SCPNG eyes reforms

 By GYNNIE KERO

THE Securities Commission of Papua New Guinea (SCPNG) is embarking on major reforms to update its legislations and broaden the capital market due, to interests from local and foreign investors.

The commission is currently a division within the Investment Promotion Authority and regulates the capital markets in the country.

The banking industry is the other aspect of the financial market under which the Central Bank regulates the banking, savings and loan societies, superannuation funds and related industry, including life insurance. 

While SCPNG regulates the capital markets, both equity and debts securities including private bonds, swaps, subordinate notes among others. 

Describing the securities market as “very narrow”, chairman Alex Tongayu said the commission had circulated a consultation paper for stakeholders to provide feedback on the current market.

He said: “The legislations that we (Securities) have is outdated.

“We are embarking on a very major reform that will change the status quo of the market and the industry as well. We see that the unit trust is an industry that is attracting a lot of people, we have investments from foreigners as well as Papua New Guineans.”

Tongayu said the commission had approved a third trust for the mining and petroleum sector while the fourth was under review.

“We see that there is an interest in the industry (Capital market) so the review that we are doing will cover every aspect of the market in terms of regulatory as well as the market itself. At the moment we have only few players and the market is closed.

“We are looking at three new bills we are working on to be presented to parliament by the third quarter.”