Internal control: SECP issues draft Unit Linked Products Rules
The draft is aimed at introducing comprehensive regulations for unit-linked business. PHOTO: FILE
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 4th, 2014.