Regulatory Alerts2017-04-24
Added · Updated
Securities and Future Advisers (Licensing & Operations) Regulations, 2017
The Securities and Exchange Commission of Pakistan establishes licensing requirements for securities and futures advisers, mandating that no person may perform these functions without a Commission license. Applicants must maintain a minimum net worth of Rs. 1 million for companies, satisfy fit and proper criteria, and hold membership in an approved self-regulatory organization. Existing advisers are required to obtain licenses within six months of the regulations' commencement, while non-banking finance companies holding investment advisory licenses are exempt subject to specific compliance conditions. The regulations further dictate conduct standards, including prohibitions on misleading advertisements, mandatory written agreements with customers, and strict conflict of interest disclosures.