ISLAMABAD: In continuation of its efforts to promote financial inclusion through digitalization, increase investor base and micro-savings, the Securities and Exchange Commission of Pakistan has specified a swift and simplified onboarding framework for customers of the Asset Management Companies (AMCs) and Pension Fund Managers (PFM).
Under the new framework, the accounts can be opened online, while the Asset Management Companies (AMCs) and Pension Fund Managers (PFMs) can conduct customer verification and authentication through virtual platforms such as WhatsApp, Skype, etc.
The new framework classifies three categories of investment accounts on the basis of investment & transaction limits, and the respective documentation/verifications, which are SehlSarmayakari Account, Sahula tSarmayakari Account and Sarmayakari Account. Under this new framework, digital joint account opening is also allowed.
Through SehlSarma-yakari Account, users can be onboarded through digital wallets without providing any additional information or document to the AMCs. The SahulatSarma-yakari Account requires additional documentation but does not necessitate customer risk profiling for investments (in Money Market and Low risk Income Schemes). The Sarmayakari Account is the most comprehensive and does not have any investment or transaction limit.
Therefore, it requires additional legal documentation/ information. Furthermore, customers of all these accounts have the option of upgrading their accounts by fulfilling respective account requirements in due course.
Copyright Business Recorder, 2021
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