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NISM Certifications · NISM-Series-X-A: Investment Adviser (Level 1) · Key Regulations

Under the SEBI (Investment Advisers) Regulations, 2013, which of the following best describes the requirement regarding an investment adviser's client records?

An investment adviser must keep client records, such as risk profile, suitability assessment, agreements and advice given, for the period prescribed by the regulations and produce them for SEBI inspection. Termination of the client relationship does not end this obligation.

  1. ARecords need not be kept once the client terminates the relationship
  2. BRecords must be maintained for the period specified by the regulations and be available for SEBI inspectionCorrect
  3. CRecords need be maintained only for advice given to retail clients above a fixed investment size
  4. DRecords may be held only by the client and not by the adviser

Explanation

The regulations require investment advisers to maintain records of advice, risk profiling, suitability and agreements for a prescribed period and to make them available for inspection by SEBI. Ending the relationship does not remove this duty, so the other options are wrong.

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