In a bid to meet the pressing demand of the
The new regime includes multifold compliance requirements for brokers having custody of investors’ assets and the SECP board will take three to four more weeks to deliberate new regulations and their implementation.
It has been learnt that the FATF has asked
READ MORE: SECP’s new brokers regime opposed
According to a SECP official, the total 225 brokers at
There are 109 brokers, who have a net worth between
The SECP document showed that presently, top 60 brokers have more than 80 percent of customers and top 50 brokers generate more than 80 percent of the trading volumes. The lowest 170 brokers have just 18 percent of the total clientele.
Small brokers argue that they cannot dedicate sufficient resources to meet financial reporting requirements and are thus unable to develop a sound compliance system and meet FATF’s anti-money laundering and combating financing of terror (AML/CFT) standards.
The
The new regulations bar the brokers from retaining custody of those investors’ assets who are unable to dedicate sufficient resources to meet financial reporting requirements and cannot develop a sound compliance system to meet AML/CFT guidelines of the FATF.
In the new regulations, the SECP has divided the brokerage industry into three categories i.e. small-sized brokers (trading only brokers), trading and clearing broker, and trading and self-clearing brokers.
The new financial resource requirements for brokers, net worth of the trading and clearing broker (TC) licence would be
The SECP official said brokers are required to comply with AML/CFT regulations since they handle client assets.
© Pakistan Press International, source