Slug SEBI asks investment advisers to choose between sale or advise
As the fees or commission varies based on the nature of products, an investment adviser is likely to recommend a product which gives the maximum incentive on distribution. Invariably, clients are advised where the fees are more and this goes against the best interest of clients and gives rise to a conflict of interest a situation which SEBI is addressing.
Investment advisers can either distribute financial products or advise on them to investors, but cannot do both, as per Markets regulator SEBI. Photo: Reuters