ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) now requires its approval before the appointment, renewal, or removal of the chief executive officer (CEO) of a professional clearing member. On Wednesday, the SECP issued draft amendments to the Professional Clearing Members Regulations, 2020, through S.R.O.244(I)/2025. New Process for CEO Appointment The board of directors of a professional clearing member will handle all decisions regarding the selection, appointment, and terms of the CEO. The process includes the following steps: The Board of Directors will review three candidates who meet the "fit and proper" criteria outlined in the regulations. After evaluation, the Board will recommend one candidate to the SECP for approval. The SECP will assess the nominee’s qualifications and decide whether to approve the appointment. If the SECP is not satisfied, it has the authority to reject the nomination and request the professional clearing member to propose a new candidate. Compliance Oversight In addition to the CEO, the compliance function of a professional clearing member will be overseen by a chief compliance officer who must also meet the "fit and proper" criteria. According to the SECP, the chief compliance officer must submit a detailed report every six months to both the Board of Directors and the Commission. This report should include: Issues reported during the period. Corrective actions taken. The current status of those actions. These regulations aim to enhance transparency, oversight, and accountability in the management of professional clearing members.