Capital market regulation reviewed for security purposes

The National Business

THE PNG Securities Commission (Secom) cannot perform functions like issuing licences under the new Capital Market Act 2015 because there are no regulations and other internal processes in place, says executive chairman Christopher Hnanguie.
Hnanguie told The National yesterday that the capital market regulations were being reviewed by development partners.
“Stakeholder consultations will commence,” he said.
“The regulations will form the basis for the development of various associated forms and guidelines.”
Hnanguie said the three capital market-related laws were:

  • Securities Commission Act 2015;
  • Capital Market Act 2015; and
  • Central Depository Act 2015, which came into force on Dec 17, 2017.

“After doing those set of regulations to implement the laws, we need to make it work,” Hnanguie said.
He said they had worked on those set of regulations and completed drafts, which were given to the Asian Development Bank to help with international good practice.
“Yes we are happy about it, but we need to ensure that those regulations reflect international good practices,” he said.
“What PNG will have is the international good practices.”
Hnanguie said that without a regulation in place, they could not call for renewal of licences or anything else.
“We are still a division of the Investment Promotion Authority.”
“Our new structure had been submitted to the Department of Personnel Management (DPM) on April 18, 2018.
“This has taken almost a year for DPM to look at this entity and approve this new structure.
“Until and unless a new structure is in place, we cannot exercise any functions like issuing licences.
“Once we issue licences, companies will be coming in to pay fees.
“Where is this money going to?
“Where is the Secom bank account? We don’t even have the regulations to issue this.”
Hnanguie said once the Secom’s new structure was approved by the DPM, they would then go to the Treasury Department to open a budget code.
“Then we can be able to open a bank account, do business and call for renewal of licenses.”