SECP Moves to Make Company Closures More Transparent

The Securities and Exchange Commission of Pakistan (SECP) has introduced a proposed framework to enhance transparency in company closures and the recovery of financially troubled businesses. The framework aims to establish a professional qualification system for official liquidators, interim administrators, and insolvency experts.

To participate in panels involved in the dissolution of companies, professionals would need to obtain certification from the Institute of Financial Markets of Pakistan (IFMP) after completing a three-stage certification process comprising written and oral exams. Additionally, the SECP suggests mandatory annual professional training for these experts to maintain their qualifications.

The proposed measures also include a code of conduct for official liquidators and interim administrators to protect the interests of creditors and promote transparency. The SECP has sought public and stakeholder feedback on the proposed framework, which is available on the SECP website.