Guidelines for Commodity Futures Brokers

 

  1. Always enter/maintain true and correct registration details of customers on the Exchange Trading System, and do not change any detail without prior approval of the customer.
  2. Issue confirmations for trades executed on behalf of customers within 24 hours and obtain acknowledgment thereof.
  3. Ensure that all requisite signed documents have been received from customers including the Account Opening Form and Risk Disclosure Document.
  4. Ensure that Know Your Customer and Customer Due Diligence is being conducted properly in compliance with anti-money laundering laws and the regulations/guidelines.
  5. Ensure that the information contained in the Account Opening Form is updated, complete and correct at all times.
  6. Ensure that all telephonic orders and orders received from customers in person are adequately recorded and preserved.
  7. Maintain proper records of registered offices, authorized persons, branch offices and customers.
  8. Ensure that investor grievance redressal mechanism is in place at all dealing locations such as head office and branch offices.
  9. Ensure that all branch offices are registered with the Exchange.
  10. Ensure that a list of commodity futures contracts that are permitted & traded at the Exchange has been prominently displayed at the head/branch offices
  11. Ensure that the branch offices are following and complying with all the relevant provisions of the rules, regulations, circulars or directives issued by the Exchange and Securities & Exchange Commission of Pakistan (SECP).
  12. Ensure that name of broker, registration number and certificate of registration of branch office along with terms and conditions of branch dealing have been displayed at the registered branches.
  13. Always include the disclaimer specified by the Exchange while making any advertisement.
  14. Ensure that advertisement made by the branch office should have the approval of the broker.
  15. Notify change of the branch head to the Exchange in writing within 24 hours.
  16. Conduct periodic inspections of the branch offices.
  17. Upon noticing any irregularities in the branch office operations, immediately correct or deregister the branch office and report to the Exchange.
  18. Be vigilant about any fraudulent activity of employees and authorized persons.
  19. Approach PMEX in case of any clarification required on compliance-related issues.

  1. Do not maintain anonymous accounts or accounts that are opened or maintained in the name of fictitious persons.
  2. Do not alter or change the terms and conditions of the Standardized Account Opening Form (SAOF). Any additional terms and conditions shall not contradict with the terms and conditions of SAOF.
  3. Do not obtain any blank documents from the customer.
  4. Do not enter any wrong, contradictory or incomplete information on Exchange Trading System.
  5. Do not attract customers by alluring advertisements, rumors, hot tips or the promise of assured returns/fixed profit.
  6. Do not execute discretionary trades on behalf of customers in any manner.
  7. Do not obtain or use the customer’s personal id and password.
  8. Do not advice/direct any customer for the execution of a trade.
  9. Do not raise deposits from public/investors against fixed or guaranteed return on deposits as these activities are illegal and tantamount to defrauding the public.

 

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