ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Thursday introduced the ‘Digital Onboarding Mechanism’ (DOM) for investors of Asset Management Companies (AMCs).
The mechanism offers investors a seamless account opening process for investments in mutual funds and eliminates the requirement of physical presence and submission of documents.
In this respect, SECP has issued Circular No 35 of 2020 and placed on its website.
AMCs are now allowed to conduct the Customer Verification process for account opening online while ensuring investor protection and compliance with all applicable relevant legal and regulatory framework.
Furthermore, the mechanism introduces digital verification for authentication of the investor and original identification documents via virtual meeting application including WhatsApp, Skype, etc.
In addition, the simplified account opening process eliminates the physical signing of different forms and declarations by the investors.
Introduction of Digital Onboarding Mechanism reflects the SECP’s continued commitment towards digitisation while ensuring the growth of the non-bank financial sector and capital markets, the commission said.
The virtual onboarding of investors in Pakistan is expected to boost innovation and competition in the mutual fund industry encouraging the use of financial technology and fostering financial inclusion, the SECP added.
The commission notes that as the industry transitions towards the digitisation of financial services, digital onboarding will soon become the norm in the industry.
