ISLAMABAD, July 31: The Securities and Exchange Commission of Pakistan (SECP) has drafted a new code of conduct for brokers and invited suggestions from stakeholders and general public on it.

The draft code provides guidance and sets minimum standards for brokers in areas like duties of due care, skill and diligence, adequacy of resources and procedures, information exchange with clients, compliance and controls and responsibilities of management.

It aims to protect the interests of clients and ensure proper management of risks associated with the business of the broker.

The broad objectives of the code is to ensure that information provided to customers enables them to take their investment decisions on an informed basis, promptly react against actual or potential losses and reflect on the consistency between their investment objectives and strategies and their actual portfolios.

It is meant to ensure that brokers operate efficiently, impartially and in the best interest of investors when handling customer orders, obtain the best possible result with reference to the time, size and nature of customer orders, taking into account the state of the relevant market.

It is also aimed at ensuring that brokers manage conflicts of interest fairly and provide appropriate disclosure to their customers in this respect.

The overriding principle is that a broker must, at all times, act honestly, fairly and professionally in accordance with the best interests of its customers and the integrity of the market.