The Association of Registered Investment Advisers (ARIA) on Thursday launched an initiative to help investor families and financial advisors based on specific challenges, such as processes related to the transfer of assets on the death of an investor.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The initiative is also focused on leading advocacy for the standardisation of these processes. It aims to bring together all information that an investor needs right from things to keep in mind to processes followed by different financial institutions and banks, among others.

See Zee Business Live TV Streaming Below:

The initiative, #ARIATrulyCares, was launched by veteran banker K V Kamath.

"#ARIATrulyCares is a commendable initiative by ARIA in these difficult times, when it is crucial to help people who, after losing a loved one, are struggling to seek assistance in financial matters.

"I am confident that by evolving into an authoritative resource for investors and investment advisors, ARIA is fulfilling a big need that today's exponentially growing retail investor ecosystem needs," Kamath said.

Earlier, the assets that somebody left behind were not substantial, particularly the liquid assets. However, in the past 20 years, the assets such as bank deposits, mutual funds, demat accounts of a person, who has passed on, are increasing, he said.

"Succession planning should start right at the time you open a bank account, who do you want to be your nominee, if not a joint account holder.

"This, at least, solves part of the (succession) issue. I think people are now aware that they need to plan succession and have proper nominations," he said.

ARIA also released its first investor advocacy white paper, 'Reimagining Nominations: Making Succession Smoother and Simpler', written by ICICI Bank Group General Counsel Pramod Rao. He has written the paper in his personal capacity.

The paper provides insights into nomination facilities for financial assets, specifies the measures required across financial assets to simplify and ease the lives of investors and more importantly their families and successors.

These measures will aid families, legal heirs and successors who would grieve the loss of a loved one and deserve a simplified standard process for accessing financial assets in their time of need, ARIA said in a statement.

ARIA was formed in 2017-18 to support the development of the investment advisor community, post the introduction of the investment advisor regulations by markets regulator Sebi.