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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 is a requirement relating to the records an investment adviser must maintain?

Investment advisers must keep records such as risk profile, suitability assessment, advice and fee details for at least five years. The duty does not end with the client relationship and is not limited to large clients, so five years is the correct answer.

  1. ARecords must be kept for a minimum period of five yearsCorrect
  2. BRecords need to be kept only until the client relationship ends
  3. CRecords are required only for clients paying fees above a threshold
  4. DRecords need not include the risk profiling of the client

Explanation

Investment advisers must maintain records of risk profiling, suitability, advice given, communications and fees for the period specified by SEBI, which is at least five years. Keeping them only until the relationship ends is wrong because obligations continue after termination. Risk profiling is a required record.

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