SECP directive to bourses: all professionals must obtain PMR, FCM certifications

All professionals employed by the brokerage houses engaged in activities related to securities including trading/sale and marketing, etc, shall obtain Pakistan Markets and Regulation Program (PMR) and Fundamentals of Capital Market (FCM) certifications currently being offered by Institute of Capital Market (ICM).
According to circular 9 of 1025 issued here on Thursday, the SECP has directed stock exchanges to ensure mandatory certification for the professionals of capital market.
With a view to inculcate good governance practices in the Pakistan capital market and in order to have professional/skilled personnel working with the brokers, the Security and Exchange Commission of Pakistan Act, 1997 issued the circular No.9/2015 in supersession to its earlier circular No.34 of 2009 dated October 30. 2009 regarding the mandatory certification for the professionals of capital market. Now, the SECP has issued circular No.9/2015 for compliance. Moreover, all exchanges are directed to ensure dissemination of new circular to its brokers/ TREC holders for compliance, it said.
The SECP said that in order to develop human capital in the financial markets and building investor confidence by enhancing professional competence of individuals working in these markets, the SECP has issued mandatory certification for the professionals of capital market.
In addition to above certifications, all existing professionals engaged or employed by brokerage house for sales function i.e. advising the clients about investments shall obtain Stock Broker Certification (SBC) currently being offered by ICM by December 31, 2016.
All new professionals joining brokerage house after the date of the issuance of new circular and engaged in the activities as stated above shall obtain PMR and FCM certification within 12 months of their joining. however, if a new professional is engaged in sales function of brokerage house i.e. advising the clients about investments, he/she shall obtain SBC in addition to PMR and FCM certification within 12 months of' their joining, the SECP said.
All existing professionals employed by Exchanges, Depository or Clearing company for the specified activities shall obtain Pakistan Markets and Regulation Program (PMR) and Fundamentals at Capital Market (FCM) certifications of ICM within 18 months of the issuance of this circular, SECP added.
The professionals desirous of availing certification through grandfathering provision should approach ICM for details and this provision will lapse after December 31, 2015.
All the professionals working with or working for the aforesaid entities in respect of above defined activities shall comply with the applicable mandatory certification requirement. It shall be responsibility of entities to ensure compliance of above requirements by any third party to whom any of the above mentioned function or activity has been delegated, SECP said.
The new circular will supersede earlier circular No.34 of 2009 dated October, 30, 2009. The circular shall come into force with immediate effect and all referred entities are required to ensure its meticulous compliance in letter and spirit.