Under which act are investment intermediaries regulated?

• A. MiFID II Regulations.
• B. Investment Intermediaries Act, 1995.
• C. EU Regulations on Insurance Distribution.
• D. Central Bank Act.

Answer: (B)

The concept being tested is who regulates investment intermediaries through the statutory framework that sets licensing, conduct, and supervision. The Investment Intermediaries Act, 1995 is the specific national law designed to govern entities that act as intermediaries—such as brokers, dealers, and advisers—by establishing who may operate, the qualifications required, and the standards of behavior, disclosure, record-keeping, and penalties. This provides a dedicated legal framework to protect investors and maintain market integrity within that jurisdiction.

The other options relate to different regulatory domains. MiFID II is an EU-wide regulatory framework, not a single national act, and its principles are implemented through national laws rather than a standalone act titled for investment intermediaries. Regulations on insurance distribution focus on the sale and distribution of insurance products, not general investment intermediation. The Central Bank Act governs the operations and oversight of the central bank and often the banking sector, rather than the licensing and conduct of investment intermediaries.