In a move aimed at strengthening the competency and professionalism within Pakistan’s financial services sector, the Securities and Exchange Commission of Pakistan (SECP) has issued the draft SECP (Certification of Associated Professionals in the Financial Services) Regulations, 2025 for public consultation. These proposed regulations are designed to ensure that professionals operating within the financial sector maintain high standards of knowledge, ethics, and competence to effectively serve investors and uphold market integrity.
The SECP’s draft regulations, released on March 26, 2025, introduce mandatory certification requirements for individuals engaged in various financial services roles, including intermediaries, agents, and distributors. By mandating certifications, the SECP aims to ensure that these professionals possess the necessary skills and expertise to navigate the complexities of financial markets and provide high-quality services to investors.
A key aspect of the proposed regulations is the establishment of a structured certification framework that will enhance the quality of financial advice and services. Under the new regime, the SECP will designate a reputable institute to manage the certification process. This institute will be responsible for administering examinations, accrediting individuals, and overseeing Continuing Professional Education (CPE) programs, ensuring that professionals remain up-to-date with the latest industry standards and regulations.
The SECP recognizes the critical role the financial services sector plays in ensuring economic stability and fostering investor confidence. With the global financial landscape constantly evolving, it is essential that professionals working in the sector adhere to rigorous standards of knowledge and ethics. The draft regulations aim to address this need by raising the bar for qualifications within the industry, ultimately promoting more informed and trustworthy financial practices.
One of the major benefits of the proposed certification regime is the enhancement of investor protection. By ensuring that professionals are well-trained and knowledgeable, the SECP aims to reduce the risk of fraud and mismanagement in the financial sector. Moreover, the regulations seek to promote market integrity by aligning Pakistan’s financial services industry with international best practices, creating a more transparent and reliable environment for both investors and institutions.
Additionally, the draft regulations emphasize the importance of continuous professional development. The CPE programs mandated by the SECP will provide financial professionals with the tools to stay current on industry trends, legal changes, and emerging technologies, ensuring that they maintain high standards throughout their careers.
The SECP has invited feedback from a wide range of stakeholders, including financial institutions, industry professionals, and the general public, to ensure that the draft regulations are comprehensive and reflect the needs of the sector. The regulator has emphasized that stakeholder input is essential to the finalization of the regulations and will help to shape the future of financial services in Pakistan.
The introduction of these certification regulations marks a significant step toward professionalizing the financial services sector and improving investor confidence in the country’s markets. With the evolving nature of the global economy and increasing regulatory scrutiny, having well-trained professionals will be crucial to navigating the complexities of the financial world. As the SECP prepares to finalize the regulations, industry stakeholders will have the opportunity to influence the framework and ensure that it meets the challenges of the modern financial landscape.
By establishing these certification standards, the SECP is laying the groundwork for a more resilient, transparent, and trustworthy financial services industry in Pakistan—one that is better equipped to serve the needs of investors and contribute to the country’s economic growth.