Internal control: SECP issues draft Unit Linked Products Rules

KARACHI:

The Securities and Exchange Commission of Pakistan (SECP) has issued draft Unit Linked Products and Funds Rules, 2014, to elicit the public opinion, a statement said.

It said the draft is aimed at introducing comprehensive regulations for unit-linked business to ensure the protection of policyholders’ interest as well as strengthening insurers’ internal controls over investment policy and processes.

The new rules have addressed broad product features from a regulatory perspective, such as minimum financial protection, premium indexation and maximum aggregate commission on unit-linked business.

However, the primary focus of these rules has been on addressing the investment governance process of the unit-linked funds, net asset valuation methodology and the disclosure of investment risk to the insurance policyholders.

Published in The Express Tribune, February 4^th, 2014.

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