ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has issued draft Self-Regulatory Organizations (Registration) Regulations, 2021 for soliciting public comments, a statement said on Thursday.
These transformational regulations, being introduced under the SECP Act 1997, are intended to promote the establishment of self-regulatory organisations (SROs), to inculcate self-discipline and collective responsibility among the market players, to enhancing investors’ confidence, it added.
Internationally, there has been a shift towards self-regulation; typically involving a unique combination of private interests with the government oversight, as it offers an effective and efficient form of regulation for the complex, dynamic, and ever-changing financial services industry.
A SRO, having a certain degree of regulatory authority over an industry or profession, can serve as a collective forum for advancing objectives of industry through the adoption of higher standards of operations, promote fair practices, encourage efficient complaint handling mechanisms for improved customer experience and enhance research and development functions.
The draft regulations cover the parameters for the registration and regulation of companies that are eligible to be registered as an SRO under the SECP Act, 1997, and lays down fit and proper criteria applicable to its promoters, directors, chief executive, and chairman of board of directors, the statement said.
The regulations also specify the obligations and functions of an SRO and enable them to make regulations designed to improve transparency and fair play, screening, certification and training requirements, measures to reduce conflicts of interest, and improved compliance with the code of corporate governance. The draft Self-Regulatory Organizations, (Registration) Regulations 2021 have been placed on the SECP’s website. Interested entities, stakeholders, and the general public can submit their comments on the draft within 30 days from the date of its notification. The draft regulations will be finalised in the light of the stakeholders’ consultation and subsequently notified after the due regulatory process, it added.
Source: The News