SECP Introduces Fit-and-Proper Criteria for Corporate Restructuring Company Executives
The Securities and Exchange Commission of Pakistan (SECP) has implemented fit-and-proper criteria for key executives of corporate restructuring companies (CRCs) to bolster risk management and transparency in approval procedures.
Outlined in a circular accessible on the SECP’s website, the criteria assess the integrity, track record, financial stability, competence, capability, and potential conflicts of interest of individuals holding positions such as promoters, major shareholders, board members, directors, and CEOs within CRCs. Compliance with these standards is ongoing, and CRCs must ensure continuous adherence.
READ ALSO — 4.9 Magnitude Earthquake Strikes Islamabad and Surrounding Regions
Additionally, CRCs are obligated to monitor changes in the status of their CEOs and directors. Should any change lead to non-compliance with the Fit-and-Proper Criteria, the CRC’s board must promptly suspend the individual, notify the SECP, and commence the process of replacing them with a suitable candidate.
This initiative aims to streamline CRC licensing procedures, enhancing confidence and reliability in the sector. Annexures providing guidance on information required from promoters, major shareholders (excluding corporate bodies), proposed directors, and proposed CEOs have been appended to the circular.