Commissioner (Insurance), Insurance Division officers: SECP delegates its key powers and functions

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP), Wednesday, delegated its key powers and functions to the Commissioner (Insurance) and the officers of the Insurance Division to deal with insurance companies, insurance brokers, insurance surveyors, and third-party administrators.

The SECP has issued an SRO 508 (I)/2021, here on Wednesday, to considerably enhance the powers of the Commissioner (Insurance) and the officers of the Insurance Division.

Under the notification, the SECP in supersession of its earlier notifications SRO 744(I)/2020 dated August 17, 2020 and SRO 20(I)/2021 dated January 11, 2021, subject to such conditions and limitations as it may from time to time impose, hereby delegates the certain powers and functions of the Commission under the primary and secondary legislation to its Commissioner (Insurance) and the officers of the Insurance Division, to the extent of insurance companies, insurance brokers, insurance surveyors, and third-party administrators only, whether listed or not.

According to the notification, Commissioner (Market Development Policy and Regulation Department - Insurance Division) has been empowered to issue directives, circulars and guidelines.

Commissioner (Market Development Policy and Regulation Department - Insurance Division) would have the authority 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.

He would have the authority to approve the appointment of chief executive officer, principal officer or director of an insurer.

He can grant approval for Employee Stock Option Scheme in accordance with the proviso to section 83 (1)(a)(iv), for public companies and allow a company to issue further share capital to any person for cash or for a consideration other than cash.

Commissioner (Market Development Policy and Regulation Department - Insurance Division) would also have the authority to grant exemption from provisions relating to consolidated financial statements.

Executive Director/Director/Head of Department (Market Development Policy and Regulation Department - Insurance Division) would be empowered to exercise certain powers including to extend the period of book closure mentioned in sub-section (1) for a further period of 15 days.

Commissioner (Market Development Policy and Regulation Department - Insurance Division) would be empowered to issue recommendation letter for issuance of US$ denominated policies by local insurance company and grant exemptions from the requirements of any circular issued by the Commission on a case to case basis.

In case of vacancy or unavailability of Executive Director/Director/Head of Department (Market Development Policy and Regulation Department - Insurance Division) the powers and functions delegated to him/her through this notification shall stand delegated to the Commissioner (Market Development Policy and Regulation Department - Insurance Division), the SECP added.

Copyright Business Recorder, 2021