SECP amends NBFC Regulations to adapt to new technologies

May 17, 2023 (MLN): To promote the development of the digital financial environment and financial inclusion, the Securities and Exchange Commission of Pakistan (SECP) has revised the Non-Banking Finance Companies and Notified Entities Regulations, 2008 , said a press release issued today. 

The SECP has carried out a thorough analysis of current regulations to remove redundancies and exercised broad public consultation to propose amendments to the regulations, it added. 

The focus was to address market requirements, provide ease of doing business through digitalization, and protect the interests of NBFCs' customers.

For the introduction of digital fund management, lending platforms, and trustee services, enabling provisions have been made. These provisions are designed to make it easier for digital technologies to be used in order to increase accessibility, efficacy, and cost-effectiveness, it further stated. 

"Amendments have been introduced to ensure AMCs will inform unitholders of account activity and keep client information confidential, as well as a time frame for dividend distributions and provisions for borrower protection for lending NBFCs have been introduced," the press statement reads. 

Investment Advisors are allowed to offer portfolio management services to any investor but must formulate a risk management policy and contingency plan approved by their Board of Directors for better risk management, accountability, board oversight, and client protection.

Copyright Mettis Link News