New ASCI guidelines require financial influencers to be registered with SEBI

The Advertising Standards Council of India (ASCI) has made it mandatory for financial advisors or “financial influencers” to register with the Securities and Exchange Board of India (Sebi) and disclose their credentials in its revised advertising guidelines.

What is ASCI?

The Advertising Standards Council of India (ASCI) is a self-regulatory and non-governmental organization that was founded in 1985. The council’s members are well-known Indian companies, including advertisers, public relations firms, media and advertising agencies, and other advertising professionals.

What is the role of ASCI?

The aim of ASCI is to maintain and enhance the public’s confidence in advertising. Their mandate is that all advertising material must be truthful, legal and honest, decent and not objectify women, safe for consumers – especially children, and last but not the least, fair to their competitors.

Is the ASCI code enforceable?

As we have seen ASCI is a self-regulatory body just like ICSI, ICAI, etc. The code of conduct prescribed by ASCI is binding on its members. Hence as ASCI has now mandated financial influencers to register as ‘Investment Advisors’ they should immediately register themselves. They should also follow other guidelines provided by ASCI.

What is the procedure for getting registered as ‘Investment Advisors’ with SEBI?

SEBI has a dedicated legislation termed SEBI (Investment Advisors) Regulations, 2013 which is being amended from time to time. It provides qualifications and procedures for registration.

Disclaimer:This article provides general information existing at the time of preparation and we take no responsibility to update it with the subsequent changes in the law. The article is intended as a news update and Affluence Advisory neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this article. It is recommended that professional advice be taken based on specific facts and circumstances. This article does not substitute the need to refer to the original pronouncement