Karachi: The Pakistan Stock Exchange (PSX) has issued a directive requiring stock brokers to submit clients’ assets segregation statements duly verified by statutory auditors.
This initiative aims to enhance transparency and ensure compliance with PSX regulations.
The notification issued by the stock exchange serves as a reminder to all TRE Certificate Holders regarding the pertinent PSX Regulations, which state that “the broker within 45 days of the close of its financial year shall submit an annual ‘clients’ assets segregation statement, duly verified by its statutory auditors.”
In accordance with these regulations, all TRE Certificate holders whose financial year concludes on December 31, 2018, are obligated to submit their annual clients’ assets segregation statements (CASS) that have been duly verified by their statutory auditor. This submission must occur within the stipulated time period following the closure of their financial year, with the deadline set for Thursday, February 14, 2019.
The PSX has emphasized the importance of timely compliance with this directive to uphold market integrity and transparency. Failure to submit the required annual verified CASS within the prescribed timeframe may trigger enforcement actions, as per clause 20.5B.3 of PSX Regulations. These potential actions may include the following:
i. Switching off of trading terminals.
ii. Imposition of financial penalties.
To ensure adherence to these regulatory requirements, all TRE Certificate Holders are urged to promptly submit their annual CASS, duly verified by their statutory auditor. By complying with these regulations, stock brokers can contribute to maintaining a robust and compliant financial ecosystem within the PSX.
This directive underscores the PSX’s commitment to upholding the highest standards of transparency, accountability, and regulatory compliance within the stock exchange. By requiring brokers to provide verified clients’ assets segregation statements, the PSX aims to strengthen market integrity, protect investors, and promote trust among market participants.
The annual submission of CASS that has been reviewed by statutory auditors is crucial in ensuring that clients’ assets are adequately segregated and protected. These statements provide a comprehensive overview of how brokers manage and safeguard their clients’ funds and investments.
In summary, the directive issued by the Pakistan Stock Exchange mandating stock brokers to submit verified clients’ assets segregation statements underscores the exchange’s commitment to regulatory compliance, transparency, and market integrity. The submission of these statements, reviewed by statutory auditors, is essential for upholding trust and accountability within the stock exchange and safeguarding the interests of investors and market participants. All TRE Certificate Holders are urged to adhere to this directive and submit their annual CASS within the prescribed timeframe.
