SECP’s recommendations through its report on ‘Regulation of Nominee Accounts in Emerging Markets’, have been approved by the International Organisation of Securities’ Commissions (IOSCO)’s Emerging Markets Committee (EMC) at the EMC annual conference in the Dominican Republic.
Based on a survey of the 20 EMC member jurisdictions, the report aims at assisting the members of the Emerging Markets Committee in obtaining a better understanding of different practices and regulations concerning the nominee account system that operates in different member jurisdictions, and in identifying useful regulatory elements that could be adopted by the members. The report emphasises the need for adequate client identification measures and disclosure requirements, combined with the segregation of clients’ securities from the intermediary’s own securities in order to avoid any misconduct by the nominee account operator.
The SECP has been a member of the IOSCO since 1993 and has been chairing the IOSCO EMC’s WG3, since October 2003 when Pakistan got elected to chair this important international forum. SECP has earlier worked on the following mandates since becoming the chair of IOSCO’s EMC WG3. SECP, being member of lOSCO, has made progress that includes cross-border activities of market intermediaries in emerging markets –in March 2005, Guidance to emerging markets regulators regarding capital adequacy requirements for financial intermediaries- in December 2006.
