Madrid, 28 July 2015.- The International Organization of Securities Commissions (IOSCO) today published its Assessment Committee’s review of SEC Pakistan’s implementation of IOSCO Objectives and Principles of Securities Regulation (IOSCO Principles).
This is the first Country Review conducted by IOSCO´s Assessment Committee.
The review identifies Pakistan´s progress in meeting international regulatory standards and flags areas in which improvements are needed. Its conclusions indicate that Pakistan’s regulatory framework has undergone significant improvements in the structure and practice of regulation since 2004, when the International Monetary Fund and World Bank issued their last Financial Sector Assessment Program (FSAP) evaluation of the country.
Many of deficiencies and vulnerabilities highlighted in the country review had already been identified by the Securities and Exchange Commission of Pakistan (SECP) prior to this assessment, and an extensive program of legislative and regulatory improvement is currently underway. This assessment strongly endorses key elements of that program but also makes a number of additional recommendations for action for the consideration of the SECP and Federal Government. The Country Review offers the SECP a road map to address issues of significance and acts as a catalyst for policy and regulatory change. Importantly, it sends a signal to investors and others that SECP is committed to addressing the gaps in its regulatory framework.
The SECP welcomed the opportunity of being the first jurisdiction to be assessed by the IOSCO Assessment Committee. It noted that the assessment provided an opportunity for it to comprehensively review its regulatory and supervisory framework for securities regulation and to engage in a constructive dialogue with the Review Team on further enhancements to the framework.
Under a Country Review, a dedicated team reviews an IOSCO member´s self-assessment of its implementation of the IOSCO Principles. This first Country Review was carried out by a Review Team of six experts nominated by member organizations from Dubai FSA, CMA Saudi Arabia, CSSF Luxembourg, CMB Turkey and ASIC Australia, and a member of the IOSCO General Secretariat. The Review Team leader was Richard Britton, an independent consultant. The team members collectively brought a broad range of knowledge and practical expertise to the first review exercise.
Created in 2012, the Assessment Committee also conducts Thematic Reviews of specific IOSCO Principles and Standards across IOSCO’s membership. The aim of these Reviews is to provide a snapshot of implementation of the IOSCO Principles and Standards and to help identify gaps, differences in approach and examples of good practice regarding implementation.