The Securities and Exchange Commission of Pakistan (SECP), in collaboration with the Pakistan Stock Exchange Limited (PSX), conducted a webinar on Promoting Transparency and Market Integrity: “Prudential and AML/CFT Compliances”, as part of its ongoing efforts to enhance market transparency, strengthen regulatory compliance, and safeguard the rights and interests of investors.
Senior SECP officials led the session, offering an in-depth overview of the core obligations of Securities Brokers under the Securities Act, 2015 and the Securities Brokers (Licensing and Operations) Regulations, 2016. These obligations include holding a valid Securities Broker license and operating strictly within its permitted scope; safeguarding and segregating clients’ assets; maintaining adequate financial resources and capital adequacy; keeping proper books of accounts, records, and audit trails; and establishing sound internal controls, compliance systems, and complaint-handling mechanisms, among others.
Participants were also given an in-depth overview of the obligations of regulated persons as stipulated under the AML Act, 2010, and the AML/CFT/CPF Regulations, 2020, including risk assessment, Know Your Customer (KYC), Customer Due Diligence (CDD), Independent Audit, the Compliance Function, and related reporting requirements.
The webinar further highlighted the importance of establishing robust internal controls, investing in staff capacity building through regular training, implementing effective compliance frameworks, and adopting a proactive, risk-based approach. It also emphasized performing Customer Due Diligence (CDD) and Enhanced Due Diligence (EDD) for high-risk customers, filing Currency Transaction Reports (CTR) and Suspicious Transaction Reports (STR) where required, and identifying Ultimate Beneficial Owner(s) (UBO) — measures that enable Securities Brokers to ensure effective compliance with their fiduciary and reporting obligations.
PSX officials highlighted key market-related concerns and misconceptions, in response to which the SECP provided regulatory clarifications to help market participants better understand and achieve effective compliance. The session drew substantial participation from Securities Brokers, reflecting strong market engagement and a firm commitment to regulatory awareness and compliance excellence.
The SECP reaffirmed its commitment to continuing such awareness sessions to help Securities Brokers keep pace with evolving regulatory expectations and to foster a strong culture of compliance across the capital market.
