The Institute of Capital Market (ICM) has planned to launch a nation-wide "investors education programme" for existing and future investors. "This in an extensive programme that would be launched in almost all big cities across the country to educate the existing and future investors and general public about their investment", Syed Javed Hassan, CEO of ICM told Business Recorder on Monday.
This nation-wide programme would be launched with the collaboration and support of all stakeholders of the capital market; he said adding that various chambers of commerce and industry would also be extending their support. He pointed out that Securities and Exchange Commission of Pakistan (SECP) is backing this nation-wide programme to create awareness among investors about the investment in capital market and in other avenues of investment. The ICM was established and started its operations I late 2009, as a not-for-profit entity, licensed under Section 42 of the Companies Ordinance, 1948. The ICM's main objective is to raise the knowledge levels and standards of business practice through certification programme for the various functions in the financial service industry, and enhance financial literacy among existing and potential investors through focused investor education programme.
He informed that the institute has launched two certification programmes namely ICM Mutual Fund Distributors Certification Programme and ICM Brokers Certification Programme - the former provides mutual funds marketing and distribution staff with knowledge of mutual funds, while the latter serves as a basic qualification for employees of brokerage firms who provide buy/sell investment advice to retail and institutional clients.
The institute plans to launch the ICM Pakistan Markets and Regulations Certification Exam which is proposed to become part of a licensing certification programme, titled as "Analyst Certification Programme". Other programmes in pipeline will cover such areas as Financial Advisors Certificate, Commodities Brokers Certification, Compliance for Equity Brokerage Houses and Fund Management Companies, Risk Management & Market Surveillance, Financial Analysis, Modelling and Valuation and Portfolio Management.
He said that the institute is trying to develop a pool of certified professionals, skilled not only to deal in conventionally traded instruments, but also to develop and trade new and complex capital market and insurance products. ICM will also provide a platform for independent research and development, exchange of ideas and provision of consulting services on capital markets and related issues. The ICM is focused to improve the quality of skills and knowledge standards in Pakistan and to conduct various licensing examinations leading to certifications for different segments of the capital markets.
He said the ICM Brokers Certification Programmes serves as a basic qualification for employees of brokerage firms providing buying/selling investment advice to retail nad institutional clients focusing on key concepts and principles relating to regulation, valuation, trading, clearing and settlement of listed securities at stock exchanges. Emphasis is placed on analysis and risk/reward relationship of investment strategies. Currently there are 480 candidates enrolled for this certification programme.
He said that the ICM Mutual Fund Distributors Certification programme provides mutual funds marketing and distribution staff comprehensive knowledge of working of mutual funds including operational and technical details. Currently, there are in total 463 candidates enrolled in this programme.
He was optimistic that around 50 percent of the total market participants would be fully trained by the year 2015. He pointed out that the next eight programmes to be launched during the year 2012-13 include ICM Pakistan Markets and Regulation; ICM Compliance for Equity Brokerage Houses and Fund Management Companies; ICM Financial Advisers Certification; ICM Risk Management & Market Surveillance; ICM Commodities Brokers Certification; ICM Securities, Clearing & Settlement Operations; ICM Financial Analysis, Modelling and Valuation and ICM Portfolio Management.
He said ICM plans to undertake research in related areas of concern, but only if mandated by the stakeholders. However, this research will be specialised, neutral, on a need basis and also priced. All the ICM examinations are conducted in the computerised environment in Karachi, Lahore, Islamabad and Peshawar under the aegis of National Testing Service (a subsidiary of COMSATS, Government of Pakistan), which has the capacity to conduct these examinations in any other major city of Pakistan also, depending on the need and enrolment of candidates. These examinations are conducted quarterly, every year in the months of February, May, August and November and are presently being held simultaneously at Karachi, Lahore, Islamabad and Peshawar, examination centers will be increased with the passage of time and on need basis.