ISLAMABAD: To broaden investor base and enhance capital market outreach, the Securities and Exchange Commission of Pakistan (SECP) has notified key amendments in the Securities and Futures Advisors (Licensing & Operations) Regulations, 2017.

Through these amendments, the SECP has made the advisory regulatory regime more inclusive and broad-based by allowing licensed individuals to act as securities and futures advisors. They will also be permitted to work as distributors of mutual funds units for multiple Asset Management Companies. This will enable expansion of distribution outreach of capital market products, create employment opportunities for qualified youth and increase financial inclusion. Globally, independent investment advisors operate both as individuals as well as within a corporate structure and play a major role in assisting and educating investors. Licensing qualified individuals as investment advisors will not only help build investors’ confidence but will also provide a platform to develop much needed quality human capital for the capital markets of Pakistan.—-PR

Copyright Business Recorder, 2021