SECP launches digital onboarding

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced the digital onboarding mechanism for investors of the Asset Management Companies (AMCs), a statement said on Thursday.

In this respect, the commission has issued Circular No 35 of 2020 and placed it on the website, it added.

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 an online customer verification process for opening online accounts and ensure investors’ protection and compliance with all the applicable relevant legal and regulatory framework.

Further, the mechanism introduces digital verification for the authentication of the investor and original identification documents through virtual meeting applications (WhatsApp, Skype, etc) for online face-to-face interaction on a real-time basis, it said.

In addition, a simpler account opening process eliminates the physical signing of different forms and declarations by the investors.

Introduction of a digital onboarding mechanism reflects the SECP’s continued commitment towards digitisation, while ensuring the growth of the non-bank financial sector and capital markets, it said.