors: Although there are financial advisors who are genuine in their advice, there are some players who push third party products to clients solely based on the gains they make by selling such products. SEBI’s Regulations for Investment Advisers, released last year specified several requirements and stipulations for one to become a financial adviser. This is the first wind of change we can see in this direction. Going forward, we expect clients giving more and more importance to pure play advisors as compared to those who also sell financial products. This is on the back of receiving unbiased advice, keeping in mind only the interests of the clients.
Importance on certifications: Customers will soon start giving more importance to financial advisers who possess certifications and licenses, than it is done at present. Advisers possessing SEBI registration will definitely stand to gain and this can prove to be a huge positive in the competitive scenario. SEBI’s Regulations for Investment Advisers already speaks about such requirements and it is only a matter of time before clients start to realize its importance.
Client confidentiality: Client confidentiality and privacy of the client’s information is of utmost importance in a financial adviser’s business. Under no circumstance should this be compromised or misused by the adviser. Going forward, it is expected that the regulator will bring out a strong set of guidelines to ensure client confidentiality. Advisers on their part will be expected to ensure that what is entrusted to them is absolutely safe and professionalism will be maintained at all instances.
While the above is an original article written by us, we are inspired by a related article on Advisor Perspectives and the associated checklist.
This article was originally published on Network FP