The Securities and Exchange Commission of Pakistan (SECP) is introducing a comprehensive mandatory certification regime for enhancing professional standards and protecting investors in Pakistan’s financial services sector.
According to a working paper of the SECP for stakeholders, currently, mandatory certification requirements exist for various activities across the financial services industry including insurance, securities market, and NBFC sectors.
These requirements have been prescribed through various circulars issued under the respective laws, which lack a unified approach.
The proposed overarching regulatory structure will be consolidating these requirements and establishing a single, comprehensive framework governing the training and regulation of financial services professionals, wherein a single certification body/institute authorized by the Commission, will be issuing certification after completing its requirement.
The certification body/institute will only be an examination/certification institute. The certification institute will be offering self-study certifications.
However, it may partner with training institutes or universities with requisite facilities to offer in-person training for a particular certification.
The SECP said that Continuing Professional Education (CPE) refers to the ongoing learning activities that professionals engage in to maintain and enhance their skills, knowledge, and competencies in their respective fields. CPE is essential for ensuring that professionals stay up-to-date with the latest developments, trends, and regulatory changes in their industry.
It is particularly important in fields that experience rapid advancements or frequent regulatory updates, such as the financial services sector
Introducing a comprehensive mandatory certification regime and CPE requirements is crucial for enhancing professional standards and protecting investors in Pakistan’s financial services sector. This consultation paper invites stakeholders to provide their insights and feedback on the proposed framework, contributing to a robust and credible financial ecosystem.
By aligning with international best practices and addressing existing regulatory gaps, we aim to build a financial services industry characterized by integrity, transparency, and professionalism, SECP added.
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It will creat monopoly of one training institution