Unveiling the Importance of Corporate RIA Financial Services


Unveiling the Importance of Corporate RIA Financial Services

Hum Fauji is now a Corporate Registered Investment Advisor (Corporate RIA). This prestigious licence from SEBI places us amongst an elite, handful group of companies nationwide signifying our written commitment to an unbiased, professional and transparent financial advice. It ensures that your financial well-being remains our top priority, always and everytime.

Why becoming a Corporate RIA is a big deal?


Imagine a financial advisor who:

  • Plays it straight: Our RIA division earns its living solely from your fees. That means our advice is 100% objective, tailored to your unique needs and there’s no conflict of interest anywhere.
  • Raises the bar on expertise: Our entire team boasts the highest laid down qualifications of this profession, ensuring your money is in the best possible hands in the country.
  • Unwavering Ethics: RIAs like Hum Fauji Initiatives are legally bound to prioritize your financial well-being above all else – no hidden agendas or conflicts of interest allowed, which is monitored closely by the SEBI.

SEBI is extremely selective in awarding the ‘Corporate RIA’ tag to a financial planning company – and it does so only when it is convinced that the company adheres to its highest fiduciary and professional advice standards.

So, what exactly does being a Corporate RIA mean?
Registered Investment Advisors (RIAs) are directly overseen by SEBI, subject to stringent compliance requirements that far surpass those of non-RIA financial planners. To eliminate conflicts of interest, RIAs can only earn fees directly from their clients and can have no other sources of income.

Why is this relevant to you?

  • Peace of mind: Trust that your financial decisions are guided by unwavering ethics and transparency of the highest order.
  • Goal-Oriented Approach: We go the extra mile to understand your aspirations and craft a lifetime continuity plan that makes your future financial goals a reality.
  • Reduced risk, maximized returns: Our comprehensive approach and rigorous risk assessment ensures you reach your financial milestones with confidence.

Why does our new licence matter to you as an investor?

Our Corporate RIA status ensures that: –

  • ‘Hum Fauji Initiatives’ willingly subjects itself to SEBI’s stringent scrutiny, demonstrating our commitment to always prioritising your interests.
  • Our team members possess the professional qualifications mandated by SEBI to expertly handle your financial plans and portfolios.
  • We go to great lengths to disclose the risks and suitability of investments recommended to our investors.

What changes at Hum Fauji Initiatives after this license?
Same great service, but now an official stamp of approval: While our commitment to transparency and client-centricity has always been our mantra for over 14 years, the RIA license gives you an extra layer of assurance.

What about existing ‘regular’ clients of Hum Fauji Initiatives and other financial advisors who would want to take Hum Fauji’s RIA services?
A Corporate RIA like ours is now allowed to run two ‘Chinese Wall separated’ divisions within the company: –

  • Regular Clients who are given products like mutual funds (MFs), corporate FDs, Govt Bonds, life and general insurance, etc where we earn a commission and hence, do not charge any fee from our investors.
  • Fee-only clients who are given similar products as for regular clients but in the ‘direct’ mode which is cheaper since there is no commission component for us there. For our living, we charge a quarterly fee from the ‘fee-only’ clients.

For our existing clients in the regular mode, this transition does not fundamentally alter the nature of our relationship. However, those considering shifting to RIA services should be aware of potential exit loads and taxation, as it is considered a ‘sale and purchase’ transition. Your financial planner in the company is ever-ready to help you by discussing this and should you decide to change over to the fee-only mode, he/she will happily take you ahead through this transition smoothly.

New clients are welcome to join us as fee-only clients, enjoying the benefits of our famous unbiased advice and the ability to receive guidance on products and services not managed by us. Of course, our regular mode is also open as always and we will guide you on what mode is better for you. As a company, we have no bias towards any mode.

To proceed ahead with us, simply express your interest, and we will guide you through the process. Don’t forget to mention your connection with the Indian armed forces when you contact us, as we exclusively serve armed forces officers (serving or retired), their parents and their children only based anywhere in the world.

Let Hum Fauji, India’s leading ethical and professional financial planning company, be your trusted partner on your path to financial success.

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