10th November, 2006

Ref: NCEL/MEM/003/2006

Dear Member,

NCEL Broker Registration – Financial Statements Queries.

Following our circular reference NCEL/MEM/002/2006 dated November 1st, 2006 we have had a number of queries relating to the Broker Registration Process specifically regarding the Financial Statements requirements. Therefore, we would like to clarify some of the points raised.

Statement of Net Capital Balance:
Statements must be dated no later than 90 days from the date of submission to NCEL. Any earlier Statement of Net Capital Balance will not be acceptable.

Statement of Net Worth:
Statements must not be earlier than year ended June 30th, 2006, i.e. at the end of the last financial year. Any earlier statement will not be acceptable.

Additionally, in support of the Statement of Net Worth, Corporate and Individual Members are also required to submit their audited Financial Statements and Wealth Statement for the year ended June 30th 2006, respectively.

Further, only statements certified by Chartered Accountants who are on the panel of the State Bank of Pakistan (SBP) under Category A or B will be acceptable. Certification by any other Chartered Accountant would not be acceptable.

Sincerely,

Arsheen Saulat
Head of Compliance