SECP enables authorized securities brokers to provide portfolio management services – Business & Finance

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed authorized securities brokers to provide portfolio management services.

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

The proposed regulatory framework allows authorized securities brokers to provide portfolio management services after obtaining the required license to act as a ‘securities manager’ issued by the Commission.

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 is obliged to keep client funds and securities with an independent depository.

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.

Feedback can be sent to [email protected]. The draft Regulation and the consultation document are available on the SECP website at https://www.secp.gov.pk/document/draft-securities-managers-regulations-2024/wpdmdl=51671&refresh=665996bc063191717147324.