The Securities and Exchange Commission of Pakistan (SECP) has signed a memorandum of understanding (MoU) with CFA Society Pakistan (CFASP) a global association of investment professionals in 145 countries, to jointly raise awareness of investor rights and establish the standards of professional excellence in investment management in Pakistan.
The MoU sets the framework for collaboration on promotion of investor rights and financial literacy, and emphasises the importance of the Statement of Investor Rights awareness among both investors and investment management professionals.
This collaboration will help advocate the highest level of ethical standards and ensure fair practices and transparency, all crucial to the sustainable growth and development of Pakistan’s capital and financial industries.
Terming the partnership a very timely move, the SECP Chairman Zafar Hijazi said that protecting investors’ interests, ensuring fair practices and complete transparency in the markets is regulators’ primary responsibility.
He suggested that instead of going through traditional ways, there is a need to adopt modern methods to enhance the public’s awareness of financial matters and highlighting investors’ rights. Hijazi said that independent research reports should be available to investors, therefore there is a need to establish an independent research institute on Pakistan’s capital market. Such an institute can be set up with collaboration between SECP, ICAP and ICMA etc, he added. He appreciated the CFA Society Pakistan for joining hands to spread financial literacy and awareness about the investor rights.
“This MoU is a milestone that marks a long-term, established relationship between the SECP, CFA Society Pakistan and CFA Institute,” said CFA President and CEO of CFA Institute Paul Smith.
“Working hand in hand to support positive developments for Pakistan’s capital markets, individual investors, and the investment management profession as a whole, our work with the SECP and CFA Society Pakistan is a case study of how regulators and industry practitioners can effectively work together to improve the standards of professional excellence in capital markets.”
“As a volunteer group of practitioners, we at CFA Society Pakistan strive to give back to society through many different ways to promote investor protection,” said CFA Society Pakistan President Ashraf Bava.
“Having already conducted knowledge sessions in close collaboration with the SECP to help develop awareness and educate investors on investment products and market developments, the MoU is a major step forward for the capital markets of our country and ultimately, in gaining the trust of investors.”