SECP notifies new regulations
The Securities and Exchange Commission of Pakistan (SECP) has notified the Securities Managers (Licensing and Operations) Regulations 2024, aimed at facilitating investment advisory services in the securities market. The new regulatory framework allows eligible securities brokers to offer portfolio management services upon obtaining a securities manager licence from the SECP. Prior to these regulations, securities brokers were prohibited from providing investment advisory services. To obtain a securities manager licence, brokers must meet specific eligibility criteria, including maintaining a minimum net worth of Rs30 million and a Broker Fiduciary Rating (BFR) of 2 or higher. Additionally, applicants must demonstrate sufficient research capabilities to perform the functions of a securities manager.