December 27, 2024 (MLN): The State Bank of Pakistan (SBP) has issued a consolidated Regulatory Framework for Exchange Companies (RFEC) to enhance governance and streamline regulatory oversight for the sector, according to the circular issued to the Chief Executives of all Exchange Companies (ECs) today.
This new framework will replace the existing Exchange Companies Manual (ECM) and aims to provide a comprehensive guideline for the operations of ECs.
Developed after a thorough review of current regulatory instructions, the RFEC outlines updates to corporate governance structures, internal controls, IT system requirements, and supervisory mechanisms. It also consolidates reporting obligations into a single, unified source of guidance for ECs.
The new framework will become effective on January 1, 2025, giving ECs sufficient time to adapt.
The SBP has directed exchange companies to align their policies, procedures, and systems with the updated regulations by June 30, 2025, ensuring full compliance.
