KARACHI, July 30: The Securities and Exchange Commission of Pakistan (SECP) is conscious of the need for reform among financial professionals and firmly committed to bringing about dynamism and professionalism among them.
Addressing the Board meeting of CFA Association of Pakistan here on Saturday, SECP Chairman Dr Tariq Hassan said that in cognizance of its mandate to protect investors’ interest and international developments, the SECP considered it expedient to bring the activities of financial professionals within the regulatory net.
“We also recognize that further development of our financial markets requires that higher standards and superior quality of financial analysis and asset management are provided to the investors,” he added.
Elaborating on the consultative approach followed by the SECP, Mr Tariq said that he would like to bring on the board professionally sound people, so that the policy and regulatory measures instituted by the SECP were well-accepted.
He said that a number of issues were needed to be addressed, such as minimum qualification requirements for these professional service providers, their registration, as well as mechanisms for achieving integrity and independence.
He also asserted that the regulatory structure in case of financial analysts must be defined. “Financial analysts exert considerable influence in today’s marketplace. Their recommendations can significantly influence a company’s stock price particularly when these recommendations are widely disseminated through electronic and print media besides influencing individual investment decisions,” he added.
In view of their key role in the financial sector, he urged the CFA Association to assist the SECP in achieving its desired objectives of higher professionalism, technical proficiency and integrity among financial analysts and asset managers. He said that despite the odds, the SECP was determined to progress on this agenda.—APP
