ISLAMABAD: In continuation of its efforts to expand financial inclusion and broaden investor base in capital market products, the Securities and Exchange Commission of Pakistan (SECP) has expanded the scope of Digital Onboarding Mechanism of investors to cover private pension funds, says a Press release.
Under this initiative, pension fund managers can now extend digital account opening services to individuals desirous of investing in private pension funds under the voluntary pension system (VPS), on the same lines as the mechanism already offered to investors in the stock market and mutual funds, said a statement issued on Friday.
Through digitalisation, the process of enrolling new investors has been significantly simplified, by eliminating the requirement of physical presence and submission of documents by the customers. Moreover, the process enables pension fund managers to conduct online Customer Verification through virtual platforms (WhatsApp. Skype, etc.), said the statement.
The recent measure marks another progressive step from the SECP for the promotion and development of private pension funds, the non-bank financial sector, and capital markets in Pakistan, according to the statement.
Meanwhile, the SECP has allowed Asset Management Companies (AMCs) for digital pension account opening. A Circular No. 03 of 2021 has been issued under which the SECP allowed Pension Fund Managers registered under Voluntary Pension System Rules, 2005 to digitally open individual pension accounts by complying with the requirements prescribed for digital account opening by AMCs vide circular 35, 2020 dated December 30, 2020.
Pension Fund Managers shall at all times comply with all requirements of AML Act, 2020 and AML/CFT Regulations, 2020 issued by the SECP from time to time. – TLTP