Securities Advisor is a regulated securities activity under the Securities Act, 2015 and Futures Advisor is a regulated activity under the Futures Market Act, 2016. The Role of securities advisor and futures advisor is to give investment advice to others. The Securities and Futures Advisors are required to be licensed with SECP. Licensing of the securities and futures advisors is regulated by the Act read with the Securities and Futures Advisors (Licensing and Operations) Regulations, 2017.
SFA Regulations prescribe the eligibility conditions, licensing procedure, effect for refusal of licence, renewal, general obligations and responsibilities of securities and futures advisors. A person desirous of acting as securities or futures advisor shall make an application to the SECP in terms of regulation 5 of SFA Regulations.
Grant of Licence
The SECP, if satisfied that the applicant is eligible for licence as a securities or futures advisor, the applicant is in compliance with the provisions of the Act/Futures Act, these regulations and any directives/guidelines/codes issued thereunder and that it is in the interest of the public and the capital market, may grant licence as securities or futures advisor to the applicant. The licence of a securities and futures advisor shall be valid for one year.
Renewal of Licence
The licence is renewable on payment of fee as prescribed in the Schedule I of the SFA Regulations. Requirements for renewal of licence are stipulated in regulation 8 of the SFA Regulations.
The detailed procedure for grant /renewal of licence as securities advisor may be seen in Securities and Future Advisor (Licensing and Operations) Regulations, 2017