Broadening investor base: SECP suggests changes to regulations
PHOTO: FILE
The Securities and Exchange Commission of Pakistan (SECP) has proposed amendments to the Securities and Futures Advisers (Licensing and Operations) Regulations 2017 to propel initiatives of the commission for broadening the investor base and enhancing outreach of the capital market. Through these amendments, the SECP has proposed that individuals can act as securities and futures advisers and act as distributors of units of mutual funds of multiple asset management companies (AMCs). This will lead to the creation of new distribution channels and increase financial inclusion in the country. Moreover, in order to reduce the regulatory burden on companies, the experience condition for the CEO or head of its advisory services has been reduced to three years from the existing requirement of five years. This will encourage participation of young and qualified professionals in the capital market, meeting the fit and proper criteria, for acting as securities and futures advisers.
Published in The Express Tribune, August 5th, 2020.
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