Lesson 21 of 50 for advisers · A client review: the data checklist · 4 min read · Reviewed 13 Nov 2026
An RIA needs a signed advisory agreement, a risk profile the client has agreed to, and a suitability assessment before any advice, kept up on an ongoing basis. Advice conversations are recorded: signed notes, call recordings, email or SMS. An MFD keeps KYC records and its correspondence on suitability and the client’s consent or dissent.
An RIA signs an advisory agreement with each client, with SEBI’s standard terms. Until it is signed, the adviser may neither advise nor charge.
Advice comes only after a risk profile the client has agreed to, by registered email or on paper. Profiling and suitability continue on an ongoing basis, with no fixed review interval.
Every advice conversation is recorded: a note signed by the client, a call recording, email from the registered address or SMS. Records start at the first contact, prospects included.
A distributor asks about the client’s finances, experience and goals, keeps KYC records, and keeps its correspondence on suitability with the client’s consent or dissent.
Key idea: A distributor must disclose the commission on every competing scheme it recommends.
Try the short quiz on this page to check what stuck.
Yes, with an Aadhaar e-sign through DigiLocker, or in person.
Yes. SEBI’s standard terms say the assessed risk profile is shared with the client.
Only through banks: account-payee cheque, demand draft or direct credit. Never cash.
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