Staff Reporter
Islamabad
In pursuance of its reforms agenda for reforming the non-bank financial services, the Securities and Exchange Commission of Pakistan (SECP) has issued draft Self-Regulatory Organizations (Registration) Regulations, 2021 for soliciting public comments.
These transformational regulations, being introduced for the first time under the SECP Act 1997, are intended to promote establishment of self-regulatory organizations (SROs), to inculcate self-discipline and collective responsibility amongst market players, with a view to enhance investor confidence. Internationally, there has been a shift towards self-regulation; typically involving a unique combination of private interests with government oversight, as it offers an effective and efficient form of regulation for the complex, dynamic and ever-changing financial services industry.
A SRO, having certain degree of regulatory authority over an industry or profession, can serve as a collective forum for advancing objectives of an industry through adoption of higher standards of operations.
