SECP Makes Risk Disclosure Acknowledgment Mandatory for Futures Brokers

ISLAMABAD – In a significant regulatory update, the Securities and Exchange Commission of Pakistan (SECP) has proposed mandatory customer acknowledgment of the Risk Disclosure Document (RDD) for all futures brokers.

Through S.R.O.1448(I)/2025, the SECP has issued draft amendments to the Futures Brokers (Licensing and Operations) Regulations, 2018. As per the proposed changes, all futures brokers must obtain acknowledgment from their clients—either in written, electronic, online, or digitally authenticated form—clearly confirming that the client has read, understood, and accepted the contents of the RDD.

The acknowledgment must be dated and verifiable to ensure compliance and transparency in futures trading. This initiative is part of SECP’s broader effort to strengthen investor protection and ensure informed participation in the futures market.

Futures brokers and market participants are expected to align their onboarding processes with this requirement once officially notified.