SECP facilitates: State Life Insurance, CDC ink agreement

Deal will help develop information sharing solution for the former.

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has facilitated the signing of an agreement between State Life Insurance Corporation (SLIC) and the Central Depository Company of Pakistan (CDC) for the development of a centralised information-sharing solution for the life insurance industry.

SLIC Chairperson Nargis Ghaloo and CDC CEO Muhammad Hanif Jakhura signed the agreement in a ceremony chaired by SECP Chairman Zafar Hijazi.

The inclusion of SLIC into the information-sharing solution will greatly enrich the database and reduce the systematic risk in the insurance sector.

Meanwhile, the SECP has proposed changes in the Non-Banking Finance Companies and in the Notified Entities Regulations, 2008, a press release said on Thursday.

This has been done to conform to the recommendations of the International Organization of Securities Commission (IOSCO), it added.

The draft changes are in addition to the ones already placed on the website of the SECP to seek public comments. The proposed changes require fund managers to devise mechanism to avoid, eliminate, manage and fully disclose the misalignment of incentives through its compensation policies in order to protect the interest of investors.

Changes have also been proposed in the valuation methodology of equity securities to ensure price consistency and transparency and will also enable the SECP to be fully compliant with global standards. The changes are available on the SECP website for public comments.

Published in The Express Tribune, March  13^th,  2015.

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