Chairman of the FOUNDATION OF INDEPENDENT FINANCIAL ADVISORS
Evolution and Regulatory Challenges – Lessons from India
The Foundation of Independent Financial Advisors (FIFA) is a body representing Advisors and Distributors of Mutual Funds in India, commonly known as Independent Financial Advisors (IFAs).
During my recent meeting with FECIF I realised the common vision that both associations have for their members, investors, consumers and the industry. Financial intermediation is facing a regulatory backlash on a global scale, which is generally unwarranted.
Excessive and unwarranted regulatory backlash
Post the 2008 global financial meltdown, regulators across the world have been pushing forward a number of regulatory changes aimed at eliminating conflict of interest, providing greater transparency and enhanced disclosures. Unfortunately, what has been lost sight off is that the problems that led to that meltdown were from different segments of the financial markets; namely the housing/mortgage market, alternative investments and excessive leverage by the large investment banks and financial institutions - not the advisory sector or mutual fund industry...