ISLAMABAD: The SECP has proposed amendments in the Non-Banking Finance Companies and Notified Entities Regulations, 2008 to facilitate adoption of new technologies, improve ease of doing business and enhance investor protection. The draft amendments have been placed on SECP’s website for public consultation.
The key proposed amendments include provisions to enable the launch of digital fund management, lending, and trustee services. Provisions also include to enable Asset Management Companies (AMCs) to promptly notify unitholders of account activity and maintain confidentiality of client information. Redundant and superfluous provisions were also removed.
Additionally, the 100% equity cap on total unsecured exposure has been eliminated. Lending NBFCs that have recently received licenses have been given a year to meet the minimum investment requirement in their primary business. Investment Advisors can now provide portfolio management services to all investors in accordance with global best practices, as are countries like Canada, India, and Malaysia. The deadline for submitting CEO applications has been increased from 10 to 30 days.
Furthermore, enabling provisions have been introduced to allow certain financial institutions to distribute units of CIS/VPS without obtaining a license, subject to compliance with S&FA Regulations.
The proposed amendments draft can be accessed at SECP website at https://www.secp.gov.pk/document/s-r-o-423i-2023-amendments-in-nbfc-regulations-2008/?wpdmdl=47428&refresh=642d41213e1361680687393. SECP invites feedback from stakeholders on the proposed amendments, which can be submitted at following email address firstname.lastname@example.org.