ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Monday notified the new brokers’ regime.

The SECP issued SROs 75, 76 and 77, making amendments in Futures Market Act, 2016, Public Offering Regulations 2017 and the Securities Brokers (Licensing and Operations) Regulations, 2016.

The stock brokers will now be categorised according to their net worth and governance requirements into three categories — Trading & Clearing broker (T&C), Trading & Self-Clearing (TSC) and Trading Only (TO).

T&C and TSC categories shall be permitted to retain custody of client assets whereas TO broker would only have custody of its proprietary book, directors and sponsors and their close relatives. TO will therefore operate with significantly reduced compliance requirements.

“The amendment were required to implement AML/FATF requirements which require intermediaries to have comprehensive protocols to curtail money laundering and terrorism financing risks,” the spokesman SECP said adding that the new broker regime is expected to bridge the regulatory compliance gap while increasing commercial viability of brokerage industry.

Meanwhile, an office bearer of the Pakistan Stockbrokers Association (PSA) told Dawn that the association was planning to approach the court of law against the decision of the SECP.

Published in Dawn, February 4th, 2020