IFSCA proposes disclosure rules for Financial Solicitation Professionals in GIFT IFSC; comments by 30 November
TaxByKK · Compliance News · taxbykk.com9 Nov 2026
In short
IFSCA has published a consultation paper and draft circular on guidelines for financial institutions in the International Financial Services Centre that engage individuals other than employees to solicit business for them, called Financial Solicitation Professionals. Instead of a separate regulatory regime for financial advisers, which IFSCA considered in February 2026, it proposes a disclosure-based approach: due diligence, conduct rules for the FSP, full responsibility of the institution, termination for misconduct and a public list of FSPs on its website. Comments are open till 30 November 2026.
- Authority
- International Financial Services Centres Authority
- Type
- Consultation paper with draft circular
- Date
- 9 November 2026
- Comments by
- 30 November 2026
- Send comments to
- akash.boddeda@ifsca.gov.in and nikhil.solanki@ifsca.gov.in, copy arjun.pd@ifsca.gov.in
- Draft effective
- With immediate effect from issue (draft dated December XX, 2026)
- Powers
- Sections 12 and 13 of the International Financial Services Centres Authority Act, 2019
What changed
| Item | Before | Now |
|---|---|---|
| Approach to individuals who solicit for IFSC institutions | Draft IFSC Financial Advisers Regulations, 2026 (consultation of 24 February 2026) | Disclosure-based guidelines on already regulated institutions; a separate framework for Financial Advisers is no longer proposed at this stage |
| Due diligence | Not specified | Institution to do appropriate due diligence before engaging an FSP |
| Public list | Not specified | Institution to publish and promptly update a list of all FSPs on its website or its parent entity's dedicated page |
| Responsibility | Not specified | Institution remains responsible for all acts and omissions of the FSP, and must act against an FSP that breaches the guidelines, including termination |
This is a proposal, not a rule. The draft circular is undated and may change after comments. The paper does not say whether the February 2026 draft Financial Advisers Regulations are formally withdrawn.
Who it applies to
- Banks, fund managers, insurers, broker-dealers and other financial institutions in GIFT IFSC
- Individuals acting as outside solicitors for IFSC institutions, in India or abroad
- Compliance officers, company secretaries and lawyers advising IFSC entities
What to do
- Send comments by 30 November 2026 in the format given in the paper (name, organisation, clause, comment, rationale).
- List the outside individuals you use today and check them against the proposed conduct rules.
- Plan the public FSP list on your website.
Reference
IFSCA Consultation Paper dated 9 November 2026, Guidelines for engaging Financial Solicitation Professionals (FSPs), with draft circular at Annexure A.
Read the official PDF: IFSCA consultation paperWritten by TaxByKK from the official notification. Check the official text before you act on it.
Frequently asked questions
What must an FSP not do under the draft?
Claim to be an employee or to be registered with IFSCA, make false or exaggerated statements or promise returns, or accept or hold client money, securities or assets.
Who is responsible for an FSP's conduct?
The financial institution that engaged the FSP.
When do comments close?
30 November 2026.