SECP approves amendments in ETF rules

ISLAMABAD: The Policy Board of the Securities and Exchange Commission of Pakistan (SECP) has approved amendments in Exchange Traded Funds (ETF) Regulations to add flexibility for fund managers to appoint separate intermediaries for the functions of market maker and authorised participant.

This should enable fund managers to easily take onboard market makers, who would now be subject to rationalised regulations for reducing cumbersome requirements and decreasing the cost of doing business.

In addition to regulatory changes, system level modifications have also been made to enable market makers for performing their functions seamlessly with minimum inventory. The approved regulatory amendments aim to provide maximum facilitation to fund managers and market makers through streamlined regulatory requirements based on international benchmarks. The policy board that met here with its chairman Professor Khalid Mirza welcomed the new SECP Chairman Aamir Khan and accredited his joining to the improvement in the stock market and development of new initiatives.

The policy board reviewed the implementation of its decisions of previous meetings and was satisfied with the overall workings of the commission.

The chairman and the board commended Aamir Khan for ensuring that the decisions have been implemented in an expeditious and progressive manner.

The policy board was also given a presentation by the commission pertaining to the implementation of the FATF recommendations, including instances of penalties imposed in various cases. It directed that the FATF guidelines should be followed, but the focus should remain on the areas critical to curb the menace of financing of terrorism/money laundering and “we should take care not to affect business activity”.

Several approvals were made by the policy board including amendments in Futures Brokers (Licensing & Operations) Regulations, 2018. These regulations provide relaxation in education requirement of CEO, elimination of the requirement of NCB, deletion of the requirement of wealth statement, and reduction in frequency of reports by compliance officer.