Authorised Partner vs Remisier: Know the key differences

While both Authorised Partners and Remisier play important roles in the brokerage industry, there are certain differences in terms of their roles, responsibilities and earnings.

The world of stock trading includes a wide range of financial instruments, each with distinct features and functions. As a result, in the stockbroking industry, there are various agencies and intermediaries to help investors understand these financial instruments and to carry out seamless transactions. Two such roles are those of Authorised Partners and Remisiers.

These two roles are often used interchangeably as both Remisiers and Authorised Partners serve as intermediaries between investors and stockbrokers. Both Authorised Partners and Remisiers are paid a commission on sales. However, they both follow very different business models, and there are certain technical differences.

It is therefore essential to understand the differences between a Remisier and an Authorised Partner if you are considering a career in this field.

What is an Authorised Partner?

An Authorised Partner is a person who performs tasks similar to those of a broker but serves as an intermediary between the brokerage and the client.

The responsibilities of an Authorised Partner include assisting clients with various tasks, such as handling paperwork and financial transactions. Authorised Partners also bring new clients to the brokerage firm. They aid customers in conducting securities transactions and making right investment decisions.

In return for their services, Authorised Partners earn a commission based on the transactions they facilitate for clients.

What is a Remisier?

Remisiers serve as intermediaries between investors and Authorised Partners. Instead of finalising deals, they provide clients with supportive guidance. A Remisier brings in business by introducing clients to the broker and earns a commission for the services. The role of a Remisier is more akin to an introducer than an official brokerage representative.

A Remisier does not issue contract and commission notes in their clients’ names unlike an Authorised Partner. A Remisier also does not provide financial guidance on investing, taxation, savings, portfolio diversification, or other risk management techniques.

Anyone looking to increase their income might consider becoming a Remisier.

Similar to how individuals become social media influencers to earn money or products from the brands they promote, many people are becoming Remisiers for an additional source of income.

Remisier vs Authorised Partner: Key differences

Definition

• Remisers work on a commission basis, receiving payment for each deal.
• Authorised Partners function like an extended arm of brokerages.

Job role

• Authorised Partners work for the brokerages by educating clients, participating in trading and conducting market research in addition to recruiting clients. This role, however, demands significant time and dedication and is usually full-time.
• Remisiers, on the other hand, have a limited job focused on client solicitation, allowing them to work part-time and pursue other ventures concurrently.

Initial investment

• Authorised Partners may require an initial investment that varies from ₹50,000 to ₹3 lakh.
• Remisiers, however, do not need any initial investment.

Office space and infrastructure

• Brokerage firms may usually stipulate that Authorised Partners have dedicated and specialised office space and business infrastructure.
• Remisiers do not need any such infrastructure.

Earnings

• Authorised Partners generally earn more than Remisiers due to their broader range of responsibilities. They can even earn up to 60% as commission as they need to handle various client-related duties.
• Remisiers earn much less, with their commissions ranging from 10% to 30%.

Licencing requirements

• Earlier, the Securities and Exchange Board of India (SEBI) required Authorised Partners to register. Although SEBI registration is no longer required, brokerage companies may still have special onboarding requirements.
• With Remisiers, before they can begin soliciting clients for brokerage firms, they are required to register with a stock exchange.

Remisier vs Authorised Partner: Which is better?

The roles of Remisier and Authorised Partner each have benefits and drawbacks. Authorised Partners get access to cutting-edge equipment, technology and market research reports because they are part of a larger brokerage house and work under its auspices. They receive training to enhance revenue generation and gain from the brand’s marketing initiatives, which facilitates customer acquisition.

The work of an Authorised Partner, however, necessitates a high degree of engagement, diligence and commitment. Authorised Partners are in charge of closing deals, encouraging customers to make larger investments, and assisting them in maximising their earnings. They operate as fully fledged business owners, taking care of customer acquisition, building connections, managing and offering after sales services.

On the other hand, the role of a Remisier is less demanding. Remisiers can work part-time or in conjunction with other ventures, with their primary focus being on attracting new clientele.

In conclusion, personal preferences and professional objectives play a role in choosing between a Remisier and an Authorised Partner. Becoming an Authorised Partner could be a better option if you’d rather work for a larger company in a role with lots of resources and support and are prepared to put in a lot of time and effort. However, working as a Remisier can be more appropriate if you’re looking for a more flexible job role.