The International Financial Services Centres Authority vide notification dated 3rd July, 2023 has issued the International Financial Services Centres Authority (Capital Market Intermediaries) (Amendment) Regulations, 2023. The amendment has clarified that “distributor” means a person who for remuneration engages with clients on behalf of an issuer or a service provider to facilitate investment or subscription into “capital market products” or “capital market services”.
If same entity is operating as both distributor and investment advisor, such investment adviser shall maintain an arm’s length relationship between its activities as investment adviser and distributor by providing advisory services through a separately identifiable department or division.
