SEBI introduces lighter certification framework for non-core staff in investment advisory roles

Markets regulator SEBI on Wednesday introduced a lighter certification framework for sales and non-core staff in investment advisory roles to ensure ease of doing business.The initiative streamlines requirements for employees managing client relations, thereby reducing the compliance burden on firms.

”Based on the feedback from market participants and as a step towards ease of doing business, it has been decided to specify a lighter NISM certification module for PAIA, such as sales staff, relationship managers and other staff, who only perform sales and other non-core services,” SEBI said in its circular.
These staff have contacts with the client but are not directly associated or involved in investment advice-related aspects, it added.The regulator said, ”PAIA who perform only sales and other non-core services, shall obtain certification from NISM by passing the ’NISM Series–XXV-B’.” PAIA, other than those who perform sales and other non-core services, will continue to obtain certification from NISM by passing the ’NISM Series-X-A: Investment Adviser (Level 1) certification examination’ and the ’NISM SeriesX-B: Investment Adviser (Level 2) certification examination.

Passing the NISM certification exam ensures domain knowledge and professional preparedness.

The provisions of this circular will come into force with immediate effect.