ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has restricted the certifications of Pakistan Markets and Regulation Program (PMR) and Fundamentals of Capital Market (FCM) to the Chief Executive Officers (CEOs), Managing Directors (MDs), Chief Compliance Officers and head of sales at brokerage houses.
In this regard, the SECP has issued circular 27 of 2021 for all professionals employed by the brokerage houses engaged in activities related to securities including trading/ sale and marketing, etc., to obtain required certifications.
"This is in continuation to Circular No. 9 of 2015, Circular No. 47 of 2015 and Circular No. 10 of 2018 dated April 08, 2015, December 30, 2015 and July 03, 2018 respectively. The SECP in exercise of its powers conferred under section 40(B) of the Securities and Exchange of Pakistan Act, 1997, has amended the said referred circulars,"he SECP's new circular said.
According to the circular, the Pakistan Markets and Regulation Program (PMR) and Fundamentals of Capital Market (FCM) certifications shall be mandatory only for the Chief Executive Officers (CEOs) and Managing Director, Chief Compliance Officer and Head of sales, by whatever name called, of securities brokers.
The Stock Broker Certification (SBC) shall be mandatory only for the sales staff i.e., personnel performing the sales functions of the securities brokers. They will not include personnel employed for administrative and operations, and other staff members including the system/ trading terminal operators. The existing above mentioned personnel shall obtain the PMR, FCM and SBC Certification, whichever relevant, within 18 months of the date of issuance of this circular.
All new professionals, joining brokerage houses after the date of issuance of this circular, shall obtain the PMR, FCM and SBC certification, whichever relevant, within 12 months of their joining. All other requirements of the above-referred circulars shall remain the same, SECP maintained. This circular shall come into force with immediate effect and all securities brokers are required to ensure its meticulous compliance in letter and spirit, SECP added.
Copyright Business Recorder, 2021