The SECP chairperson highlighted the project, "Leading Efficiency through Automation Prowess (LEAP)" that entails end-to-end automation, and digitization of over 250 regulatory procedures. He said that the LEAP would transform the SECP into a modern and responsive regulator through embedding end-to-end automation, stronger risk management, transparency and fairness, while delivering a world-class experience to its stakeholders.
Aamir expects that it will improve the ease and cost of doing business, promote financial inclusion, automate enforcement actions and internal approvals, and help monitor and improve turnaround times through use of data analytics for meeting key objectives.
The project will be implemented within a period of two years to achieve end-to-end digitalization of all internal and external regulatory approvals; launch of Secured Transaction Registry (STR) and introduction of Extensible Business Reporting Language (XBRL) for financial reporting for data access and reliable analysis.
Aamir said that the SECP certainly liked to engage and partner with other government institutes for taking the project further. Presently, the SECP is successfully offering a single-point online application through e-services that enables registration with six separate agencies including the FBR.
"We have also envisaged and established a centralised 'Know Your Customer' (KYC) repository system for the entire capital market space, where investors have to go through the KYC, once only.
Our systems can also help banks open accounts of corporates, where they can access and use information available with us to facilitate the account opening process," Aamir said. The SECP chairperson said that it was also imperative to match the pace of human development and prepare ourselves for a world, where technological sophistication of the regulated sector would be requiring new skill sets at the SECP.
Aamir said that greater technological integration and digitalisation also dictate closer coordination between multiple government agencies to tackle emerging issues. Talking about the recently introduced structural reforms within the SECP, he said that he had recently centralised the SECP's adjudication function by merging four departments from separate operational divisions for efficient, transparent and uniform resolution of cases.
Aamir revealed that the SECP was in the process of setting up a dedicated Systemic Risk Department that would be responsible to identify, monitor and manage systemic risk appropriate to the SECP's mandate. He believed that without an enabling regulatory environment that accommodated and encouraged innovation, the progress and performance of the market and the industries would be left far behind.
"Our laws need to be simplified, streamlined and need to be made consistent with the laws applicable in the overall financial market," he underlined. Aamir shared the example of private equity and venture capital funds, and said that in the absence of an aligned foreign exchange control and taxation regime, private funds were preferring to establish such funds in jurisdictions with simpler and encouraging framework.
In my view, Aamir said, there is a dire need for the SECP, the SBP and the FBR to jointly address such issues to ensure an enabling environment encompassing investments, flow of funds and taxation to develop viable business models that can effectively compete with the outside world.