SECP approves establishment of Corporate Intelligence Unit

Business Recorder reported that the SECP has given the green light to a new Corporate Intelligence Unit, or CIU, designed to spot registered firms that could be running Ponzi or pyramid schemes. The unit will also look for companies that take deposits or extend loans without a licence, as well as those working outside what their approved objectives allow.

Monitoring will draw on open public material such as news stories, social media posts and online advertisements, with the aim of catching likely breaches before any complaint is lodged. Once a lead is verified, it will be forwarded to the appropriate SECP unit, which can open an inquiry or take enforcement steps. Information may also reach the FIA, NCCIA, State Bank of Pakistan and NAB when that is suitable.

SECP Chairman Dr Kabir said the body would tighten risk-based oversight by converting publicly available data into verified regulatory leads. The CIU will sit under the chairman's Secretariat, created under Section 20 of the SECP Act, 1997, and will be led by a Director or Additional Director supported by two officers.