You may be compliant, but can you prove it when it matters?
If you are an MFD or a financial advisor, you already know all about SEBI and AMFI compliance. You conduct risk profiling, perform timely portfolio reviews, follow standard rules, maintain records, track client queries, and more.
Brownie points for that. . . but let’s be honest, that’s really not the point.
The real question is: do you see all of it on a single screen?
Say you’re working with an HNI client. You have a setup to track their portfolio, investments, and maybe even their review schedule. But when it’s time for an audit or a compliance review, what happens?
What if compliance demands their complaint log, service history, interaction records, KYC documents, and risk profile — all together?
Do you have that?
Or do you find yourself digging through Excel sheets, WhatsApp chats, scattered folders, or your team’s memory?
If that’s how you’ve been working all along… here’s your wake-up call.
The Compliance Reality Check
In just 2024–25, SEBI has processed 703 applications for settlement and collected penalties of ₹799 crore. And it’s not just the big names; plenty of smaller advisers have also been caught out by sloppy client communications and incomplete records.
Even worse, approximately 95% of SEBI orders against investment advisers involved offering speculative trading calls under the guise of advice, while only 5% represented genuine, holistic investing advice. This reinforces one thing: compliance is not a one-time task; it’s a daily discipline.
The misconception? That compliance only matters when regulators are watching. The truth? Every missed disclosure, mis-recorded client conversation, or overlooked renewal can cost you trust, business, and recurring commissions.
But compliance doesn’t need to feel like a maze. With the right CRM, it becomes effortless, i.e., built into how you serve clients every day.
Here are 4 common compliance mistakes, and how your CRM can quietly fix them behind the scenes.
#1: Incomplete Risk Profiling
You may think you’re compliant by simply noting client details, but SEBI disagrees. Every recommendation must align with a documented risk profile; otherwise, it’s mis-selling. And if it’s not recorded, it doesn’t exist.
📜AMFI FAQ #12 [Customer Risk Profiling and Assessment of Suitability] requires MFDs to perform client risk profiling.
📜SEBI Clause 15.5.1.4(a) mandates that recommendations must be appropriate to the investor’s established risk appetite, with no exceptions.
How CRM helps:
- Auto-triggers profiling questionnaire during onboarding
- Tag the investor into categories (Conservative, Moderate, Aggressive)
- Flag if high-risk schemes are chosen for low-risk clients
- Stores profiling data and consent with audit-proof timestamps.
“If it isn't documented, it isn’t compliant, and a CRM ensures that it always is.”
#2: Unsecured or Scattered Document Storage
KYC in a drive folder. PAN in WhatsApp. IPV notes in an email. Client conversations in random files. Sound familiar?
That’s not just messy and inefficient, but it’s a compliance red flag.
📜AMFI Code of Conduct Clause 3(d) requires secure, traceable storage of all client records — KYC, IPV, communications, appropriateness notes, and other relevant documents.
How CRM helps:
- Centralizes all documents under each client’s profile
- Guarantees time-stamped and access-controlled storage.
- Enables immediate retrieval for audits.
"If your compliance data lives in inboxes or drives, it’s not secure. A CRM safeguards your data to ensure compliance.”
#3: No Communication Trail or Complaint Record
A client complains over a call, you promise to resolve it, and later text them a solution. But six months later, when the compliance demands for proof of complaint handling, you’ve got nothing. No record of what was discussed, what was promised, or how the issue was resolved.
📜AMFI Code of Conduct Clause 4(j) requires proper complaint handling and cooperation in grievance redressal.
📜AMFI FAQ #13 highlights maintaining records of complaints in a retrievable form.
How CRM helps:
- Auto-logs every client interaction (email, call notes, WhatsApp, SMS)
- Keeps structured records of portfolio reviews and service notes
- Helps you create tasks for client queries and tracks resolution periods
- Sets reminders for follow-ups and closures
- Creates a clear record for reporting of client queries
"Without clear records, there is no compliance. CRM gives you both structure and accountability.”
#4: Content Compliance Violations
That WhatsApp forward, that return chart without a disclaimer, or that social post with an AMC logo might look harmless, but it’s all non-compliant.
📜AMFI Code of Conduct Clause 4(k) prohibits unapproved content/branding.
📜Clause 5(g) restricts use of “advisor” unless SEBI-registered.
📜SEBI circulars ban misleading promotions and mandate disclaimers.
How CRM helps:
- CRM lets you create & store approved templates (WhatsApp, email, SMS).
- Integrates with the WhatsApp Business API (WABA) for secure messaging
- Logs every message, including content, time, channel, and recipient
"Your content proves your credibility. CRM ensures it’s always compliant, consistent, and audit-ready.”
Final Thoughts
Most compliance mistakes happen not because of bad intentions, but because of busy days, unclear rules, or scattered systems.
That’s why compliance isn’t about doing more; it’s about doing it smarter.
The right CRM acts as a silent compliance officer, protecting your practice from errors, lapses, and accidental rule violations.
Because at the end of the day, your reputation is not only what you build, it’s also what your systems uphold.
That’s why Sanchay CRM doesn’t just make your business efficient; it makes it bulletproof.
It’s not another tech tool. It’s your 24/7 compliance guard.
