ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), to safeguard the interest of investors and prevent miss-selling, has proposed amendments to the Non-Banking Finance Companies and Notified Entities Regulations, 2008. The amendments have been made available on the SECP website for public consultation.

The proposed amendments focus on training, disciplining and monitoring of sales force of Non-Banking Finance companies (NBFCs). Additionally, the criteria specified for fitness and propriety of directors and chief executives of NBFCs has been further augmented.

Further, the proposed amendments require Asset Management Companies (AMCs) to formulate and implement a policy approved by their Board of Directors for continued training, accountability and capacity building of their sales force for accurate analysis and assessment of suitability of product for every individual investor. AMCs are also required to ensure regular review of the suitability assessment made at the time of investment and quarterly reporting of such review to the management or Board Committee for ensuring effectiveness of the policy.