The Securities and Exchange Commission of Pakistan (SECP) will not grant license of futures broker to anyone whose ultimate beneficial owners have been convicted in any predicate offences provided under Anti-Money Laundering Act, 2010, Anti-Terrorist Act 1997 or any other criminal offence.
Sources said that the eligibility criteria for licensing of futures brokers have been specified in the Futures Brokers (Licensing and Operations) Regulations, 2018. These regulations shall apply to Futures Brokers dealing in futures contracts based on specified commodities and financial instruments offered by or traded on futures exchange other than a securities exchange.
A company may apply to the Commission for license as a futures broker, if its ultimate beneficial owners have not been convicted in any predicate offences provided under Anti-Money Laundering Act, 2010 (VII of 2010), Anti-Terrorist Act 1997 or any other criminal offence.
For the purposes of this regulation, the expression "ultimate beneficial owners" includes natural person or individual who ultimately own or control the entity.
A company may apply to the Commission for license as a futures broker, if its sponsors have submitted verifiable documents including wealth statements submitted with the tax authorities to demonstrate that its net worth is not less than twice the amount to be subscribed by him personally. Provided that in case of a company, its sponsors have submitted verifiable documents to demonstrate that they have financial resources not less than twice the amount of the paid-up capital requirement for futures broker. A company may apply to the Commission for license as a futures broker if the name of its sponsors, directors and chief executive officer are appearing on the list of Active Tax Payers issued by the Federal Board of Revenue.