Glide Invest FAQ: Why is GlideInvest Advisory blocking me from using their services?

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.
  1. The  same  client  cannot  be  offered  both  advisory  and  distribution services within the group of the non-individual entity.
  2. 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.
  3. ‘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.