SECP passes orders against takaful, insurance cos
KARACHI: The Securities and Exchange Commission of Pakistan has passed three orders against a takaful company for not complying with the provisions of the Insurance Ordinance, 2000, and the Companies Ordinance, 1984, in which one of the orders relates to the interpretation of the exemption given under Proviso to Section 187(h) of the Companies Ordinance, 1984.
Moreover, the insurance division of SECP has also passed an order against a Life Insurance Company under Section 130(2) of Insurance Ordinance, 2000, as a result of adjudication of an appeal against the order of the federal insurance ombudsman. The SECP has also issued 13 warning letters, four show-cause notices to various insurance and takaful companies for contravening the various provisions of corporate laws, insurance laws and related accounting standards and regulations. These warnings, show-cause notices, and orders were issued by the insurance division of the SECP during the month of April 2013 after conducting 13 hearings.
To maintain transparency and provide equal opportunity to all insurance surveyors, Pakistan Insurance Institute has been mandated to examine and check competency of surveyors, on the basis of which SECP will issue the licence.