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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 maintenance of records by a registered investment adviser?

A registered investment adviser must preserve its records, including risk profile, suitability assessment and advice given, for at least five years. The period does not depend on the client relationship ending, client consent, or fee levels, because regulators need these records for inspection.

  1. ARecords must be preserved for a minimum of five yearsCorrect
  2. BRecords need to be kept only until the client relationship ends
  3. CRecords are required only for clients paying above a fixed fee threshold
  4. DRecords may be destroyed after one year if the client consents

Explanation

The Investment Advisers Regulations require advisers to maintain records of advice, risk profiling, suitability and communications for a minimum of five years. Retaining records only until the relationship ends or one year is shorter than the required period, and no fee threshold exempts clients.

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