Investor onboarding: SECP introduces consolidated framework

Business Recorder reported that the Securities and Exchange Commission of Pakistan has rolled out a single consolidated framework for investor onboarding, designed to make onboarding and customer due diligence rules simpler and more uniform for its regulated persons. SECP officials briefed reporters in Islamabad on Wednesday, saying the aim is to widen financial inclusion, strengthen investor protection and ease business. The framework also seeks to clear up confusion created by overlapping onboarding rules for different investor groups and intermediaries.

Under the rules, SRIs may open accounts at their premises or remotely through websites, portals and mobile applications. Regulated entities, including the Centralized Gateway Portal, the Centralized KYC Organization and Asaan Connect, must set up connectivity to share customer data and documents, subject to consent. API integration is expected to allow instant UIN issuance, CDC sub-account opening and round-the-clock onboarding without manual input or white-paper signatures.

Identity documents must be verified through NADRA Verisys, MBVS or another NADRA system, with a record kept. Enhanced due diligence stays for high-risk customers, based on each SRI's customer risk profile model. For the Sahulat Sarmayakari Account, the investment cap is Rs3 million at any time and the transaction cap Rs1 million. The SECP also repealed Circular No. 6 of 2023 dated April 19, 2023.