What Client Rights Are Covered in an Investment Adviser Agreement?
- August 18, 2026
- Posted by: Neeraj Pandey
- Category: advisory
Investment adviser clients have the right to receive services as described in the agreement, be charged only in the agreed fee mode, receive their risk profile in writing, exit the agreement with t…
Quick Answer
Investment adviser client rights are the specific protections that SEBI’s IA framework confers on individuals who enter into a client advisory relationship with a registered Investment Adviser. These rights are both contractual (defined in the client agreement and MITC) and regulatory (defined in SEBI’s IA Master Circular and associated regulations). Understanding investment adviser client rights helps investors recognise when those rights are not being respected and take appropriate action.
Investment adviser client rights are process and transparency protections, not outcome guarantees. They do not give clients a right to profitable advice or to returns above a threshold. They give clients the right to a properly documented, transparently priced and fairly terminated advisory relationship.
This guide explains the core investment adviser client rights categories, what each covers and how investors can assert these rights.
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Service Rights: What You Were Promised
Investment adviser client rights include the right to receive the services described in the client agreement and the MITC. If the agreement specifies regular research recommendations, portfolio reviews and advisory reports, the client has a right to those deliverables within the terms specified. The agreement should be specific enough about service scope that clients can identify when promised services are not being delivered. A vague agreement that describes services in generic terms provides weaker service rights than a specific scope description.
Fee Rights: Mode, Amount and Refund
Investment adviser client rights cover the fee dimension in detail. Clients have the right to be charged only in the mode specified in the client agreement (fixed fee or AUA). Fees cannot be changed without documented client consent. For individual and HUF clients, advance fee collection is limited to one year’s equivalent. Clients are entitled to a proportionate refund of unexpired advance fees on early termination, subject to any breakage fee specified in the agreement. These fee rights are backed by SEBI’s fee regulations for IAs.
| Client Right Category | What It Covers |
|---|---|
| Service rights | Delivery of services as agreed in the client agreement |
| Fee rights | Agreed fee mode, advance fee limits, refund on exit |
| Information rights | Written risk profile, MITC, SEBI disclosures |
| Termination rights | Right to exit with agreed notice period |
| Grievance rights | Internal complaint process, SEBI SCORES escalation |
Information Rights
Investment adviser client rights include information transparency obligations. Clients have the right to receive their completed risk profile in writing, access the MITC before signing the client agreement, review the IA’s investor charter covering rights and grievance process and access the IA’s regulatory disclosures including SEBI registration number, principal officer details and conflict of interest disclosures. These information rights exist independently of whether the client asks for them — the IA is required to provide them proactively.
Termination and Grievance Rights
Investment adviser client rights include the right to terminate the advisory relationship with the agreed notice period and the right to receive a refund of unexpired advance fees on early termination. On the grievance dimension, clients have the right to file complaints through the IA’s internal grievance process and to escalate to SEBI SCORES if the internal process fails. Investors whose investment adviser client rights are violated should document the specific right and the specific instance of violation before filing a complaint.
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Conclusion
Investment adviser client rights cover five categories: service rights (delivery of promised services), fee rights (agreed mode, advance limits, refund on exit), information rights (written risk profile, MITC, disclosures), termination rights (exit with agreed notice) and grievance rights (internal complaint and SEBI SCORES escalation). These are process and transparency protections, not outcome guarantees. Clients whose rights are violated should document the specific violation before filing a complaint.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with official sources before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What rights do investment adviser clients have?
Ans. Investment adviser client rights cover service rights (receiving the agreed advisory services), fee rights (being charged only in the agreed mode with advance fee limits and refund entitlement on exit), information rights (written risk profile, MITC, disclosures), termination rights (exit with agreed notice) and grievance rights (internal complaint and SEBI SCORES escalation).
Can an investment adviser change fees without client consent?
Ans. No. Investment adviser client rights include the right to be charged only in the mode and amount specified in the client agreement. Fee changes require documented client consent before taking effect. Unilateral fee changes by the IA without client consent are a breach of both the client agreement and the IA conduct framework.
What is the client’s right if an IA does not deliver promised services?
Ans. Investment adviser client rights is relevant here. If a registered IA fails to deliver services specified in the client agreement, the client has a service right breach that can be raised through the internal grievance process and escalated to SEBI SCORES if unresolved within 30 days. Documented evidence of what was promised (client agreement and MITC) and what was not delivered is essential for an effective complaint.
What information is an investment adviser required to provide to clients?
Ans. Investment adviser client rights is relevant here. An IA must proactively provide: the completed risk profile in writing, the MITC before the client agreement is signed, the investor charter covering rights and grievance process, regulatory disclosures including the SEBI registration number and conflict of interest disclosures. These information rights exist regardless of whether the client specifically requests them.
Can a client terminate an investment advisory service at any time?
Ans. Investment adviser client rights include the right to terminate the advisory relationship with the agreed notice period. The notice period should be specified in the client agreement. On termination, the client is entitled to a proportionate refund of unexpired advance fees, subject to any breakage fee specified in the agreement.
What if the investment adviser ignores a client’s grievance?
Ans. If the IA’s internal grievance process fails to resolve a complaint within 30 days or the resolution offered is unsatisfactory, the client can escalate to SEBI SCORES at scores.sebi.gov.in. Include the internal complaint evidence, the client agreement terms and the specific right that was violated in the SCORES filing.
