Question: Arjun received investment advice from a SEBI-registered investment adviser. Along with the advice the adviser also offered to help him invest in the recommended mutual fund through its implementation service, and Arjun was unsure whether he had to use that service. As per the SEBI (Investment Advisers) Regulations, 2013, what should the adviser communicate to Arjun before the investment is executed?
Answer: Before the investment is executed, the adviser should clearly inform Arjun that using the implementation service is entirely optional. Arjun is free to implement the investment advice through any platform or service provider of his choice and he should not be placed under any obligation to use the implementation service offered by the adviser

Supporting evidence:
title: sebi.gov.in/sebi-investment-advisers-regulations-2013-last-amended-on-december-08-2016-_34619.html
quote: The client shall not be under any obligation to avail the distribution or execution services offered by the investment adviser
context: (3) An investment adviser shall conduct yearly audit in respect of compliance with these regulations from a member of Institute of Chartered Accountants of India orInstitute of Company Secretaries of India.

Redressal of client grievances.

21. (1) An investment adviser shall redress client grievances promptly.
- (2) An investment adviser shall have adequate procedure for expeditious grievance redressal.
(3) Client grievances pertaining to financial products in which investments have been made based on investment advice, shall fall within the purview of the regulator of such financial product.
(4) Any dispute between the investment adviser and his client may be resolved through arbitration or through Ombudsman authorized or appointed for the purpose by any regulatory authority, as applicable.

Segregation of execution services.

22. Investment advisers which are banks, NBFCs and body corporate providing distribution or execution services to their clients shall keep their investment advisory services segregated from such activities:
Provided that such distribution or execution services can only be offered subject to the following:
- (a) The client shall not be under any obligation to avail the distribution or execution services offered by the investment adviser.
- (b) The investment adviser shall maintain arms length relationship between its activities as investment adviser and distribution or execution services.
- (c) All fees and charges paid to distributionor execution service providers by the client shall be paid directly to the service providers and not through the investment adviser.

Board's right to inspect.

23. The Board may suo motu or upon receipt of information or complaintappoint one or more persons as inspecting authority to undertake inspection of the books of accounts, records and documents relating to investment advisers for any of the following reasons, namely: -
2. (a) to ensure that the books of account, records and documents are being maintained by the investment adviser in the manner specified in these regulations;
3. (b) to inspect into complaints received from clients or any other person, on any matter having a bearing on the activities of the investment adviser;
4. (c) to ascertain whether the provisions of the Act and these regulations are being complied with by the investment adviser;
5. (d) to inspect into the affairs of a investment adviser, in the interest of the securities market or in the interest of investors.