In the past few months the regulators related financial services such as SEBI, IRDA are in overdrive mode. Several path breaking initiatives have been anounced. SEBI has removed entry load on all mutual funds. IRDA is initiating several proposals to reduce the cost of buying insurance products. Already the New Pension Scheme under PFRDA is without any selling intermediaries. A proposal is being made by a Committee set by Govt of India to do away with commission payable to the agents.
In all these initiatives, the objective is to make advisors answerable to their clients and bring in more transperancy for the process of selling financial products and services.
Are these initiatives going to help the investor? I think yes. It will take some time before the agents and investors get used to the new regime. Ultimately, transperancy is going bring more order to the existing chaos and allegations of mis-selling should decrease.
Part of the people are resisting the changes. This is a natural reaction by the people who have stopped learning. The Govt. should not be brow beaten by the no-sayers and carry on with these bold reforms which are in the interest of the common investor.