ISLAMABAD: The appointment, renewal and termination of services of the chief executive officer of a professional clearing member shall be made with the prior approval of the Securities and Exchange Commission of Pakistan (SECP).
The SECP has issued SRO 244(I)/2025 on Wednesday to notify draft amendments to Professional Clearing Members Regulations, 2020.
The board of directors of a professional clearing member shall determine the manner of appointment, terms and conditions of appointment and other procedural formalities associated with the selection/appointment of the chief executive officer.
A chief executive officer shall be appointed by the professional clearing member through following process:
(i) The board shall shortlist the names of three persons meeting the fit and proper criteria provided in these regulations and shall submit one name with its recommendation for approval of the Commission.
(ii) The commission may, if satisfied that such person is suitable for appointment by the professional clearing member as chief executive officer of the professional clearing member, grant its approval for the same: Provided that, if the Commission is not satisfied with the suitability of the proposed person for appointment of chief executive officer, it may refer the matter back to the professional clearing member for proposing another name for consideration of the Commission.
The professional clearing member shall have a chief compliance officer, who shall be a fit and proper person, to oversee compliance function of the professional clearing member.
The chief compliance officer shall, submit a comprehensive report on semi-annual basis to the Board of Director and the Commission regarding matters reported during the respective period, corrective actions taken and their status, the SECP added.
Copyright Business Recorder, 2025
