Sri Lanka markets regulator needs more enforcement power: IOSCO
ECONOMYNEXT – The enforcement powers of Sri Lanka’s markets regulator, the Securities and Exchange Commission (SEC), should be strengthened in order to build investor confidence, the global standard setter for securities regulation has recommended.
“Augmenting the SEC’s powers to remediate and enforce breaches of the Act, regulations, rules and directives through civil and administrative means . . . are seen as being of particularly high priority,” the Board of the International Organization of Securities Commissions (IOSCO) said.
The recommendation was one of several made by the Board of the IOSCO in its Assessment Committee’s Country Review of Sri Lanka, released by the SEC.
IOSCO said the regulator was already in the process of implementing many of its recommendations through planned reforms, including a new SEC law.
“The enforcement powers of Sri Lankan authorities are limited,” the IOSCO review said, noting that the SEC lacks the power to take civil action.
“Criminal penalties are light by international standards and are not sufficiently dissuasive.”
(COLOMBO, July 06, 2017)