Inside Financial Markets

SECP accelerates action against defaulting brokers

The Securities and Exchange Commission of Pakistan (SECP) has accelerated its efforts to curb the misconduct, market abuse and financial crimes of defaulting brokers of the Pakistan Stock Exchange, a statement said on Thursday.

The commission is effectively making use of the international cooperation forum for regulation of securities laws: the International Organization of Securities Commissions (IOSCO) to confront the bad players in the market. These efforts got a positive response from international authorities, it added.

After successfully obtaining information about British passports and travel details of the owners and director of the defaulting brokerage house, M.R. Securities, the SECP is now sharing these details with the Financial Conduct Authority of the UK.

The commission is approaching the FCA, which is an effective regulator of the UK capital markets, to take up misappropriation of funds and illegal deposit taken by Mazhar Rafiq of M.R. Securities.

Further, the SECP under IOSCO MMOU is providing the records and particulars of the owners of the defaulting brokers, Ace Securities, to the Canadian securities regulatory authorities, which were very responsive to the SECP’s earlier requests for assistance in the matters of absconding brokers, it said.

Thestatement also said the SECP has also provided details of some potential defaulting brokers to the interior ministry for placement of their names on the exit control list.

At present, the SECP is conducting a comprehensive scrutiny to find out the lapses that hinder it to effectively discharge its mandated task to control and minimise misconduct, market abuse and financial crime from regulated sectors under its jurisdiction.

Considering that it is important to have unhindered access to information and data relating to the SECP’s inquiries, investigations or inspections, the SECP has also written to the Ministry of Interior through Ministry of Finance, for its direct access to telephone calls data, family tree of CNIC holders, immigration and passport record and facilities of digital / cyber forensics from relevant agencies. The authorisation of such an access to information / data will bolster the SECP’s enforcement regime at par with the international best practices and standards as set out by IOSCO.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)