Brokers must obtain 'management rating': SECP

The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for the securities brokers to obtain 'management rating' on annual basis from a credit rating company licensed by the Commission. According to the amended Securities Brokers (Licensing and Operations) Regulations, 2016 issued by the SECP, The securities brokers licensed under these regulations may obtain management rating on annual basis from a credit rating company licensed by the Commission and disclose such rating at all times on their websites and all advertisements.
The SECP said that the all securities brokers shall ensure compliance with the Corporate Governance Code. The listed securities brokers shall ensure compliance with this Code in addition to any Corporate Governance rules, regulations, codes or guidelines applicable on listed companies as prescribed in the regulations of the securities exchange by the Commission. In case where there is any inconsistency with the requirements of rules, regulations, codes or guidelines prescribed by the commission for listed companies the provisions of such rules, regulations, codes or guidelines shall prevail over the code. All securities brokers, except listed securities brokers, shall publish a statement of compliance with the Code in their annual reports, the SECP added.