ISLAMABAD: In line with its objectives of promoting good governance practices, ensuring investor protection and having skilled investment advisers, the Securities and Exchange Commission of Pakistan (SECP) has prescribed certification requirement for all those providing advisory services to capital market customers.
Such persons will be required to obtain the Financial Advisors Certification offered by the Institute of Financial Markets of Pakistan (IFM). Furthermore, persons distributing mutual fund units shall be required to obtain the Mutual Fund Distributors Certification offered by IFM.
In order to facilitate compliance with the requirement, existing and new securities and futures advisers have been given a year to obtain the said certification. The certification requirement will also apply to chief executives and heads of advisory function of the entities giving advice to customers.
The certification requirement will promote investor protection by subjecting market intermediaries who provide investment advice to minimum standards and also bring the Pakistani capital market on a par with global jurisdictions.