Capital markets: SECP strives to bring best global practice

Submits assessment report to international commission.

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has said it is striving to build the regulatory framework of Pakistan’s capital markets in line with best international standards and practices.

In this regard, the SECP has completed self-assessment of 37 principles of securities’ regulation of the International Organisation of Securities Commissions (IOSCO).

An assessment report, which sets out detailed assessment of the principles as well as provides a roadmap for full implementation of all principles, has now been submitted to the IOSCO assessment committee for a third party review.

Based in Madrid, the IOSCO is the global forum for cooperation among securities regulators and the global standard-setter for regulators of securities market structure and operations.

The IOSCO principles provide an international benchmark for securities regulation practices against which progress of member jurisdictions on effective regulation can be measured.

While the IOSCO provided a detailed assessment methodology and criteria, the SECP formed an internal committee to assess the 37 principles. The main sources of information used in undertaking the assessment were relevant legislation and existing practices regarding the regulation of securities markets.

The processes used during this work included desk research, questionnaires to various stakeholders, Pakistan 2004 FSAP assessments, regulatory and surveillance arrangements adopted by the SECP, and systems and procedures adopted by intermediaries in complying with the law and other public or non-public documents.

The SECP was last assessed against 30 IOSCO principles in 2004 by the World Bank, under the World Bank Financial Sector Assessment Programme (FSAP) when most of the international standards were partly implemented in Pakistan.

Since 2004, significant changes have taken place in Pakistan’s capital markets in terms of market development and upgrading of the regulatory framework.

The IOSCO committee will now conduct a desk-based research of the SECP’s report as well as an onsite visit to Pakistan to evaluate the implementation of international standards within the regulatory framework for securities markets.

A final report is expected to be drafted by the assessment committee in July 2014 for approval of the IOSCO board.

Published in The Express Tribune, December 4^th, 2013.

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