To facilitate seamless onboarding of investors, the Securities and Exchange Commission of Pakistan (SECP) has allowed Asset Management Companies (AMCs) and Pension Fund Managers (PFMs) to conduct investor identity verification.
According to the official release, AMCs and PFMs could verify either on their own or by obtaining identification documents from the onboarding platform through which micro-saving customer is being on-boarded.
SECP stated that this step will not only support AMCs and PFMs in smooth integration with potential branchless banking operators and Electronic Money Institutions (EMIs) but will also assist in complying with applicable requirements of the AML/ CFT regulatory framework.
The new regulation is part of SECP’s efforts to usher in a new era of smart investing and to ensure the provision of a seamless onboarding experience for mutual fund investors on-boarded through branchless banking and EMI platforms to open Sehl Sarmayakari Accounts.
SECP had earlier introduced Sehl Sarmayakari Accounts to promote a micro-savings culture where a customer can be seamlessly on-boarded through digital wallets/ branchless banking operators without providing any additional information or document to the AMCs.
The regulator stated that the introduction of Sehl Sarmayakari Accounts reflects its continued commitment to supporting digitalization and providing a conducive investment climate for the growth of the non-bank financial sector and capital markets. It also stated that as the industry transitions towards the digitization of financial services, digital onboarding will soon become the norm in the industry.
