SECP Proposes New Regulations for Securities Managers, Seeks Public Input

Islamabad, The Securities and Exchange Commission of Pakistan (SECP) has released the draft Securities Managers (Licensing and Operations) Regulations, 2024 for public consultation. This initiative aims to gather input from market participants and the public on a regulatory framework that would allow securities brokers to expand their services to include portfolio management.

According to Securities and Exchange Commission of Pakistan, the proposed regulations outline licensing requirements that securities brokers must meet to qualify as ‘securities managers.’ These requirements include maintaining a certain net worth, achieving a fiduciary rating, and demonstrating research capacity.

The regulations also mandate that securities managers keep customer funds and securities with an independent custodian to enhance transparency and safety. Additionally, the document details procedures for licensing, conduct requirements for securities managers, the preparation of Investment Policy Statements for customers, and strategies for managing conflicts of interest and investing customer funds and portfolios. Feedback on the draft regulations can be submitted via email to securities.managers@secp.gov.pk, and the full consultation paper and draft regulations are accessible on the SECP’s official website.