SEBI 4th consultation paper on Investment Adviser

SEBI recently have issued 4th consultation paper on Investment Adviser regulation.
key excerpts of the same are as follows:

• Client level segregation of advisory and distribution services.
• IA shall provide implementation services to its advisory clients only through direct schemes/direct code in the securities market.
• Fees can be charged either AUA based or fixed fees. In AUA based, maximum fees shall be upto 2.5 % of AUA p.a. In fixed fees, maximum fees can be charged upto 75000 p.a.
• In order to get registered as investment advisor, person need to fulfil qualification, certification and experience conditions.
• Networth increased for individual IA to 10 lakhs from 1 lakh and for non-individual 50 lakhs from present 25 lakhs.
• Mandatory corporatization for individual IAs who have client base of more than 150 or AUA more than 40 cr.
• Compliance audit to be done within 3 months from the end of financial year and reports should be submitted to SEBI.