A regular round-up of compliance news, such as fines, permissions, new technology solutions to make tracking risks easier, and other developments.

The Securities and Exchange Board of India is exploring whether to bring in direct plans for alternative investment funds and portfolio management schemes, benefiting institutions such as family offices, the Business Times (of India) reported, citing unnamed sources.

This would help investors save costs and benefit family offices and independent advisors who rely predominantly on a fee-based model. Direct plans exclude the commission or fee paid to distributors, resulting in lower expenses and schemes with higher net asset values. At present, only mutual funds offer such plans, the report said.

“The regulator is consulting relevant stakeholders as the move can have far-reaching ramifications on the industry,” a senior official of a large multi-family office was quoted as saying.

“At present, distributors that can’t make money from MFs are turning to PMS and AIFs. Tomorrow, if all these categories are put on the same footing, it will give the much-needed impetus to advisors to go and charge a fee from their clients," the official said.