GOVERNMENT OF PAKISTAN
SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN -.-.-.- Islamabad, the 11th September, 2020

NOTIFICATION

S.R.O. 884 (I)/2020.- In exercise of powers conferred by section 10 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) and in partial modification of earlier notifications No. S.R.O528(I)/2018 dated April 26, 2018, S.R.O 123(I)/2017 dated February 27, 2017 and S.R.O 425(I)/2017 dated June 6, 2017, the Securities and Exchange Commission of Pakistan (the Commission), subject to such conditions and limitations as it may from time to time impose, hereby delegates the following powers and functions of the Commission to its Commissioner and Executive Director, Specialized Companies Division , namely:-

Commissioner (Specialized Companies Division)

S. No.	Relevant Section of the Securities Act 2015 (Act No III of 2015)	Nature of power/function applicable on Securities Advisor (other than Securities Broker)
1	69(1)	To grant the license or refuse the application
2	70(1)	To grant a license for subject to such conditions or restrictions as it considers necessary
3	70(2)	To amend or cancel any of the conditions or attach new conditions.
4	71(1)(3)(4)	To issue directions to regulated person, extend the period as is considered necessary and rescind or vary the prohibition or requirement either of its own motion or on the application of the regulated person
5	74(j)	To notify such longer period as the Commission may require to keep proper records and maintain such records.
6	81(4)	To suspend the license or permit the regulated person to carry on business on the conditions, where the Commission becomes aware of an inability by a regulated person to comply with financial resources regulations.
7	81(5)	To extend the suspension for such further periods not exceeding three months at any time, at the expiry of which the Commission shall either notify in writing the regulated person that the suspension has expired or proceed to cancel the license , as it deems appropriate.
8	144	To impose restriction on a licensed person from dealing with property in a specified manner or require it to deal with such property in a specified manner.
9	147(4)	To give public notice of any prohibition or requirement imposed under this part and of any rescission or variation thereof.
10	148(1)	To present a petition for winding up of a licensed person
11	148(2)	To approve petition for winding filed by a licensed person.
12	152(3)	To inform the licensed person that license suspended due to failure to pay annual fee is no longer suspended subject to sub-section (4) of section 152.
13	152(4)	To extend period for payment of prescribed fee to be paid by a licensed person suspended under sub-section (3) of section 152.
14	152(5)	To cancel or suspend license on the request of licensed person.
15	152(6)(a)	To approve time period where licensed person has for more than thirty days ceased to carry on the business for which he is licensed.
16	152(7)	To cause notice regarding suspension or cancellation of license of licensed person for dissemination.
17	153(2)(a)	To require the regulated person (where license is cancelled or suspended) to transfer to or to the order of, his customer such records relating to customer property or to the affairs of the customer held at any time for the customer, in the manner specified in the notice.
18	153(2)(b)	Permit the licensed person to --- (i) In the case of a cancellation, carry on business operations for the purpose of closing down the business connected with the cancellation; or (ii) In the case of a suspension, carry on only essential business operations for the protection of interests of customers during the period of suspension
19	172	To issue codes and guidelines, etc.

S. No.	Relevant Part and Section of the Futures Act 2016 (Act No XIV of 2016)	Nature of power/function applicable on Futures Advisors (other than Future Brokers)
1	52	To grant license or refuse application
2	53	To impose such conditions or restrictions as are considered necessary at the time of granting license.
3	54	To issue directions to a regulated person(s)
4	65(4)	To suspend the license or permit a regulated person to carry on business on the conditions, if any imposed, in case of inability by a regulated person to comply with financial resources regulations.
5	65(5)	To extend the suspension periods not exceeding three months and at the expiry of said period notify in writing to the regulated
		person that the suspension has expired or proceed to cancel the license.
8	87(1)	To prohibit a licensed person and/or its customer(s) from doing any one or more of the actions/transactions mentioned in the section.
9	88	To restrict the licensed person from dealing with property.
10	89(1)	To require a licensed person to maintain property in Pakistan of such value as appears to the Commission to be desirable with a view to ensuring that the licensed person will be able to meet his liabilities in respect of his regulated activity.
11	89(2)	To direct that for the purposes of any requirement under section 89 property of any specified class or description shall or shall not be taken into account.
12	118	To issue codes guidelines.

S. No.	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	4 (2)(d)	Approval for change in sponsor.
2.	5(4)	Require the applicant to appear for representation.
3.	6 (proviso)	Issue clarification in respect of treatment of any item of assets and/or liabilities for the purpose of calculating the net worth of a securities/futures adviser.
4.	7(2)	Grant license to the applicant after conducting such inquiries and obtaining such further information as deemed appropriate.
5.	9(1)	Give a reasonable opportunity of being heard to the applicant, where license is not to be granted.
6.	9(3)	Extend time for intimation and settlement of all dues by the applicant whose application for renewal of licence is refused.
7.	9(4)	Publish decision of refusal to grant licence.
8.	10(2)	Cancel the licence upon receipt of application.
9.	10(3)	Cancel the licence under the circumstances given in this regulation.
10.	11(2)	Specify the time-period within which the securities adviser or futures adviser shall provide a copy of any advertisement to the Commission.
11.	21	Issue Direction for preparation of financial statements in conformity with the accounting standards.
12.	24(1)	Require a securities/futures adviser to submit to the Commission such periodic returns as it may direct.
13.	24(2)	Require securities/future adviser, either generally or in a particular case or class of cases, to submit to the Commission such exceptional returns as it may direct.
14.	Annexure A: clause (b) (1) (c)	Extend time for obtaining relevant mandatory certification, in case of CEO of securities advisor.
15.	Annexure A: clause (b) (2) (c)	Extend time for obtaining relevant mandatory certification, in case of CEO of future advisor.
16.	Annexure A: clause (b) (3) (c)	Extend time for obtaining relevant mandatory certification, in case of CEO of distributor of CIS and/or VPF units.
17.	Annexure A Clause (b) (3) (c) 2nd proviso	Specify the nature of certification to be obtained by employees of the securities and future advisors.
18.	Annexure A: Note	Decide in case of any ambiguity in determination of fitness and proprietary of person in terms of the Fit and Proper Criteria.
19.	Clause 4.8 of Annexure B of the Regulations	Require applicant to submit additional information and document along-with application for license as securities/future adviser.

Executive Director (Specialized Companies Division)

S. No.	Relevant Part and Section of the Securities Act 2015 (act No III of 2015)	Nature of power/function applicable on Securities Advisors (other than Securities Broker)
1	68(2)	To require an applicant to provide such further information as the Commission consider necessary.
2	69(3)	To renew license for period of one year.
3	72	To maintain register of regulated persons.
4	137 (1)	Power to call for information as may be required during the course of inquiry, inspection or investigation and for the purpose thereof.
5	137(2)	To require any person to appear before the Commission, Commissioner or authorized officer or produce record and documents.
6	137(4)	To call information for the purpose of proceeding.
7	138(2)	To authorize any person to carry out inspection.

S. No.	Relevant Part and Section of the Futures Act 2016 (Act No XIV of 2016)	Nature of power/function applicable on Future Advisors (other than Future Brokers)
1	52(3)	To renew license for period of one year.
2	55	To maintain register of regulated persons.
3	63(3)	To appoint a person for inspection of accounting and other records required to be maintained by a regulated person under this section.
4	66(1)	To require the regulated person to satisfy the Commission about its compliance with all the requirements of the financial resources regulations.
5	66(2)	To exercise any of the powers of an auditor appointed under section 70 for the purpose of ascertaining whether a regulated person complies with all of the requirements of the financial resources regulations.
6	70	To appoint auditor for special audit at the expense of the regulated person, to examine, audit and report, either generally or in relation to any matter, on the books, accounts and records of the regulate person and so on money, securities or other property held on account of any other person by the regulated person or by a nominee appointed by the regulated person.
7	81(1)	Power to call information as may be required during the course of inquiry, inspection or investigation and for the purpose thereof.
8	81(2)	To require any person to appear before the Commission, Commissioner or authorized officer or produce record and document.
9	82(2)	To authorize any person to carry out inspection.

S.No .	Relevant regulation of the Securities and Futures Advisers (Licensing and Operations) Regulations, 2017	Nature of power/function
1.	5(3)	Require applicant to furnish further information or clarification as deems appropriate, while considering application for license.
2.	5(4)	Require the applicant to appear for representation.
3.	7(2)	Seek additional information from other government agencies and regulatory bodies
4.	8	Renew the license of securities/futures adviser for one year
5.	18(1)(t)	Require the securities/futures adviser to submit any document, report or information as and when required
6.	Clause 12 of Annexure C	Require the securities/futures adviser to provide information and documents along-with application for renewal of license.

In case the post of the Executive Director (Specialized Companies Division) is vacant or he/she is unable to perform his/her functions or he/she is unavailable to exercise the powers and functions delegated to him/her through this notification shall stand delegated to the Commissioner who shall have the authority to exercise all powers so delegated.

This Notification shall not affect anything done, order made, notification issued, show cause issued, circular made, proceedings commenced, penalties imposed and/or collected, sanction granted, approvals made, fee directed or collected, directions given, investigation, inspection or inquiry conducted or any other action taken or done under or pursuance above referred notifications partially superseded by this Notification shall be valid and under lawful authority.

Any pending proceedings under the partially superseded Notifications shall stand transfer to the delegated authority provided in this Notification forthwith who shall proceed with the matter as it stands prior to the coming into the effect of this Notification.

[File No.SY/SECP/8/13]