Regulatory Alerts2020-11-19
Added · Updated
Securities Brokers Licensing Regulations 2016
The Securities and Exchange Commission of Pakistan establishes licensing requirements and operational categories for securities brokers, including Trading Only, Trading and Self-Clearing, and Trading and Clearing. Applicants must meet specific eligibility criteria, such as maintaining a minimum sponsor shareholding of 51 percent, ensuring net-worth coverage of personal subscriptions, and demonstrating fit and proper status for directors and senior management. Existing licensees are required to convert to one of the new categories by July 15, 2020, and comply with corresponding financial resource requirements by September 30, 2020. The regulations also define prohibited activities, such as acting as a broker without a license, and mandate adherence to anti-money laundering and corporate governance standards.