December 28, 2018: The Securities and Exchange Commission of Pakistan (SECP) has issued guidelines for grievance redress system in Non-Bank Microfinance Companies (NBMFCs) to protect the interests of clients.
Accordingly, the NBMFCs are required to put in place a complaint handling policy and detailed procedures to deal with clients’ complaints. Furthermore, the NBMFC shall designate a key executive to look after the complaint handling mechanism. NBMFCs should also ensure that their complaint handling mechanism is visible and easily accessible to all customers.
The guidelines have been issued through Circular No. 24 of 2018 dated December 27, 2018, to facilitate and guide the NBMFCs for effective and efficient resolution of clients’ complaints. Further, it is hoped that these will not only increase customer satisfaction but will also reduce operational and reputational risk of the NBMFC.
In addition, the SECP has also specified certain requirements for branches of NBMFCs through Circular No. 23 of 2018 dated December 27, 2018. Accordingly, the NBMFC are required to display certificate of incorporation and valid license issued by the SECP to conduct the business of microfinancing at appropriate place in the branch offices. Moreover, NBMFCs are required to have properly trained staff, security arrangements for the safety of documents and staff, proper customer support for filling up of applications and product information at the branches.
