- SECP has allowed AMCs and PFMs to conduct investor identity verification.
- The new regulation is part of SECP’s efforts to usher in a new era of smart investing.
- Customers can now be seamlessly on-boarded through digital wallets and branchless banking operators.
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has allowed Asset Management Companies (AMCs) and Pension Fund Managers (PFMs) to conduct investor identity verification to facilitate seamless onboarding of investors, a statement said.
They may do so either on their own, or by obtaining identification documents from the onboarding platform through which a micro-saving customer is being on-boarded, it added.
This development will not only support AMCs and PFMs in smooth integration with potential branchless banking operators and Electronic Money Institutions (EMI), but will also assist in complying with applicable requirements of anti-money laundering/combating the financing of terrorism regulatory framework.
The new regulation is part of the SECP’s efforts to usher in a new era of smart investing and to ensure provision of seamless onboarding experience for mutual fund investors, on-boarded through branchless banking and EMI platforms to open Sehl Sarmayakari Accounts.
SECP introduced Sehl Sarmayakari Accounts to promote micro-savings culture where a customer can be seamlessly on-boarded through digital wallets and branchless banking operators without providing any additional information or document to the AMCs.
This reflects the SECP’s continued commitment to support digitalisation and providing a conductive investment climate for growth of non-bank financial sector and capital markets.
The SECP is of the view that as the industry transitions towards the digitalisation of financial services, digital onboarding will soon become the norm in the industry.
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