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    Question

    What is the maximum fee that an Investment Adviser (IA)

    is permitted to charge on assets held under a pre-existing distribution arrangement, when providing a second opinion?Ā 
    A 1% of asset value per annum Correct Answer Incorrect Answer
    B 2% of asset value per annum Correct Answer Incorrect Answer
    C 2.5% of asset value per annum Correct Answer Incorrect Answer
    D 3% of asset value per annum Correct Answer Incorrect Answer
    E No upper limit prescribed Correct Answer Incorrect Answer

    Solution

    As per the SEBI circular dated October 30, 2025, Investment Advisers are permitted to charge fees on assets under a pr e- existing distribution arrangement for the purpose of providing a second opinion, subject to a maximum limit of 2.5% of the asset value per annum under the AUA-based fee model. Ā 

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