Regulatory impediments: SECP board for fee reduction

Chairman Khalid Mirza says it is important to simplify and reduce cost of doing business

ISLAMABAD: On the recommendation of its regulation committee, the Securities and Exchange Commission of Pakistan (SECP) policy board has directed the commission to consider a substantial reduction in its fee in order to remove harsh regulatory impediments that hamper growth of financial services and facilitate the ease of doing business.

The policy board met at the SECP head office in Islamabad on Wednesday under the chairmanship of Khalid Mirza.

The chairman said, “We must move towards beneficial regulation of financial services.  It is important to simplify and reduce the cost of doing business. What we are seeking is light regulation, low cost and tough as well as fair enforcement.”

The Pakistan Stock Exchange (PSX) chairman also gave a presentation to the policy board on regulatory and policy issues confronting stock market intermediaries and other operators in the market.

The board agreed, in principle, to all the measures proposed by the PSX including halting the practice of annual licence renewal, reduction of 8 basis points in fee on every rupee under the management of mutual funds, which costs the funds around Rs450 million a year, to 2 bps as well as other measures that would facilitate operations of the financial industry.

Published in The Express Tribune, December 21^st, 2018.

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