ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has proposed formulation of an overarching regulatory structure for regulating professionals in the financial services industry.
The SECP on Tuesday issued a concept paper titled “Consultation on Mandatory Certifications and Continuing Professional Education (CPE) Requirements in Financial Services.”
The paper proposes consolidation of all certification requirements across the SECP regulated sectors with the introduction of a comprehensive regulatory framework for training and regulating financial services professionals. The concept paper has been made available on the SECP website for soliciting public
feedback.
Earlier in 2009, the SECP adopted a mandatory certificate model to enhance the professional competence of financial services professionals and specified the functions and positions in the regulated sector that were required to obtain certifications. In that context, the Institute of Financial Markets of Pakistan (IFMP) introduced relevant
certifications.
The SECP believes that an overarching regulatory structure for regulating professionals is the best way forward. The financial services sector is crucial for economic growth and its professionals are expected to meet high professional standards in order to protect investor interests.
The concept paper also suggests continuing professional education (CPE) to keep professionals updated on industry trends and regulatory changes, thereby promoting a more efficient
and effective regulatory environment.
Currently, mandatory certification requirements exist for various activities across the financial services industry including insurance, securities market, and NBFC sectors. These requirements have been prescribed through various circulars issued under the respective laws, which lacks a unified approach. The proposed overarching regulatory structure will be consolidating these requirements and establishing a single, comprehensive framework governing the training and regulation of financial services professionals, wherein a single certification body/institute authorized by the Commission, will be issuing certification after completing its requirement.
The certification body/institute will only a examination/certification institute. The certification institute will be offering self-study certifications. However, it may partner with training institutes or universities with requisite facilities to offer in-person training for a particular certification
The concept paper is available on the SECP website and interested people and stakeholders can submit their feedback and comments within 14 days of publication of concept paper.
Copyright Business Recorder, 2024