Portfolio Managers - Facilitating ease in digital on-boarding process for clients and enhancing transparency through disclosures

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....ions, 2020 and recommend measures to promote ease of doing business for Portfolio Managers. Based on the recommendations of the working group, a public consultation was carried out. 2. Pursuant to the above, the following has been decided: 2.1. Ease in digital on-boarding process for clients of Portfolio Managers 2.1.1. Regulation 22(1) of SEBI (Portfolio Managers) Regulations, 2020, inter-alia states that a portfolio manager shall, before taking up an assignment of management of funds and portfolio on behalf of a client, enter into an agreement in writing with such client that clearly defines the inter-se relationship and set out their mutual rights, liabilities and obligations relating to management of portfolio containing the details ....

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....ll be provided in advance to all new clients, on-boarded on or after October 01, 2024. 2.3. Additional fees disclosures 2.3.1. PMS-client agreement a) In partial modification to the Clause 4.3.1 of Master Circular, whenever performance fees is charged to the client, the annexure for fees and charges to the PMS-client agreement, shall also contain the following additional fee illustrations: * One year and multi-year fee illustrations that cover different scenarios viz. increase in the portfolio value by a certain percentage, decrease in the portfolio value by a certain percentage and when the portfolio value remains unchanged. The said illustrations shall also suitably incorporate the high watermark principle. b) The above illustrati....