I intend to form a LLP or Private Limited Company and then give NiSM certifications exams? How does it work? On NiSM registration page, it is asking for individual details, how to register as LLP or company? I don’t want to become Registered Investment Advisor or Research Analyst as Individual but rather I want the entity to become RIA or Research Analyst.
Don’t think the certificate can be on entity name, you can give the exam and link it to your entity.
If the individual is sub broker or authorized person registered with exchange then due to conflict of interest, that individual can’t give NiSM exam in his name. So what to do in this case?
Then there is no way, same user can’t be AP who is earning brokerage and can advice users as RIA. Maybe you should go through RIA circular once again, I think even direct family should not involve as AP and other acting as RIA.
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I was going through the Investment Adviser Regulation on SEBI website and found this on page 7 point (d):
in case the applicant is a firm or a limited liability partnership, the principal officer and all persons associated with investment advice of the applicant are appropriately qualified and certified as specified in regulation 7
From the above, it seems as if not every partner of LLP should be certified and only a few would do. What I don’t understand from the above is who can be the principal officer? As in LLP, there are only partners and from what I know, there is no concept of principal officer. Maybe it is just an internal term and any one of the partner can internally be understood as principal officer who will give NiSM exams in his name?
So the other main partner who is also AP in individual capacity doesn’t have to be principal officer and as a result, no conflict of interest should arise?
Another interesting point is there on page number 12:
An investment adviser shall ensure that in case of any conflict of interest of the investment advisory activities with other activities, such conflict of interest shall be disclosed to the client.
Does the above mean that even conflict of interest is acceptable as long as client is informed about it? So in case an individual is registered as AP and also NiSM certified can continue to do both as long as disclaimer is there informing about both roles?
And on the last page number 32 point number 7 under Code of Conduct:
An investment adviser shall try to avoid conflicts of interest as far as possible and when they cannot be avoided, it shall ensure that appropriate disclosures are made to the clients and that the clients are fairly treated.
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Maybe @Sensibull could be able to advise about this. Recently I had come across one of their videos (from 8:24), where they mentioned that Sensibull (aka Riskilla Software Technologies Private Limited) has the Research Analyst certification and not everyone