SECP accelerates action against defaulting brokers

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ISLAMABAD, March 16 (APP): 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 Pakistan Stock Exchange.
For the purpose, the SECP 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.
“It is encouraging to note that these efforts got a positive
response from international authorities”, said a statement issued by the Commission here on Thursday.
After successfully obtaining information about British
passports and travel details of the owners and director of defaulting brokerage house, the M.R. Securities, the SECP is now sharing these details with Financial Conduct Authority (FCA) of the UK.
The SECP is approaching the FCA, which is an effective
regulator of the UK capital markets, to take up misappropriation of funds and illegal deposit taking by Mazhar Rafiq of M.R. Securities.
Furthermore, the SECP under IOSCO MOU was 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.
Moreover, 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, a the SECP is conducting a comprehensive scrutiny
to find out the lapses that hinder it to effectively discharge its mandated task to control and minimize misconduct, market abuse and financial crime from regulated sectors under its jurisdiction.
Considering that it was 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 call data, family tree of CNIC holders, immigration and passport record and facilities of digital/cyber forensics from relevant agencies.
The authorization of such an access to information and data
will bolster SECP’s enforcement regime at par with the international best practices and standards as set out by the IOSCO.