SECP asks cos to file Beneficial Ownership Declaration on Form 45 immediately

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has advised companies which have not yet submitted Beneficial Ownership Declaration on Form 45, to do so at the earliest, as the SECP would be concluding the ongoing adjudication proceedings.

Every company is required by law to obtain information of its ultimate beneficial owners (UBOs) and file a declaration to this effect with SECP. This is aligned with international practices, designed to improve standards of transparency in ownership and control structure of corporate entities.

In this regard, SECP has issued periodic reminders to registered companies concerning their obligation to comply with this provision of law and also carried out extensive awareness campaign through print and social media. In order to facilitate companies in compliance, SECP has introduced a mechanism for online submission of Form 45, which has received an encouraging response.

It is important to note that failure to file the requisite Form 45 may result in imposition of penalty up to Rs 10 million, and therefore, SECP has issued final announcement to companies to comply with this requirement, before conclusion of the adjudication proceedings. SECP remains fully committed to promote compliance culture and good governance in the corporate sector, in the larger interests of various stakeholders.

Copyright Business Recorder, 2021