SEBI Update - Portfolio Managers - Facilitating ease in digital on-boarding process for clients and enhancing transparency through disclosures

SEBI issued circular for Portfolio Managers - Facilitating ease in digital on-boarding process for clients and enhancing transparency through disclosures Based on the recommendations of the working group, a public consultation was carried out. The following has been decided:

Ease in digital on-boarding process for clients of Portfolio Managers

While on-boarding a client, Portfolio Manager shall ensure that:

a) The client has understood the structure for fees and charges.

b) The new client has separately signed the annexure on fees and charges and added a note, that they have understood the structure for fees and charges, in the following manner:

i) Handwritten, in case the client is on-boarded through physical mode.

ii) Typed using keyboard or written electronically using fingers/a stylus pen, in case the client is on-boarded through digital mode. The above provision shall be applicable from October 01, 2024

Fee calculation tool

Portfolio Manager shall provide a fee calculation tool to all clients that highlights various fee options with multi-year fee calculations. Such tool shall incorporate the high watermark principle, wherever applicable.

Additional fees disclosures

PMS–client agreement Periodic reports

Link - View Circular