The Securities and Exchange Commission of Sri Lanka (SEC) signed a Memorandum of Understanding (MoU) with the CFA Society Sri Lanka (CFASL) last week to promote codes and standards of best practice in the capital market.
Chairman of the SEC, Ranel Wijesinha said, “I have often stated that a productive, proactive regulator is a fundamental ingredient in a sustainable market economy. The SEC as the apex regulator of the capital market has played a key role over its 30-year period and is committed to build a robust, well regulated and attractive capital market. Towards that end, we benchmark ourselves against many jurisdictions who are members of the International Organisation of Securities Commissions (IOSCO) of which SEC Sri Lanka has been an active member for more than 15 years.
“During the latter part of 2018 and in 2019, we restructured, re-resourced, and repositioned key divisions of the SEC and enhanced processes, methodologies and timelines such that the regulatory infrastructure, strategies and people were made more proactive. In parallel, we focused on capital market development initiatives at a national, regional and global level.
“Entering into a MoU with the CFASL (the parent-body, the CFA Institute is headquartered in the USA), will further facilitate programs of investor protection and professional standards. CFA has demonstrated a commendable track record globally. CFASL is the local chapter of the CFA Institute, whose mission is to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society and has been in operation in Sri Lanka for more than 15 years,” he said.
The MoU will serve as a vehicle to enable the two institutions to work together to promote codes and standards of best practice in the Sri Lankan capital market. In addition, under the agreement both parties will also be able to collaborate on initiatives pertaining to investor rights and joint educational initiatives, such as advertisement campaigns, workshops, seminars and conferences.
Wijesinha said, “I want the MoU to catalyse new activities and be alive and operational. Both parties should develop an agenda of undertakings pertaining to research related projects, collaborative events, seminars or workshops and such other initiatives and shall work together within agreed upon timelines in pursuance of the objectives of the MoU. I have requested both parties to nominate task force leaders to implement at least one event in each quarter which will generate learning outcomes.”
President of CFASL Zaffar Jeevunjee said, “CFA Society Sri Lanka is very pleased to be able to sign this MOU with the SEC. We strongly believe that we can work together with the SEC on delivering improvements and growth of the capital market of Sri Lanka to improve market integrity, transparency as well as to encourage the adoption of the highest standards and practices within the investment industry.”