SECP warns unlicensed online financial services to stop activities without approval

January 18, 2019: The Securities and Exchange Commission of Pakistan (SECP) has warned the unlicensed financial services to stop providing nano and micro credit without having legal mandate with a valid license from the SECP.

"Several unregistered and unlicensed entities engaged in such financing activities through websites are warned to immediately stop carrying on such businesses.  and websites are directly involved in provision of nano and micro credit," a notification issued by the Commission here on Friday said.

Those who continue to operate without proper license may be referred to law enforcement agencies for appropriate action under the applicable laws and prevention of electronic crimes act 2016, the Commission warned.

Moreover, the general public is advised in its own interest to be prudent and and avoid any business transaction with such entities through websites.

Anyone who despite this warning engages in a business transaction with such unlicensed online financial services entities does so at his or her own risk and SECP shall not be responsible for any loss incurred by such person thereby, the notification added.

(APP)