Islamabad, Mar 6, 2025: The selection, extension, and termination of the chief executive officer (CEO) of a professional clearing member require prior authorization from the Securities and Exchange Commission of Pakistan (SECP).
On Wednesday, the SECP issued S.R.O. 244(I)/2025, unveiling proposed revisions to the Professional Clearing Members Regulations, 2020.
The board of directors of a professional clearing member holds the authority to establish the appointment procedure, define the terms and conditions of employment, and manage all related formalities for selecting and appointing the CEO.
The hiring of a CEO must adhere to the following structured process:
- The board must identify and shortlist three candidates who meet the eligibility and suitability requirements specified in these regulations. The board will then recommend one candidate to the SECP for final approval.
- The Commission, upon reviewing the proposed candidate’s suitability, may approve the appointment if satisfied with the individual’s credentials. However, if the SECP deems the nominee unfit for the role, it can request the professional clearing member to propose an alternative candidate for consideration.
Read More:
FBR Revises Mobile LCD Screen Import Values from China & HK
Additionally, professional clearing members must appoint a Chief Compliance Officer (CCO) who meets the prescribed fitness and propriety standards to oversee regulatory compliance.
Read More:
IMF to Ease Pakistan’s Tax Burden This Fiscal Year
The CCO is responsible for submitting a detailed report every six months to both the Board of Directors and the SECP.
This report should outline reported issues, corrective measures implemented, and their current status.
The SECP emphasized the importance of this structured compliance oversight to ensure adherence to regulatory standards.
