NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Key Regulations
Under the SEBI (Investment Advisers) Regulations, 2013, which of the following is the minimum requirement regarding how an investment adviser should treat client records?
An investment adviser must maintain records of client profiling, suitability assessment and advice for the period prescribed under the SEBI regulations and make them available to SEBI on inspection. Selective retention or discarding on ending the relationship is not permitted.
- ARecords may be discarded once the client relationship ends
- BRecords must be maintained for the period specified by the Regulations and be available for SEBI inspectionCorrect
- CRecords need to be kept only for advice that resulted in a loss
- DRecords are required only for clients who invest above a threshold amount
Explanation
Investment advisers must maintain records of client interactions, risk profiling, suitability and advice for the period prescribed by the Regulations, and make them available for inspection. Discarding records on termination or keeping only selective records breaches the requirement.
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