SECP Allows Licensed Individuals to Act as Securities Advisors

The Securities and Exchange Commission of Pakistan (SECP) has highlighted key amendments in the Securities and Futures Advisors (Licensing & Operations) Regulations 2017 in a bid to broaden the investor base and enhance the capital market outreach.

Through these amendments, the SECP has broadened the advisory regulatory regime and made it more inclusive by allowing licensed individuals to act as securities and futures advisors. They will also be permitted to work as the distributors of mutual funds units for multiple Asset Management Companies.

This will enable the expansion of the distribution outreach of the capital market products, create employment opportunities for the qualified youth, and increase financial inclusion.

Globally, independent investment advisors operate both as individuals and within corporate structures and play a major role in assisting and educating investors.

Licensing qualified individuals as investment advisors will not only help build investors’ confidence but will also provide a platform to develop much-needed quality human capital for the capital markets of Pakistan.

Moreover, to create flexibility and reduce the regulatory burden on companies, the experience requirement of either the CEO or the head of the advisory services has been reduced from five to three years.

This will encourage the participation of young and qualified professionals in the capital market, the fulfillment of befitting and proper criteria, and to act as securities and futures advisors.


Source: Propakistani

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