The Securities and Exchange Commission of Pakistan (SECP) published a consultation paper proposing standard principles for the recognition and conduct of industry associations, aiming to strengthen self-regulation in Pakistan’s financial sector. The framework sets out a pathway for eligible industry associations to transition into Self-Regulatory Organizations (SROs) over the next three years, with responsibilities to set ethical standards, monitor industry conduct, enforce compliance and deliver sector-specific initiatives aligned with SECP regulatory objectives. Key proposals include requiring trade associations to convert into not-for-profit Section 42 companies under the Companies Act, 2017, to enhance transparency, governance and financial integrity. The principles emphasise diverse and merit-based membership, strong governance and conflict-of-interest safeguards, stakeholder engagement, fair dispute resolution, a robust code of conduct, and ongoing investment in member training and investor education. The SECP also encourages the creation of specialised associations within regulated sectors to represent distinct sub-sectors and address segment-specific operational and compliance needs. Stakeholders are invited to submit feedback on the consultation paper.
Securites & Exchange Commission of Pakistan 2025-05-12
Securities and Exchange Commission of Pakistan consults on principles to convert industry associations into self-regulatory organizations
The Securities and Exchange Commission of Pakistan (SECP) released a consultation paper proposing principles for industry associations to transition into Self-Regulatory Organizations (SROs) to enhance self-regulation in the financial sector. The framework includes converting trade associations into not-for-profit Section 42 companies under the Companies Act, 2017, to improve transparency and governance. Key elements focus on ethical standards, governance, and member training.