The Securities and Exchange Commission of Pakistan (SECP) has issued a new procedure for centralized digital onboarding of customers of securities brokers, assets management companies, and other regulated intermediaries.
The SECP issued circular number 6 of 2023 in this regard on Friday. According to the SECP, the said procedure would be applicable to specified SECP-regulated entities i.e. securities brokers, futures brokers, asset management companies, insurance companies and their distribution agents, securities and futures advisors, and investment advisors (regulated intermediaries) for digital onboarding of their customers.
In order to facilitate a uniform process for the onboarding of customers, the SECP has allowed the Central Depository Company of Pakistan Limited (CDC) to provide a Centralized Gateway Portal (CGP) for the onboarding of individual resident customers by the specified SECP-regulated intermediaries. The CDC, Pakistan Stock Exchange Limited (PSX), and National Clearing Company of Pakistan Limited (NCCPL) shall issue a joint procedure that shall be followed by all specified regulated intermediaries.
The specified regulated intermediaries shall establish their connectivity with the CGP and integrate their online account opening portals.
The specified regulated intermediaries shall share and regularly update, the information and documents of individual resident customers with the CGP in accordance with the joint procedures, subject to the prior consent of the respective customer, irrespective of whether the account has been opened through the CGP or through other means.
The CGP may share/update customers ’information and documents with other market intermediaries, in accordance with joint procedure subject to the consent of the customers.
The SECP has specified the simplified and standardized information for onboarding Pakistani resident individual customers of specified regulated intermediaries through the CGP or through other means, SECP added.