Insurance business: SECP delegates certain powers to Commissioner Insurance

The Securities and Exchange Commission of Pakistan (SECP) has delegated certain powers and functions of the Commission to its Commissioner (Insurance) and the officers of the Insurance Division, to deal with the insurance companies, insurance brokers, insurance surveyors and third party administrators only.

According to an SRO 1468 (I)/2019 issued by the SECP Monday, the Commission hereby delegates the powers and functions of the Commission to its Commissioner (Insurance) and the officers of the Insurance Division to sanction issue of shares at discount on such terms and conditions as he deems fit and to allow extension in time to issue shares at discount, grant approval for extending period up to 30 days for allotment of offered shares that have been declined or remained unsubscribed by directors in a manner deemed fit by them, for public companies and allow a company to issue further share capital to any person for cash or for a consideration other than cash and impose a penalty on any violation.

They can exercise powers to issue/sign certificate of registration to carry on insurance business, issue to the insurer a written certificate of registration and sanction the institution of proceedings.

The Commissioner (Insurance) and the officers of the Insurance Division can exercise powers to refuse grant of authorization to an insurer, review the decision of refusal to grant authorization to an insurer, grant authorization to an insurer and specify the conditions for authorization to be complied with by the Takaful Operator or Window Takaful Operator.

They can exercise powers to impose a penalty for non-compliance, grant relief from the consequences of default in complying with conditions constituting as a private company, impose a penalty for contravention of sub-section (1) or sub-section (2), or making an incorrect statement, declaration or verification in the application of allotment of shares and impose penalty on default in repayment of money for shares not allotted.