SECP develops new inspection policy

Policy to ensure regulatory compliance by the participants of the securities market

Express August 10, 2011


The Securities and Exchange Commission of Pakistan (SECP) has developed an inspection policy to ensure regulatory compliance by the participants of the securities market, according to a statement issued on Tuesday. Additionally, an inspection manual and standard operating procedures for the implementation of the policy have also been developed, the report said.

The SECP aims to strengthen market oversight and enforcement through off-site reporting and on-site inspection. The off-site element comprises of periodic reporting by the regulated entities, including the three stock exchanges, which will then be assessed and analyzed to identify potential risk areas and to determine the status of compliance, the SECP said.

On-site inspections will focus on policies, procedures and internal control systems, established by the regulated entities, to assure compliance and to assess their financial health. The SECP said that it intends to conduct inspection of members of the stock exchanges on a regular basis.

The inspection programme aims to promote a culture of compliance and regulatory practices that would be beneficial to the market intermediaries and investors and would facilitate overall growth and development of the capital market.

Published in The Express Tribune, August 10th, 2011.

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