SECP Gives Major Powers to Officers of the Insurance Division - Android

The Securities and Exchange Commission of Pakistan (SECP) has delegated major powers and functions to the Commissioner (Insurance) and the… Read More

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The Securities and Exchange Commission of Pakistan (SECP) has delegated major powers and functions to the Commissioner (Insurance) and the officers of the Insurance Division to deal with insurance companies, insurance brokers, insurance surveyors, and third-party administrators.

Now the Commissioner (Insurance) and the officers of the Insurance Division have been given powers to approve the appointment of chief executive officer, principal officer, or director of an insurer under a notification issued on Wednesday.

Through an S.R.O. 508 (I)/2021 issued by the SECP, the regulator has considerably enhanced the powers of the Commissioner (Insurance) and the officers of the Insurance Division.

Under the notification, the SECP in supersession of its earlier notifications S.R.O. 744(I)/2020 dated August 17, 2020, and S.R.O. 20(I)/2021 dated January 11, 2021, subject to such conditions and limitations as it may from time to time impose, hereby delegates the certain powers and functions of the Commission under the primary and secondary legislation to its Commissioner (Insurance) and the officers of the Insurance Division, to the extent of insurance companies, insurance brokers, insurance surveyors, and third party administrators only, whether listed or not.

According to the notification, Commissioner (Market Development Policy and Regulation Department – Insurance Division) has been empowered to issue directives, circulars and guidelines.

Commissioner (Market Development Policy and Regulation Department – Insurance Division) would have the authority to sanction the issue of shares at discount on such terms and conditions as he deems fit and to allow extension in time to issue shares at discount.

He would have the authority to approve the appointment of chief executive officer, principal officer or director of an insurer.

He can grant approval for Employee Stock Option Scheme in accordance with the proviso to section 83 (1)(a)(iv), for public companies and allow a company to issue further share capital to any person for cash or for consideration other than cash.

Commissioner (Market Development Policy and Regulation Department – Insurance Division) would also have the authority to grant exemption from provisions relating to consolidated financial statements.

Executive Director/Director/ Head of Department (Market Development Policy and Regulation Department – Insurance Division) would be empowered to exercise certain powers including extending the period of book closure mentioned in sub-section (1) for a further period of fifteen days.

Commissioner (Market Development Policy and Regulation Department – Insurance Division) would be empowered to issue recommendation letter for issuance of US$ denominated policies by the local insurance company and grant exemptions from the requirements of any Circular issued by the Commission on the case to case basis.

In case of vacancy or unavailability of Executive Director/Director/Head of Department (Market Development Policy and Regulation Department – Insurance Division), the powers and functions delegated to him/her through this notification shall stand delegated to the Commissioner (Market Development Policy and Regulation Department – Insurance Division).

This notification shall not affect anything done, the order made, notification issued, show cause issued, circular made, proceeding commenced, the penalty imposed and/or collected, sanction granted, approval made, fee directed or collected, direction given, investigation, inspection or inquiry conducted or any other action taken or done under or in pursuance of the above referred superseded notifications, shall be valid and under lawful authority.

Any pending proceeding under the superseded notifications shall stand transferred to the delegated authority, as provided in this notification forthwith, who shall proceed with the matter as it stands prior to coming into effect of this notification, SECP added.

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