SECP calls for professional certification

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has advised the entire stock market chain, including exchanges, depository and clearing companies to get all their professionals obtain certification from the Institute of Capital Markets (ICM) by September 2016, an official said.
The Securities and Exchange Commission of Pakistan has advised the stock exchanges, National Clearing Company of Pakistan Limited (NCCPL) and the Central Depository Company (CDC) to ensure that all their employees dealing with the customers, risk management, clearing and settlements, compliance and those engaged in providing trustee and custodian services obtain Pakistan Markets and Regulation Program (PMR) and Fundamentals of Capital Market (FCM) certifications of ICM within 18 months.
Earlier, only 20 percent of the professionals working with the brokerage houses were required to get the certification from Institute of Capital Markets.
This mandatory requirement is made to develop human capital in the financial markets and building investors’ confidence by enhancing professional competence of individuals working in these markets, the official said.
All existing professionals employed by the brokerage houses who are engaged in various activities related to securities are required to obtain Pakistan Markets and Regulation Program (PMR) and Fundamentals of Capital Market (FCM) certifications currently being offered by the Institute of Capital Market (ICM).
Brokerage house personnel interfacing and advising clients to buy, sell or hold instruments and Customer relation officials those interacting with the clients are required to obtain the above certifications, the official said.
Moreover, research analysts carrying out fundamental and technical analysis; traders receiving and executing clients or proprietary orders; those managing both the company and client risks; those working in the back office, including those interacting with depository and clearing company, and managing client accounts; and compliance officials engaged in ensuring compliance with all the applicable capital market regulatory framework need to get these certifications.
Besides, brokerage house personnel advising the clients about investments are required to obtain Stock Broker Certification (SBC) currently being offered by Institute of Capital Markets by December 31, 2016, the official said.
All new professionals joining brokerage houses, exchanges, depository company and clearing house are required to obtain the abovementioned certifications within 12 months of their joining, the official added. —Javed Mirza