Cambodia: Risk based Supervision in Capital Markets

This TA mission was conducted at the request of SERC to implement risk-based supervision (RBS) for Cambodian securities markets. The mission consisted of a diagnostic assessment of the market, risks, and the supervisory framework, and a high-level training on the topic. Key findings include a small but growing securities market, limited primary and secondary market, significant investor confidence concerns amplified by scams and low financial literacy, and a high concentration risk. SERC’s current supervision approach is compliance-oriented and based on comprehensive (but manual) reporting and detailed (but compliance-oriented) inspection manuals. The mission recommended specific steps that will enable SERC to undertake a phased transition to RBS, aimed at enhancing the quality of supervision and optimizing supervisory resources