IMF advises the SEC to step up its game 

The IMF has advised the Securities and Exchange Commission (SEC) of Sri Lanka to streamline its enforcement programme and improve its overall effectiveness.

A number of cases related to trading activity were prematurely closed in the past without thorough investigation, which is believed to have negatively impacted the commission’s reputation.

On the IMF’s recommendation, these cases have been reopened, and the SEC is working towards adopting a more transparent process with regards to prioritising cases and publishing results.

The SEC’s publication policy specifies the enforcement action on its website along with the time period of the particular action.

However, it is considered essential that a record of all enforcement results is permanently available on the commission’s website, assuring transparency.

The ultimate goal is to regain public confidence by ethically bringing to light high profile criminal actions and trading irregularities.

It is imperative that the SEC handles its responsibilities in a fair and consistent manner.

The IMF has also suggested the adoption of metrics to measure the effectiveness of the enforcement programme, which has been lacking in the past, and is set to have a major impact in improving the strength and effectiveness of the commission.

These statistics – such as the number of investigations, cases filed, penalties imposed and licences revoked – are expected to go a long way.

The SEC is said to be open to feedback and suggestions from stakeholders, and plans to open its annual conference to further discuss ways of achieving credibility.