PSX rebuttal

Pakistan Stock Exchange (PSX) strongly repudiates the assertions made in the article by Mr. Richard Morin published in various print media. This is a ruthless attempt to malign PSX and SECP (the Apex Regulator). PSX being a National Exchange enjoys a high degree of credibility as a front line regulator.

The article is a collection of frivolous allegations and fabrications which are far from reality. Whereas the fact remains that Mr. Richard Morin disclosed his positions of Founder, CEO and CCO of Archer Wealth Management (AWM) on a form submitted before his appointment, with a footnote mentioning that “Appointment of Successor is in process.” As per his employment contract the MD-PSX was not allowed to be directly or indirectly involved, engaged or interested in any capacity (including but not limited to as employee, officer, director, shareholder, trustee or agent) in any other business other than the business of PSX.

On joining PSX Mr. Richard Morin also submitted the Employee’s data form in which he clearly “disclosed” his complete disassociation as Founder, CEO and CCO of AWM. Based on the findings of the explanation process, it was evident that Mr. Richard Morin made a false declaration of leaving AWM and has himself accepted his association in writing as Shareholder, CCO and also portfolio manager which was never disclosed earlier. Mr. Richard Morin continued to manage the affairs of AWM and even signed the Anti Money Laundering and other Compliance Reports of AWM even till his last day at PSX. This was not only a conflict of interest but also endangered the reputation of PSX and its interests by making the AWM and PSX Associated companies. PSX reserves the right to report this major violation to the relevant international authorities.

The enquiry conducted by the Board of PSX revealed that some obvious and blatant violations were committed by Mr. Richard Morin, which includes false declaration on Employee’s Form, concealment of material facts, conflict of interest [sharing of time and resources simultaneously for his own company, while being employed by PSX], failure to comply regulations, compromised on applicable fit & proper criteria, violation of Articles of Association of PSX, failure to meet contractual obligations, etc. Upon being confronted with the findings of the wrongdoings committed by him, he preferred to step down on his own and tendered his resignation instead of facing the investigation, which was unanimously accepted by the Board allowing him to take a graceful exit. However, it is disappointing that after leaving the exchange and the country, he has chosen to make false and incorrect statements.