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NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Case Studies in Comprehensive Financial Advice

Which document best records the scope, fees, services and responsibilities agreed between an investment adviser and an individual client before advice is given?

The investment advisory agreement records the scope of services, fees and responsibilities between adviser and client. SEBI's investment adviser regulations require such an agreement before advice is given, whereas bank statements, annual reports and contract notes serve different purposes.

  1. AInvestment advisory agreementCorrect
  2. BClient's bank statement
  3. CAnnual report of the mutual fund
  4. DContract note issued by the broker

Explanation

Under the SEBI (Investment Advisers) Regulations, 2013, an adviser must enter into an agreement with the client setting out the terms, including services and fees. The other documents do not serve this purpose.

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