Institute of Capital Markets (ICM)

Introduction and Setting-up

Earlier in 2006, The Center for International Private Enterprise (CIPE) had
comprehensive study on capital markets in Pakistan and proposed an
institute for the development of human capital through certification and
training. This study further had been implemented through Asian
Development Bank (ADB) by giving a loan to Securities and Exchange
Commission of Pakistan (SECP) for the development program called Second
Generation of Capital Market Reform Program. One the loan the policy
actions supported under the Program was to establish an ongoing private
sector initiative to establish the Securities Institute of Pakistan (SIP). Later
called, Institute of Capital Markets (ICM) had been established on 21 st August
2008, to introduce professional certification regime in Pakistan with an
objective to enhance the technical and ethical standards of capital market
and insurance professionals of the Pakistan. It has been formed as a not for
profit company as public sector entity by SECP having majority of sharing
holding along with key market players Karachi Stock Exchange (KSE) now
Pakistan Stock Exchange, Lahore Stock Exchange (LSE), Islamabad Stock
Exchange (ISE), Pakistan Mercantile Exchange (PMEX), Central Depository
Company (CDC), National Clearing Company of Pakistan (NCCPL), Mutual
Funds Association of Pakistan (MUFAP), CFA Society of Pakistan, and Institute
of Cost and Management Accountants of Pakistan (ICMAP).
ICM had been mandated to: (i) certify and train different segments of the
capital market & insurance industry and develop skilled professionals who
have full knowledge of legal and regulatory framework, technical and ethical
standards and investor rights, (ii) provide platform for research and
development, and (ii) provide consultancy services on matters pertaining to
capital markets.
Performance History
ICM started its operations in May 2009 with shareholders capital of 19 million
irrespective of proposed seed capital of 180 million in 2006. SECP though
initially on October 30, 2009 mandated two certification on two (2) persons
or twenty (20) percent of the sales staff of equity brokerage houses and
mutual fund sales staff though circular no. 34 and 35 respectively. These
circulars had limited scope and less target market of approximately 2,000
professionals working in the capital market, as earlier envisioned of 8,000
capital markets professionals. At that time ICM had one (01) CEO and four
(04) Junior level staff members to run the affairs of the ICM, with a Board that
has 11 members excluding CEO.

ICM faced significant losses during the period from 2009-2012 totaling aboot
19 million in its first three years. As a result in 2012 a 100% right issue was
announced which was fully subscribed (majority of it was taken up by SECP.
After which a new CEO was appointed, and in the meantime ICM had been
given 380,000 USD World Bank capacity building grant. The grant was
utilized in majority of the capacity building areas including the development
of 12 new certification program for capital market, along with four Insurance
certifications. This Grant was closed on June 30 2014. However, in early
2014, due to significant and constant drain on share capital resulting from
reduced revenue from core functions, the management of the institute was
once again changed with the resignation of 2012 appointed CEO Mr. Javed
Hassan.
Launching of new Certification and new Mandate
In July 2015, the board has appointed Mr. Muhammad Ali as CEO of the ailing
institute with a commitment to turn around the institute as the Auditors had
raised the going concern observation on the institutes accounts. ICM at this
stage launched new certification as earlier developed, totaling of 18
(eighteen) certification. ICM further diversified from just certification to
adding training and workshops. In a year time, ICM was able to generate
positive cash flow first time after 6 years of its establishment. ICM requested
SECP to expand the mandate as earlier agreed, which finally approved in
April 2015 and SECP issued circular no. 09, 10, 11, and 12, in April 2015,
additionally mandating two certification namely i) ICM Fundamentals of
Capital Markets and ii) ICM Pakistan Markets and Regulation Certification in
addition to increasing the mandated to 100 percent of earlier mandated
certifications.
ICM current status and Snap shot of activities performed
Being a not-for-profit organization representing more than 2,750
registrations around the country, ICM is committed to be a champion for
ethical behavior in capital and insurance markets and a respected source of
knowledge in the local financial community.
The objective is to provide participants with essential knowledge in finance
and investment field, including concepts covered in the ICM Programmes,
using recent and relevant examples, and equip journalists with a better
understanding of the financial tools and terminology.
The Institute is helping to develop a pool of trained and certified
professionals, skilled not only to deal in conventional instruments but also to
develop and trade new and complex capital market products like options,
index futures, and Exchange Traded Funds, and commodity futures,
insurance and Takaful products.

Pursuant to the objective of promoting high ethical standards, enhanced

competency of the industry professionals and protection of consumers, the
Institute of Capital Markets (ICM) had launched its first set of s certification i)
Stock Broker Certification and ii) Mutual Fund Distributors Certification in
October 2009; furthermore, ICM also offers the following certification
programs:

Complete List of Certifications/Courses offered:

Certifications Offered
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

Stock Brokers Certification

Mutual Fund Distributors Certification
Pakistan Markets & Regulation Certification
Capital Market Fundamentals Certification
Independent Financial Advisers Certification
Compliance Officer Certification
Securities Clearing and Settlement Operations Certification
Analysts Certification Programme
Financial Derivatives Fundamentals Certification
Islamic Finance Certification
Family Takaful Agents Training/Certification
General Takaful Agents Training/Certification
Commodities And Futures Certification
Capital Budgeting and Corporate Finance Certification
Investment Banking Certification
Risk Management Certification
Non-Life Insurance Agents Foundation Course
Life Insurance Agents Foundation Course

ICM HIGHLIGHTS: 7 years journey

International
o ICM had partnerships and collaborations with CFA Institute USA
and Chartered Institute of Securities and Investments UK.
o ICM is also in sourcing contact with Securities Industry
Development Corporation (SIDC) Malaysia for developing
programs on Anti Money Laundering (AML).
o ICM had also MoU with SIDSCO Iran for sharing and working
together Islamic Finance areas.
st
1 in Pakistan

o First institution in Pakistan which had conducted several outreach

activities for financial literacy of general investors, special
financial literacy program for journalists with help of CFA Institute
USA.
o ICM has also conducted training of trainer sessions for creating
pool of trainers for capital market education.
o ICM had also conducted first time in Pakistan, workshop on the
topic of Innovative Product Development in Micro insurance.
These Workshop was being organized in collaboration with the
RFPI Asia, an implementation arm of the German Development
Cooperation (GIZ), working for the development and promotion
of micro insurance in Asia.
o ICM had also conducted workshop on the topic of Pathways
towards greater impact: Improving your micro insurance
offering. The Workshop was organized in collaboration with the
International Labor Organization (ILO)s Micro insurance
Innovation Facility based in Geneva, Switzerland.
o ICM is the institute that had introduced the online Computer
Based Testing (CBT) of the its examination with partnership of
National Testing Service (NTS)
Nationwide outreach
o Online examinations conducted in Karachi, Lahore and Islamabad
simultaneously.
o ICM outreach in terms of its candidates geographic location had
been expended to 25 cities.
o ICM has made arrangements for conducting Examination
throughout the country.
Name change
o Keeping in view the expanded scope i.e. offering certifications to
insurance industry the institute name was changed to Institute
of Financial Markets of Pakistan (IFMP). The name would be
formally announced once all the regulatory approvals are
obtained.