RIAs Criticise Govt Over Non-Registered Advisor In Official Ad Against ‘Fake’ Experts

Several registered financial advisors (RIAs) on Monday took to Twitter to express their dismay at the government’s alleged endorsement of a non-registered investment advisor in a first-page ad in an English-language newspaper on June 26. They pointed out the irony that the ad meant to expose fake experts promoting an individual who may not have the requisite qualifications.
 
Rachana Ranade, featured in the advertisement, is a chartered accountant and a popular YouTuber with her channel called ‘CA Rachana Phadke Ranade,’ which has 4.44 million subscribers. The RIAs’ criticism was due to the portrayal of a non-registered advisor as a legitimate expert qualified for advising on the stock market and investments.
 
J. Satheesh Kannan, an RIA and certified financial planner (CFP), said on Twitter, “Who gets the most eyeballs on YouTube, they are the real experts. Where all RIAs and #SEBI. We are just hiding behind advt. Code.”
 
“Hiding behind advertisement code” appeared to be a jibe alluding to the Securities and Exchange Board of India’s (Sebi) strict compliance rules and ad limitations for RIAs.
 
The ad reads: “There are real as well as fake experts on the internet. Spotting the difference between the two can be tricky. So before any self-proclaimed expert, know a little more about them.”
 
Although the advert did not explicitly mention the word ‘investment’, RIAs argue that it can potentially mislead less-informed investors to interpret it as an endorsement of the investment advisor portrayed. They further argue that government ads should have the same compliance standards that they are held to prevent misleading claims and safeguard investors.
 
Says Basavaraj Tonagatti, a SEBI-registered investment adviser, “Finding the right financial, professional, or personal mentor requires a huge testing capacity at your end before believing so. In fact, sometimes it may take decades to judge who is the right mentor for me. Blind instant belief is dangerous for you but not to that guru.”
 
Aveek Mitra, a SEBI-registered investment adviser, summed up the situation with a sarcastic remark, “Mera Bharat Mahan!!”
 
In another tweet, Ajay Rotti, a tax consultant and founder of Tax Compass, expressed his annoyance at using the logo of the Ministry of Electronics and Information Technology (MeitY) in the ad. Rotti sought clarification from Minister of State Rajeev Chandrasekhar, highlighting a potential conflict as the QR code in the ad directed viewers to a YouTube campaign. 
“Why is the MeitY logo used here? Is it a Govt advertisement? The QR code takes me to a campaign by YouTube. If it is... There is a clear conflict. The #Finfluencer in question gives hits to YouTube. It is @GoI_MeitY's I have a bigger problem,” Ajay said.