SECP Introduces Draft Regulations for Securities Managers

The Securities and Exchange Commission of Pakistan (SECP) has unveiled the draft of the Securities Managers (Licensing and Operations) Regulations, 2024. This move comes as part of the SECP's efforts to enhance oversight and regulation within the securities industry. The draft regulations are designed to enable qualified securities brokers to provide portfolio management services after obtaining a 'securities manager' license from the commission.

Under the proposed regulations, securities managers must meet specific criteria related to factors such as net worth, fiduciary rating, research capabilities, and other relevant aspects. Additionally, they are required to safeguard customer funds and securities by entrusting them to an independent custodian, as mandated by the regulatory framework.

The regulations cover various essential areas, including the licensing procedure, expected conduct of securities managers, creation of Investment Policy Statements for clients, management of conflicts of interest, and the handling and investment of customer funds and securities portfolios.

The release of the draft Securities Managers Regulations by the SECP marks a significant step towards strengthening the regulatory environment for securities managers in Pakistan. These regulations aim to promote transparency, accountability, and investor protection within the securities industry, ultimately contributing to a more robust and secure investment landscape for market participants and the public.