Regulatory Alerts2019-11-04
Added · Updated
Amendments to the Clearing Houses (Licensing and Operations) Regulations, 2016
The Securities and Exchange Commission of Pakistan amends the Clearing Houses (Licensing and Operations) Regulations, 2016, to permit clearing houses to outsource compliance functions to securities exchanges with prior Commission approval. New Regulation 11A requires a service level agreement approved by the clearing house's board of directors and mandates that the clearing house remains fully liable and accountable for these outsourced functions. The amendments also insert specific phrases into Regulations 5 and 11 to clarify outsourcing permissions and delete the phrase "and compliance functions" from Regulation 14 while adding a new sub-regulation allowing such outsourcing subject to Regulation 11A conditions.
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