SECP launches consultation on regulations for securities managers

The Securities and Exchange Commission of Pakistan (SECP) has released the draft Securities Managers (Licensing and Operations) Rules, 2024 along with a consultation paper on the proposed regulations to seek feedback from the market and general public.

The proposed regulatory framework allows authorized securities dealers to provide portfolio management services after obtaining the required license from the Commission to act as a “securities manager,” a press release issued on Friday said.

Licensing requirements for securities managers include net worth, fiduciary rating, research capacity and other related areas in accordance with the regulations.

In addition, the securities manager would be required to hold client funds and securities with an independent custodian. Other key areas covered by the regulations include licensing procedures, securities manager conduct, preparation of Investment Policy Statements for clients, management of conflicts of interest, management and investment of client money and securities portfolios.