Registered Investment Adviser – The Way Forward | Shyam Sekhar | ithought Advisory

In recent years, SEBI created a new category of SEBI registered entities – the Registered Investment Adviser (RIA). The RIA model has proved to be a powerful way to deliver advice. The next transformation in investor centric creating better alignment between investors and advisers. Shyam Sekhar discusses how the new regulations will encourage a more symbiotic growth between advisers and investors and create a system built on trust and confidence.

Talk about the topic ria the way forward   new category of semi-registered entities   it’s been here for the last five six years and  it’s fast becoming a very powerful way for advice   to be delivered it has just undergone its next  transformation this transformation is clearly   investor centric it makes the alignment

Between  the investor and the advisor much better   how advisors construct their work how they  deliver advice and how they are compensated   firstly this change in the array regulation will  lead to more specialization when we saw the first   ria regulation it was principally constructed  direct option was also brought in 

Clients and advisors to explore a new way  of interacting engaging and doing business   on the one side the mutual fund industry has  not really reduced its total expense ratios   in the smaller sized fund schemes regulations  allow them to price their smaller schemes better   products then that cost tends to get added  

Direct option so the advisor and the investor   are not helped by how pricing in direct option in  the niche products is functioning which means the   advisor only has to go towards the larger products  which are very big assets basis and even if the   advisor gives his very best these products may  actually not meet the expectations

Of the investor   advisor to raise his level of specialization   it is only then that investors will appreciate  the role of the advisor is relevance to the   the ability of the advisor to translate   so the time has come for more specialization  which means the advisor now has to clearly   the regulation is still

Heavily weighed in   an innovative advisor has to move beyond what   is happening in the mutual fund space it is time  for much more specialization but that still does   not reduce the relevance of products as advisors  nuance their surveys improve the knowledge base   solution which could even be a product it is  

Go up advisors will not have the viability   smaller client will have to either do it himself   good advice there it would not be possible for   is my really because there are different   not make it viable for the advisor and if it  is not viable i think one should simply make a   clean break and not do it because

What you do  should be viable for you and you should be able   to give a good solution for the client otherwise  both are going to be unhappy so which means that   the threshold is going to definitely rise so only  larger clients will work with advisors and the   smarter advisors will work only with the larger  clients in

Conclusion the relationship between   evolved it’s going to be far more long lasting   they need to journey together from where they  begin to the place where the investment goals   by the investor are all achieved one by one   and provides more than ample benefits to  the investor who places faith in the ra  

Then it is going to be one where the products   essentially we are heading towards a phase where  the ra ecosystem will get progressively better   mutual fund ecosystem refuses  to fill at this point in time   be a system that stands out for trust and  confidence thank you for watching this podcast

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Registered Investment Adviser – The Way Forward | Shyam Sekhar | ithought Advisory By ithought advisory