The Securities and Exchange Commission of Pakistan (SECP) has mandated that the appointment, renewal, and termination of the chief executive officer (CEO) of professional clearing members require prior approval from the SECP.

The SECP issued an S.R.O.244(I)/2025 to release draft amendments to the Professional Clearing Members Regulations, 2020.

The board of directors of a professional clearing member will determine the appointment procedures, terms, and conditions for the CEO's selection.

The process for appointing a CEO includes:

• The Board will shortlist three candidates meeting the fit and proper criteria and recommend one for SECP approval.

• If the SECP deems the candidate suitable, they will grant approval. If not, the matter will be referred back to the professional clearing member for an alternative candidate.

• Additionally, professional clearing members must have a chief compliance officer, who will oversee compliance functions and submit semi-annual reports to the Board and the SECP.

These amendments aim to ensure that the selection of CEOs is conducted with proper oversight and due diligence, thereby enhancing transparency and accountability within the industry.