New professional entrants into the capital markets shall be required to attain the relevant certification within one year from the date of employment with the broker. PHOTO: FILE
The Institute of Capital Markets (ICM) will introduce four new certifications in the coming months, bringing their total number to 10 by the end of 2014, ICM CEO Syed Javed Hassan told The Express Tribune in a recent interview.
A securities market institute established with the support of the Securities and Exchange Commission of Pakistan (SECP), the ICM conducts licencing examinations leading to certifications for different segments of the capital markets.
“All jobs in the capital markets should ideally require ICM certifications,” he said, adding that the ICM recently introduced four new certification programmes.
The ICM began by offering stock brokers certification for trading staff of brokerage houses and a separate certification for mutual funds distributors. Last week, it added four new certifications namely markets and regulations certification, fundamentals of capital markets certification, financial derivatives traders’ certification and financial adviser certification. The first examination of new certification programmes will be held in February and March.
Appreciating asset management companies for making ICM certifications mandatory for their front-desk staff, Hassan said the brokerage industry should also follow suit and make the same certification compulsory for its members.
“While Mutual Funds Association of Pakistan has shown determination in this regard, the response from the brokerage industry has been subdued. The regulator needs to step up its monitoring efforts and ask the brokerage houses to make ICM certifications compulsory,” he added.
The SECP issued a circular in 2009 requiring all brokerage houses, asset management companies and pension funds to have at least two persons, or 20% of their employees, whichever is higher, with relevant ICM certifications, responsible for selling collective investment schemes or providing investment advice to clients. However, the circular has now lapsed, Hassan noted.
“New professional entrants into the capital markets shall, however, be required to attain the relevant certification within one year from the date of employment with the broker,” the circular said.
The ICM has an exclusive mandate from the SECP to develop syllabi for all certification programmes, prepare study material and conduct examinations to ensure that only trained and certified professionals operate in the capital markets of Pakistan. A majority of capital markets around the world, including the United States, United Kingdom, India, Hong Kong, Malaysia, have such centralised licensing bodies.
The reason for the brokerage houses’ lack of interest in ICM certification is the holistic nature of its syllabus. According to the CEO of a brokerage house, the course contents are as intensive as a full-fledged MBA programme.
No wonder, out of 100-odd candidates who take the examination for the two programmes every quarter, the share of professionals from the brokerage industry is less than 5%.
Published in The Express Tribune, January 26th, 2014.
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More mafias as if the country does not have enough gatekeepers as it is. Most of the stuff taught in these courses does not even apply in practical life. People are only going for it because you are forcing them to.