The State Bank of Pakistan (SBP) has unveiled a revised “Regulatory Framework for Exchange Companies (RFEC)” aimed at consolidating and updating governance, IT, and enforcement standards for exchange companies (ECs). The revised framework replaces the existing Exchange Companies Manual and will take effect from January 1, 2025.
“The State Bank of Pakistan (SBP) has undertaken a comprehensive review of the existing regulatory instructions. Accordingly, a consolidated and updated “Regulatory Framework for Exchange Companies (RFEC)” has been developed,” read the notification issued by the central bank.
The RFEC outlines comprehensive corporate governance structures, internal controls, IT systems requirements, and strengthened supervisory and enforcement mechanisms.
Additionally, it introduces updated reporting guidelines, providing a unified source of regulatory guidance for ECs.
The SBP has directed ECs to align their policies, procedures, and systems with the new framework by June 30, 2025, ensuring full compliance. The framework is part of the SBP’s efforts to modernize regulatory standards and enhance the operational efficiency of exchange companies.
