Why is Glide Invest advisory blocking me from using their services?
Glide Invest is an initiative by the Motilal Oswal group. As a leader in the financial services business, the Motilal Oswal group has multiple entities that provide several services to investors, including Broking and Distribution, Mutual Funds, Wealth Management, etc. As per regulations by SEBI, companies across the group cannot offer both distribution and investment advisory services to the same customer.
While initiating your KYC process, we found your PAN no in the group's database, meaning that you are currently availing distribution services from one of the group company. As a result, we cannot offer you our advisory services. However, you may follow this process
to opt-out from services provided by other Motilal Oswal entities and avail advisory services through Glide Invest.
Below is the snippet from the SEBI circular explaining the same.
"Client level segregation of advisory and distribution activities."
(3) A non-individual investment adviser shall have client level segregation at group level for investment advisory and distribution services. Explanation.
- The same client cannot be offered both advisory and distribution services within the group of the non-individual entity.
- A client can either be an advisory client where no distributor consideration is received at the group level or distribution services client where no advisory fee is collected from the client at the group level.
- ‘Group’ for this purpose shall mean an entity which is a holding, subsidiary, associate, subsidiary of a holding company to which it is also a subsidiary or an investing company or the venturer of the company as per the provisions of Companies Act, 2013 for non-individual investment adviser which is a company under the said Act and in any other case, an entity which has a controlling interest or is subject to the controlling interest of a non-individual investment adviser.
(4) Non-individual 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.
(5) Compliance and monitoring process for client segregation at group or family level shall be in accordance with the guidelines specified by the Board.”
You can read the full circular here
or see the attached document.