ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has directed all existing brokers licensed as trading and self-clearing to obtain a broker fiduciary rating within such time as may be specified by the Commission.

The SECP has notified an SRO (I)/2022 to issue draft amendments to the Securities Brokers (Licensing and Operations) Regulations, 2016, here on Monday.

Under the amended regulations, the SECP has revised requirements for licence under the Trading and Self-Clearing and Trading and Clearing categories. The licence for Trading and Self-Clearing or Trading and Clearing categories shall only be granted to an applicant which has also been admitted as a clearing member by the clearing house and a participant by the central depository.

The revised regulations said that all existing brokers licensed as Trading and Self-Clearing shall obtain a Broker Fiduciary Rating within such time as may be specified by the Commission.

The applicants opting for the Trading and Self-Clearing category shall comply with the following minimum requirements: It must maintain a minimum Broker Fiduciary Rating of BFR 3, as may be specified by the Commission, from a credit rating company licensed by the Commission and disclose such rating at all times on its website and all advertisements; 47[Provided that in case where the Trading and Self Clearing Broker has not obtained the Broker Fiduciary Rating, the reduced limits of assets under custody shall be applicable.

Copyright Business Recorder, 2022