Q.19 : I am an individual RIA. My wife and son (both MBA) have passed NISM’s X-A and X-B exams. My understanding is they can be employed as persons associated with investment advice even though they don’t meet the experience criteria of –

(ii) an experience of at least two years in activities relating to advice in financial products or securities or fund or asset or portfolio management:

Because it further says

Provided that investment advisers registered under these regulations as on the date of commencement of these regulations shall ensure that the individual investment adviser or principal officer of a non-individual investment adviser registered under these regulations and persons associated with investment advice comply with such qualification and experience requirements within three years:

which means that  I have 3 years to fulfill this requirement where eventually the requirement will get addressed after 2 years. Please confirm if my understanding is correct and they can be employed as persons associated with investment advice.

Response:

Firstly, check whether you, as an Individual RIA is registered as on 30.9.2020.

If yes, then you can take the benefit of 3 years’ time to comply with the new qualification and experience requirements for RIA, Principal Officer and PAIA who were existing as on that date i.e. 30.9.2020.

For newly appointed persons after 30.9.2020, specified qualification, experience and certification requirements should be met.

In your case, if PAIA is going to be employed now with you, then 2 years experience should have been already met.

— Replied by: ARIA forum expert, CA. Sanjay Kadel (sk@sanjaykadel.com)

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