SEC and CFA Society Sri Lanka continue their collaborative efforts in capital markets policy formulation

Sri Lanka Securities and Exchange Commission Chairman Faizal Salieh

The 11th annual CFA Society Sri Lanka Capital Market Awards is scheduled to be held on Tuesday, 18 June, at the Oak Room, Cinnamon Grand, Colombo. A signature event in the CFA Society Sri Lanka calendar since its inception in 2012, the CFA Society Sri Lanka Capital Market Awards looks to provide insights from stakeholders including the industry and capital market regulators – key proponents of the awards, which recognise and reward professionals who have established benchmarks for the advancement of domestic capital market participants.

Over the past 20 years, the Securities and Exchange Commission of Sri Lanka (SEC) has been a steadfast supporter of the CFA Society Sri Lanka Capital Market Awards, given its contribution to recognising talent in the capital markets industry and continuously uplifting industry standards. 

Chairman of the SEC Faizal Salieh notes that the rigorous assessment process set forth by the CFA Society Sri Lanka Capital Market Awards, including the post-awards feedback to all participants, has helped improve investment research industry standards in the country over the years. 

Highlighting the benefit of the CFA Society Sri Lanka Capital Market Awards to wider stakeholders such as regulators, brokers and investors, Salieh notes: “The awards program fosters, acknowledges and rewards professionals who establish benchmarks for excellence in capital markets research. By doing so, it inspires industry professionals to maintain high research standards, thereby enabling investors to make informed, research-driven investment decisions. Furthermore, the improvement in research output has enabled investors to make more informed investment decisions and has bolstered investor confidence in the market.”

CFA Society Sri Lanka also works together with the SEC by maintaining a focus on policy matters, most recently collaborating by providing feedback on the updated Corporate Governance Regulations for entities listed on the Colombo Stock Exchange (CSE) published by the SEC in September 2023. 

Salieh comments: “Over the years, the SEC – as the regulator of the local capital markets – has worked in close collaboration with CFA Society Sri Lanka, which includes providing valuable inputs in terms of policy formulation relating to listing rules and corporate governance for entities listed on the CSE, real estate investment trusts (REITs), the Asset Manager Code and Global Investment Performance Standards (GIPS).” 

“We anticipate that analysts will take the updated Corporate Governance Regulations into consideration as part of their analysis going forward, given that it is deemed to be an essential component of attracting foreign investors as well,” he adds.

The SEC Chairman extends his best wishes to participants of the CFA Society Sri Lanka Capital Market Awards and CFA Society Sri Lanka, for continuing to uphold industry standards for an 11th year running.

Looking ahead, the SEC aims to focus on selected key areas and expects CFA Society Sri Lanka’s participation in rendering its expertise as in the years gone by. This includes the facilitation of a regulatory framework to introduce trading of carbon credit derivatives through a derivatives exchange, and also a benchmark for companies demonstrating exemplary environmental, social and governance (ESG) practices that is set to be established via the introduction of an ESG index at the CSE. 

To this end, the SEC is heartened by the CFA Society Sri Lanka Capital Market Awards introducing a Best ESG Reporting Award for listed entities, encouraging listed entities to improve their focus on ESG-related matters in their operations. 

CFA Institute is the global association of investment professionals that sets the standard for professional excellence and credentials with over 190,000 professionals in 164 markets. Founded in 2001, the CFA Society of Sri Lanka is a not-for-profit organisation supporting the professional development and advancement of CFA charter holders and candidates in Sri Lanka. Its membership of over 250 members consists of CEOs, CFOs, portfolio managers, equity analysts, banking professionals, investment advisors and other senior-ranking financial practitioners, and over 300 candidates, mainly in the financial sector.