The Securities and Exchange Commission of Pakistan (SECP) has simplified the licensing regime for capital market intermediaries through amending the regulations for Underwriter, Bankers, and Securities and Futures advisors.
The new licensing regimes will provide a more conducive regulatory environment and encourage more participation of financial institutions in the capital market.
The SECP, through amending the Public Offering (Regulated Securities Activities Licensing) Regulations 2017 has removed all cumbersome licensing requirements for Banks to act as Underwriter and Bankers to an Issue. As per new regulations, banks are only required to submit a simple application for the grant of license. The application will only annex an undertaking by the bank that it is compliant with all regulatory requirements. There is no other documentary requirement for the grant and renewal of the license.
Moreover, through amendments in Securities and Futures Advisers (Licensing and Operations) Regulations 2017, the annual renewal of securities and futures advisors has been simplified for the companies and scheduled banks which are engaged in the services of advisory and distribution of mutual funds of multiple Assets Management Companies.
This easy licensing regime would contribute to reduce the regulatory burden on capital markets intermediaries and provide them ease of doing business.
