At the opening ceremony of the 27th Annual International Institute for Securities Market Growth and Development at the United States Securities and Exchange Commission (US SEC), the Acting Chairman US SEC Michael Piwowar lauded the recent developments undertaken by the SECP in its regulatory framework, particularly the securities’ laws.
He appreciated that there are also new amendments to the securities law in Pakistan that allow the Securities and Exchange Commission of Pakistan (SECP) to assist foreign authorities by obtaining any information from any person at the request of a foreign authority, even if the potential violation in the foreign country would not violate the law in Pakistan. The SECP has been a signatory to the IOSCO MMOU since 2011, but this new comprehensive assistance available from the SECP goes beyond the minimum standards of the MMOU, and serves as a model for other jurisdictions.”
Delegates from around 50 jurisdictions are attending the US SEC Spring Institute’s program, including SECP’s participants at US SEC’s special invitation.
The SECP has achieved international recognition for its efforts to reform Pakistan’s securities markets and extend international cooperation to the member countries of the International Organisation of Securities Commission (IOSCO), helping global efforts to detect and prevent violations of securities’ laws.
The IOSCO’s assessment committee has acknowledged these efforts while reviewing the SECP’s progress to implement the IOSCO recommendations; made after its review of Pakistan’s legal and regulatory framework, and practices and system of securities regulations against the international standards. The SECP has successfully implemented the review findings that called for significant legislative, policy and regulatory reforms which included amendments to the 1997 SECP Act, Promulgation of the 2015 Securities Act as well as amendments to various rules and regulations.
Remarkable achievement remained the amendments to the SECP Act, which not only enhanced the SECP’s powers but also gave it a role in addressing systemic risk as well as assisting foreign securities regulators in the enforcement of securities laws. Various reforms have also been implemented in a supervisory architecture to address the weak areas in Pakistan’s regulatory system and procedures, including; regulatory compliance audit of SROs, comprehensive risk-based supervision and enforcement regime complemented by joint inspections regime by SROs and enhanced reporting requirement for brokers. The implementation of these reforms contributed to investor protection, fair and efficient markets and reduced systemic risk in Pakistan’s securities markets and improved regulatory capability.
Further, the World Bank team carrying out an assessment of Pakistan’s financial reporting and auditing practices under Report on Observance of Standards and Codes of Auditing and Accounting (ROSC) praised the SEC’s tremendous efforts to implement international financial reporting standards in the corporate sector of Pakistan.
Being a signatory to the IOSCO MMoU, the SECP is committed to extending full assistance to increase the effectiveness of investigations and enforcement of foreign jurisdictions’ laws and regulations, while recognising the rights and privileges afforded to persons in Pakistan.
