SECP takes action against illegal microfinance lending

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has asked Apple and Google not to allow unverified microfinance lending mobile applications in Pakistan at their platforms, as some frauds were reported through such apps, SECP chairman Akif Saeed informed on Friday.

In an informal meeting with a group of journalists, the SECP chief said such financing was carried out through mobile applications and non-banking payment options, which were also asked to take strict measures to curb such payments, he added.

In a separate meeting with the representatives of the Insurance Association of Pakistan (IAP) and the chief executive officers of major insurance companies, Saeed emphasised improving the corporate image of the insurance industry by introducing new products with greater value to policyholders, upgrading service standards and timely disclosure of customers and claims data.

Akif was accompanied by the Commissioner SECP, Mujtaba Ahmad Lodhi, head of Insurance Waseem Khan, and executive director Musarat Jabeen.

He highlighted the significance of the insurance sector in overall financial sector and the country’s economy, stressing the industry participants to play their due role in development of the sector, along with the capital and debt markets.

The SECP team also asked the industry representatives to share their suggestions and feedback on the way forward for orderly development of the sector.

The industry participants suggested implementation of mandatory insurance schemes, including motor third-party liability insurance. The IAP pointed out that the sales tax on life insurance, health insurance and reinsurance services by provincial revenue authorities significantly hindered the growth of the sector. The meeting also discussed issues concerning the placement of reinsurances by the industry.

The SECP chairman assured the IAP representatives fullest support of the SECP for development of the sector and removing hurdles and resolving pressing issues of the industry.