Licensing and Operations: SECP issues updated Securities, Futures Advisers Regulations

ISLAMABAD: A person applying for licence of securities adviser or futures adviser shall maintain a minimum net worth of Rs1 million at all times in case of a company and Rs500,000 in case of an individual.

The Securities and Exchange Commission of Pakistan (SECP) on Thursday issued updated Securities and Futures Advisers (Licensing and Operations) Regulations, 2017, incorporating all new amendments.

Under the financial resources requirement, for the purpose of these regulations, the net worth of a company shall be calculated as total assets less total liabilities, less surplus created on revaluation of fixed assets. Provided that the commission may issue clarification in respect of treatment of any item of assets and/or liabilities for the purpose of calculating the net worth.

As per new licensing conditions for securities adviser and futures adviser, a person may apply to the Commission for securities adviser and/or future adviser license under these regulations, if such a person is a company registered under the Companies Act for the purpose of providing advisory including distribution of CIS and/or VPF units of multiple AMCs by entering into contracts with such AMCs; or a banking company eligible for obtaining securities adviser license for distribution of units of CIS and/or VPS; or such other company as may be notified by the Commission or an individual having relevant mandatory certifications from the Institute of Financial Markets as specified by the Commission and meeting fit and proper criteria given at Annexure A, the SECP added.

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