Show cause notice: SECP acts against Takaful operators

Regulatory body takes conventional and Islamic insurers to task.

Our Correspondent July 05, 2013


The Securities and Exchange Commission of Pakistan (SECP) has passed nine orders against insurance companies, including three takaful operators for compromising the principles of Islamic Shariah.

According to a statement issued here today, the orders were passed by the Insurance Division of the apex regulator in June 2013.

The Insurance Division passed four orders against three conventional insurers for contravening various provisions of law, while two orders were passed in respect of the appeals filed against the Orders of the Federal Insurance Ombudsman.

The Insurance Division has also issued a show cause notice to a conventional insurer for not complying with the mandatory requirement relating to maintenance of statutory deposit with the State Bank of Pakistan.

In addition to this, the SECP has also issued a direction for convening the annual general meeting, and issued a warning to a conventional insurer on a matter involving non-compliance.

Moreover, the Pakistan Insurance Institute, in active coordination with the Insurance Division of SECP, has conducted examination for freshly authorised surveying officers during the month of May 2013.  The results were announced during the last week of June 2013.

Published in The Express Tribune, July 6th, 2013.

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