ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for the reinsurance brokers to obtain registration from the commission.
The SECP has issued S R O 281(I)/2021 here on Tuesday to issue Securities and Exchange Commission (Reinsurance Brokers) Regulations, 2021.
Through the new notification, the SECP has tightened regulations for the Reinsurance Brokers.
According to the new regulations, no person shall act or perform the functions of the reinsurance broker unless registered as a reinsurance broker with the Commission under these regulations except International Reinsurance Broker. On the commencement of these regulations, any person already providing services as reinsurance broker shall obtain registration under these regulations within a period of six months from such commencement.
A company limited by shares, incorporated under the Companies Act, 2017 may apply to the Commission for registration to act as a reinsurance broker, provided that it meets the pre-conditions of such registration in terms of paid-up capital requirement, statutory deposit, professional indemnity, fit and proper criteria and such other conditions as deemed appropriate by the Commission, SECP said.
A foreign reinsurance broker may apply to the Commission for grant of a registration to act as a reinsurance broker in Pakistan, provided that it meets the pre-conditions of such registration in terms of paid up capital, professional indemnity, statutory deposit and such other conditions as deemed appropriate by the Commission, SECP added.
Any applicant seeking registration as a Reinsurance Broker under these regulations shall satisfy the following conditions: Firstly, it shall have a minimum amount of paid up capital as Pak Rupees thirty million or any higher amount as may be specified by the Commission. Secondly, the paid-up capital in the company shall be in the form of equity shares; Provided that the companies licensed to perform functions of direct insurance broking shall comply with the paid-up capital requirement within one year from the date of issuance of these regulations, SECP added.
Copyright Business Recorder, 2021
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