In a bid to promote digitization in the financial sector, Securities and Exchange Commission of Pakistan has allowed digital on-boarding of Mutual Fund Investors. As per the new mechanism, Asset Management Companies are allowed to carry out an online Customer Verification process for opening online accounts while ensuring investor protection and compliance with all the applicable relevant legal and regulatory frameworks. SECP has taken this step to seamless account opening process for investments in mutual funds.
The new the mechanism will introduces digital verification for authentication of the investor and original identification documents through digital applications such as WhatsApp, Zoom etc for online face-to-face interaction on a real-time basis. In addition, a simpler account opening process eliminates the physical signing of different forms and declarations by the investors.
The press release from SECP states that Introducing Digital On-boarding Mechanism reflects the SECP’s continued commitment towards digitization while ensuring the growth of the non-bank financial sector and capital markets. The virtual on-boarding of investors in Pakistan is expected to boost innovation and competition in the mutual fund industry encouraging the use of financial technology and fostering financial inclusion.
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