For the first time in its history, the Securities and Exchange Commission of Sri Lanka (SEC), the apex regulator of Sri Lanka’s capital market, announced that it will hold a roundtable discussion with auditors and other capital market stakeholders. The purpose of the forum is to emphasise SEC’s concerns about and expectations of feeders and providers such as auditors and other stakeholders to the regulatory functions of the SEC. “During the preceding 12 months, the Commission which was reconstituted in mid-2018 introduced a series of measures to enhance the productivity, proactivity, and promptness of apex-level securities-related regulation and capital market development,” SEC Chairman Ranel Wijesinha stated in a letter of invitation addressed to multidisciplinary institutions and professionals recently. Wijesinha stated that measures have been taken and are ongoing with regard to the functions of market monitoring and surveillance, supervision of brokers, other market intermediaries, margin providers, investment managers, underwriters, credit rating agencies, unit trust management companies, and unit trust funds; monitoring and interventions connected with financial statement reviews and disclosures that the listed entities are require to make. “We have also progressively strengthened the processes, procedures, and capacity of the Investigations Division and of other divisions such as Legal and Enforcement, Litigation, Surveillance and External Relations (now renamed the Office of Investor Education and Advocacy),” he added. While a series of measures are ongoing at the level of the SEC Secretariat, the SEC noted it is important to engage key external service providers, such as auditors, investment advisors, investment banks, valuers, appraisers, actuaries, credit rating agencies, and such other direct and indirect feeders and providers to its regulatory oversight and monitoring. The SEC stated that a roundtable discussion with external auditors and all other key stakeholders would not only help service providers gain an insight into SEC’s regulatory challenges and expectations, but also the expectations external auditors, investment advisors, and banks will have of third-party service providers such as valuers, appraisers, actuaries, and others. The SEC will be sharing case studies connected with audited financial statements pertaining to listed companies and among the invitees will be representatives of the Central Bank of Sri Lanka, Sri Lanka Accounting and Auditing Standards Monitoring Board, Insurance Regulatory Commission of Sri Lanka, Colombo Stock Exchange, Institute of Chartered Accountants of Sri Lanka, Sri Lanka Institute of Directors, Chartered Financial Analysts Society of Sri Lanka, Auditors of Listed Entities, World Bank, Asian Development Bank, representatives of the Office of the Attorney General, representatives of the Office of the Auditor General, Institute of Valuers of Sri Lanka, Royal Institute of Chartered Surveyors of Sri Lanka, investment bankers, rating agencies, actuaries, and commercial and development banks. The forum titled “Round Table Discussion with External Auditors and all other key stakeholders”, will be held on Thursday, 31 October from 2.30 p.m. to 6.30 p.m. at Hilton Colombo. Photo Saman Abesiriwardana