SECP, PTA unite for safer digital ecosystem

Cyber-security framework on cards to tackle illegal online predatory lending apps

ISLAMABAD:

The Securities and Exchange Commission of Pakistan (SECP) has decided to introduce a cyber-security framework not only to prevent and take action against illegal online predatory lending apps but also in the context of increasing digitalisation in the corporate and financial sectors.

According to a statement, SECP Chairman Akif Saeed held a meeting with PTA Chairman Major General (retd) Hafeezur Rehman aimed at fostering effective collaboration and exploring areas of mutual interest between the two institutions.

During the high-level meeting, which saw constructive discussions and an exchange of views on several key areas of mutual interest, both officials agreed to enhance collaboration to make the country’s digital/cyber landscape more secure.

SECP Commissioner Mujtaba Lodhi and Head of Specialised Companies Division Khalida Habib also attended the meeting.

Recognising the significance of joint efforts, it was agreed that both sides will formalise their collaboration through the signing of a Memorandum of Understanding (MoU) which will lay a foundation for future collaborative initiatives, strategically aimed at fortifying the regulatory framework and effectively dealing with issue falling within their respective regulatory space.

Specific to illegal lending apps it was agreed to set up a joint monitoring and reporting mechanism for ensuring appropriate and timely action.

The SECP chairman apprised his counterpart about the SECP’s framework for digital lending apps, and the envisioned role of cyber security auditors to certify the confidentiality and security requirements of digital apps.

The PTA chairman was informed that the SECP publishes a Whitelist on its website for validating the legal status of digital lending apps operating in Pakistan. The PTA chairman lauded the SECP’s comprehensive regulatory framework and highlighted the need and importance of data localisation initiatives.

Published in The Express Tribune, July 23^rd, 2023.