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.