PSX intermediaries: SECP Board to review implementation status on January 31

The second meeting of the Securities and Exchange Policy Board will be held on January 31, in which the Board would review the implementation status of the directions given to the Securities and Exchange Commission of Pakistan (SECP) to facilitate stock market intermediaries registered with the Pakistan Stock Exchange (PSX).
Sources told Business Recorder here on Monday that the SECP has taken up the issues with the Ministry of Finance regarding licence renewal fee for stock market intermediaries, brokers, consultants to the issue, underwriters registered with PSX, leasing companies, investment banks, insurance companies and mutual funds.
In the past meeting of the SECP Policy Board, chairman Pakistan Stock Exchange (PSX) had given a presentation to the Policy Board on the regulatory and policy issues confronting the stock market intermediaries and other operators in the market. The board agreed, in principle, to all the measures proposed by the PSX, including ceasing the practice of annual renewal of licence; reduction of 8 bps fee on every rupee under management of mutual funds, which costs funds around Rs 450 million a year, to 2 bps; as well as other measures that would facilitate operations of the financial industry. The board has given directions to the Commission to this effect.
On January 31, the SECP Policy Board would review the status of the implementation of the decisions of the last meeting. On the recommendation of its Regulations Committee, the Policy Board has directed the Commission to consider a substantial reduction in fees so as to remove the harsh regulatory impediments that hamper the overall growth of the financial services market to facilitate the ease of doing business in the country.
According to sources, the renewal fee of non-banking finance companies (NBFCs) is done after every three years. Stock market intermediaries have to pay annual renewal fee for renewal of their licences. This is very harsh for the NBFCs and stock market intermediaries to regularly seek renewal of their licences every year or after three years period, where applicable.
In addition to other decisions, the Policy Board also constituted an insurance committee to delve into the issues and challenges that are being posed to the industry. In the previous meeting of the Policy Board, the oversight, regulation and governance committees of the board were constituted, which also presented recommendations/suggestions of their respective areas.
The SECP Policy Board, in pursuance of Section 12 of the SECP Act 1997, comprises ex officio members of the Ministries of Finance, Commerce, and Law, the SBP, the SECP and persons of eminence from the private sector.