New regulations: SECP makes annual on-site inspection mandatory

ISLAMABAD:

In order to increase the rate of regulatory compliance, the Securities and Exchange Commission of Pakistan (SECP) had made annual on-site inspection mandatory for all licensed entities including the brokerage houses.

To achieve the strong regulatory environment the SECP will increase its enforcement capacity by 200%. The enforcement departments will be trained and equipped with latest and effective tools of auditing, said a press statement.

Besides annual on-site inspection of all licensed entities, quarterly offsite monitoring will also be conducted. This will increase transparency, investor confidence and foreign portfolio investment.

The companies, that will refuse annual inspection to SECP’s enforcement team, will be imposed with heavy penalty and suspension of the licenses wherever applicable in the law.

Published in The Express Tribune, January 29^th, 2013.

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