To enhance cooperation and coordination two top corporate watch dogs the Securities and Exchange Commission of Pakistan (SECP) and the Federal Board of Revenue (FBR) signed a Memorandum of Understanding (MOU) on Thursday to effectively carry out their respective statutory responsibilities and maintain the highest level of oversight quality, while minimizing duplication of efforts.
The MOU was signed in the backdrop of evolving challenges being faced by the country that necessitate various institutions to develop cooperative linkages for enforcement of laws. The understanding stipulates that SECP and FBR will hold consultation on fiscal policy measures pertaining to non-banking financial institutions, insurance, and capital markets and corporate sector to encourage documentation of economy, promotion of long-term saving culture and corporatization.
Speaking on the occasion, Chairman SECP Muhammad Ali said, the MOU reiterates the commitment of the SECP and FBR to work together in ensuring conducive environment for businesses and investment. It will enhance cooperation between the two institutions and establish a framework for collaboration, coordination and sharing of information in areas of common regulatory and supervisory interest for furtherance of objectives of SECP and FBR.
The representatives of both institutions will meet regularly to coordinate efforts to undertake policy dialogue for achieving uniformity in regulatory approach for sectors under their respective purview and achieving the objectives.
SECP had established bilateral cooperation arrangement with counterpart banking sector regulator, the State Bank of Pakistan in 2003 and updated the cooperation arrangement in 2009 extending the cooperation parameters over the areas like AML/CFT in financial sector, conglomerates and financial inclusion. The mechanism is effective in operation and both regulators hold periodic meeting to deliberate on policy areas that impact whole of financial sector of the economy.
Earlier, the Chairman FBR Syed Mumtaz Haider Rizvi led delegation was briefed on the role, and responsibilities of the commission, and an overview of the corporate sector, capital markets, NBFIs and insurance sector. The briefing also included SECP’s road map and future strategy for regulated entities including the requisite fiscal reforms and highlighted the broad tax proposals which will be shared with the FBR for inclusion in Finance Bill 2012-13.
