SECP allows digital accounts opening for mutual fund investors

As part of its efforts to usher in a new era of smart investments, the Securities and Exchange Commission of Pakistan (SECP) has introduced the digital onboarding mechanism for investors of the Asset Management Companies (AMCs). In this respect, SECP has issued Circular No 35 of 2020 and placed on its website, SECP said on Friday.

“The Digital Onboarding mechanism offers investors not only a seamless account opening process for investments in mutual funds but also eliminates the requirement of physical presence and submission of physical documents. The AMCs are now allowed to conduct online Customer Verification process for opening of online accounts to ensure investor protection and compliance with all the applicable relevant legal and regulatory framework.

“Furthermore, the mechanism introduces digital verification for authentication of the investor and original identification documents through virtual meeting application (WhatsApp, Skype, etc.) for online face to face interaction on real time basis. In addition, a simpler account opening process eliminates the physical signing of different forms and declarations by the investors.

“Introduction of Digital Onboarding Mechanism reflects the SECP’s continued commitment towards digitization, while ensuring growth of the non-bank financial sector and capital markets. The virtual onboarding of investors in Pakistan is expected to boost innovation and competition in the mutual fund industry encouraging the use of financial technology and fostering financial inclusion. SECP believes that as the industry transitions towards the digitization of financial services, digital onboarding will soon become the norm in the industry.”

Trends Stock

Trends Stock provides information about the latest and upcoming trends in the fields of technology, business, education and sports mainly in Pakistan. To keep pace with this fast growing age of development, one can easily build an opinion about the newest trends by scrolling through relevant sections of the website. The first hand reliable data eases the individual to analyze the cutting edge drifts in the related arenas while making any decision.

Previous Post
Next Post

Leave a Reply

Your email address will not be published. Required fields are marked *