The Australian government convened this formal inquiry — chaired by Justice Kenneth Hayne — between 2017 and 2019 to investigate systematic misconduct in banking and financial services. [1]
Its central finding: advisors were directing clients into high-fee products not because they were suitable, but because they paid higher commissions to the advisor. This wasn't a few rogue individuals. It was the predictable output of a system built around conflicted incentives. The result was a wholesale ban on conflicted remuneration in Australian financial advice. [1]
Australia cleaned up its system. India hasn't — at least not fully.
The same structural conflict exists here: [7]
SEBI has made progress — direct plans, the RIA framework, disclosure norms. But the majority of Indian retail investors still receive advice through commission-paid distributors. [1]
"Are you a SEBI-registered RIA with a fee-only structure, or are you an MFD earning trail commissions?"
An RIA has a fiduciary duty to act in your interest. An MFD is paid by the product manufacturer. Neither is illegal — but knowing which one you're dealing with tells you whose interest the advice is structurally optimised for. [4]
Apply this → Start with Where do you stand financially? to build the foundation before evaluating any product recommendation.