SEBI Guidelines on Participation of Depositories and AMCs as FIPs in Account Aggregator framework
SEBI
Guidelines on Participation of Depositories and AMCs as FIPs in Account
Aggregator framework
SEBI
vide SEBI/HO/MRD/DCAP/P/CIR/2022/110 August 19, 2022 addressed to Depositories
and Asset Management Companies, released Guidelines on Participation of Depositories
and AMCs Asset Management Companies Financial Information Providers in Account
Aggregator framework
Depositories
and AMCs are only FIPs and not FIUs
Under
the AA framework,
FIPs
- Financial Information Providers (FIPs) are institutions that function as
stewards of user data. These are the banks, mutual funds, pension funds, etc.
that represent the ‘source’ of personal or business data which FIUs can access
via requests through an Account Aggregator.
FIUs
- “Financial Information User’. An FIU consumes the data from an FIP to provide
various services to the end consumer. For e.g. a lending Bank wants access to
the borrower’s data to determine if a borrower qualifies for a loan. The
lending Bank is the FIU. Banks play a dual role – both as an FIP and an FIU. Ex
– Lending firms, personal finance, wealth management companies
Depositories
and AMCs cannot be FIUs as they have no need of financial information of their account
holders.
The
highlights are as under: -
·
Asset
Management Companies (AMCs) will operate through their Registrar and Transfer
Agents (RTAs)
·
FIPs
in securities market shall enter into a contractual framework with the AAs, and
the same shall distinctly specify the following:
·
Rights
and obligations of each party
·
Modalities
of Dispute Resolution mechanism
·
The
FIPs in the securities markets shall share the “Financial Information” pertaining
to securities markets, through the AA only on receipt of a valid consent artefact
from the customer through the Account Aggregator.
·
All
responses of the FIPs in the securities markets shall be in real time.
·
To
enable these data flows, the FIPs in the securities markets shall:
·
implement
interfaces that will allow an Account Aggregator to submit consent artefacts,
and authenticate each other, and would enable secure flow of financial
information to the AA;
·
adopt
means to verify the consent including digital signatures, if any, contained in
the consent artefact;
·
implement
means to digitally sign the financial information that is shared by them about
the customers;
·
maintain
a log of all information sharing requests and the actions performed by them
pursuant to such requests.
·
The
participation of depositories as FIPs in the AA ecosystem shall not impact the existing
mechanism as per circular CIR/MRD/DP31/2014 dated November 12, 2014 of
issuances of Consolidated Account Statement to the investors by depositories or
AMCs/MF-RTAs providing consolidated information of the mutual fund investments
and holdings of investors in demat accounts.
·
The
Financial Information Providers (FIPs) in securities market must disclose prominently
on their websites the names of the Account Aggregators through which the FIP
shares the information about assets held with respect to securities markets
with the customers and Financial Information Users (FIUs).
·
This means
all the AA authorised by Reserve Bank of India will not be able to shares the
customers data, as each AA has to individually sign up with the respective Depo
and AMCs. Not sure how customer friendly this is
A
depository can be an organization, bank, or institution that holds securities
and assists in the trading of securities.
In
India, there are two depositories: National Securities Depositories Ltd (NSDL)
and Central Securities Depositories Ltd (CDSL) opertaing in the Securities
Market.
In
India, a Depository Participant (DP) is described as an Agent of the
depository. They are the intermediaries between the depository and the
investors.
Depository
Participant (DP) are directly not part of the Account Aggregator framework.
Registrar
and Transfer Agents are the trusts or
institutions that register and maintain detailed records of the transactions of
investors for the convenience of mutual fund houses.
Read
the full SEBI circular @ https://www.sebi.gov.in/legal/circulars/aug-2022/participation-as-financial-information-providers-in-account-aggregator-framework_62157.html
Trust
by the end of the calendar year, both the Depo and majority of the AMCs will be
live in the AA platform.
Disclaimer:
These are my personal views only. The bottom
line is Safe ePayments. Nothing More – Nothing Less.
Comments
Post a Comment