Regulator simplifies registration of insurance products

Updated 25 Mar 2020

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Most of the products submitted to the SECP by life insurance companies and family takaful operators have standardised features, terms and conditions, which are similar to their existing products.
 — Reuters/File
Most of the products submitted to the SECP by life insurance companies and family takaful operators have standardised features, terms and conditions, which are similar to their existing products. — Reuters/File

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has simplified the submission requirements for registration of a new life insurance product or registering any amendments in an existing product with the view to promote ease of doing business.

Most of the products submitted to the SECP by life insurance companies and family takaful operators have standardised features, terms and conditions, which are similar to their existing products.

With the aim to facilitate the insurance sector, SECP issued S.R.O. 234(I)/2020 to simplify the submission requirements for standardised products.

As per new circular, a life insurance company that intend to issue a new product, which is likely to be a standard product, it would require submitting very brief information.

The SECP has also reduced the turnaround time for registration of insurance products to 7 day from earlier duration of 30 days.

These relaxations are in line with SECP’s reforms to provide ease of doing business and facilitate development of life insurance sector in Pakistan.

Meanwhile, to facilitate companies and businesses in dealing with current crises of Covid-19 pandemic, the SECP has relaxed regulatory deadlines under Companies Act.

Using its powers under Section 510 of the Companies Act, 2017, the SECP has issued relaxations to all companies which are facing difficulties in timely holding the annual general meeting (AGM) for the year ended on December 31, 2019.

These companies are allowed a general extension for a period of 30 days as provided in section 132 of the Act for holding their AGMs.

Such companies can now hold their AGM for the year ended on December 31, 2019 on or before May 29, 2020.

The other relaxation includes election of directors that was due before or in at the AGM, may file ‘impediment reports’ with the concerned registrar of SECP under Section 158(2) of the Act citing the reasons for delay in holding the election of directors.

At the same time any statutory return, which is required to be filed on or after March, 24, 2020 can be filed with the concerned registrar with the delay of 30 days of occurrence of any event without any additional filing fee as no penal action shall be taken for the late filing.

Published in Dawn, March 25th, 2020