ISLAMABAD: The SECP Policy Board on Tuesday reiterated that the officials of the Securities and Exchange Commission of Pakistan (SECP) currently working on an attachment basis with law enforcement agencies should be reverted to the commission.

The board also directed the SECP that the files impounded by the Federal Investigation Agency (FIA) and National Accountability Bureau (NAB) should be recovered.

The board meeting chaired by Professor Khalid Mirza discussed the letter written by the commission to NAB regarding release of officers working in the bureau on an attachment basis.

The issue has already created rift between the two government institutions. The Policy Board has been stressing that the SECP has powers under the law to prosecute cases related to malpractices and violation of laws. The board believes that such cases should be referred to NAB and FIA only after the regulator has failed to proceed further in probing such cases.

Fee reduction

The Policy Board approved substantial reduction in National Clearing Company of Pakistan (NCCPL) fees to facilitate investors.

It also approved the process for appointment of nominees on the Boards of Pakistan Stock Exchange, Central Depository Company and NCCPL.

The Policy Board also gave final directions to the Commission for reconstructing the SECP Annual Report, 2019 to include future outlook and plans.

The board also approved the recommendations of its Insurance Committee which said that the Ministry of Commerce and SECP should convince the provincial revenue authorities to remove Sales Tax from life, health and reinsurance as it was proving a major impediment to the growth of insurance sector.

This is also acting as a barrier to new entrants whereas foreign insurers were leaving the Pakistani insurance market due to high taxation, the committee noted.

The committee recommended that Pakistan Reinsurance Company Limited should undertake the value assessment regarding retrocession from the independent firm.

It further recommended that the SECP should review the concept of creating a reinsurance pool by local insurance companies to ensure that foreign exchange does not flow out of country under various ‘fronting’ practices.

Published in Dawn, January 8th, 2020