SEC Amends Entry Requirements for Capital Market Professionals

• CCM program, is the only pathway to obtain the Registered Investment Advisor Qualification
• Currently there are approx. 500 active Investment advisors in the Capital Market
• There is a pressing need to increase the number of Investment Advisors

In a move aimed at enhancing professional standards and increasing accessibility in the capital market industry, the Securities and Exchange Commission (SEC) has issued a Directive that provides new entry requirements and exemptions for its certification programs.

This Directive which came into effect from 1st August 2024 contains new entry requirements designed to better serve aspiring and current investment advisors by aligning educational and professional requirements with industry best practices and emerging market trends.

The SEC develops and administers professional education and Continuous Professional Development (CPD) programs as a part of Sri Lanka's capital market licensing framework.  The licensing processes is crucial to uphold high standards of professionalism and trust in the financial advisory sector, thereby protecting investors' interests and enhancing the stability of financial markets.

The SEC administers the Certificate in Capital Markets (CCM) program, which is the only pathway to obtaining the Registered Investment Advisor (RIA) Qualification and is designed to provide comprehensive education and training for professionals in Sri Lanka’s capital market. Relaxation of the entry requirements for CCM is expected to make it easier for a wider range of candidates to participate in this crucial program. Previously, candidates seeking to register for the CCM were required to hold either 3 passes for Advanced Level (A/L), a completed degree or a completed professional qualification in any discipline. The new entry criteria now recognize a broader range of academic and professional qualifications allowing more individuals to pursue the certification program.

Additionally, to accommodate various professional backgrounds and prior learning experiences, the SEC has broadened the exemption policy for CCM. Previously, the SEC only granted exemptions for candidates who had passed Level 2 of Chartered Financial Analyst. However presently, candidates who are passed finalists of Chartered Institute of Management Accountants (CIMA), Association of Chartered Certified Accountants (ACCA), Institute of Chartered Accountants of Sri Lanka (CA) and candidates who have completed a Bachelor’s or a Master’s Degree in a finance related discipline can apply for exemptions as well.

Investment Advisors at the recent CPD Program conducted by the SEC

Moreover, the eased minimum entry requirements and updated exemption policy apply to single asset class certification programs as well.

The first batch of the CCM program, featuring the revised entry requirements and exemptions, is set to begin on August 31, 2024. Comprehensive details are available on the SEC website www.sec.gov.lk. This launch represents a significant step forward in offering accessible, high-quality certification opportunities for capital markets professionals.

These revisions are designed to elevate the standards of the industry while making it more inclusive and supportive of ongoing professional growth.