ISLAMABAD: In a significant move to streamline regulatory processes and enhance operational convenience for stakeholders, the Securities and Exchange Commission of Pakistan (SECP) has issued tailored compliance checklists for each category of business conducted by Non-Banking Finance Companies (NBFCs). The development is part of the SECP’s broader agenda to simplify regulatory compliance, reduce processing times, and promote ease of doing business in the non-bank financial sector.
According to a press release issued Friday, these checklists are aligned with international best practices and aim to provide clear, structured guidance to sponsors, applicants, and existing license holders on fulfilling the legal and procedural requirements for each NBFC business line. The business categories covered under this initiative include Asset Management Services, Investment Finance Services, Leasing, Housing Finance, Microfinance, Discounting Services, Venture Capital and Private Equity, Non-Bank Microfinance Institutions, and Real Estate Investment Trust (REIT) Management Services.
The SECP noted that the absence of clear documentation and fragmented regulatory references had historically created confusion among stakeholders and delayed processing times for license approvals and renewals. By consolidating all necessary legal references, fit-and-proper criteria, fee structures, and supporting documentation requirements into easy-to-follow matrices for each license category, the Commission hopes to eliminate ambiguity and standardize compliance expectations across the board.
The checklists also reflect SECP’s commitment to aligning domestic supervisory practices with international standards set by global regulatory bodies such as the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS). These enhancements are particularly relevant as the country moves forward with financial sector reforms under multilateral programs, including the IMF-supported initiatives.
An SECP official involved in the project said that the checklists are a precursor to the launch of a fully digital, end-to-end licensing portal planned for later this year, which would further improve regulatory transparency and efficiency. Industry stakeholders have welcomed the development, particularly from the venture capital and private equity segments, which often face delays due to uncertainty over regulatory documentation.
The SECP has encouraged all NBFC sponsors and operators to consult the newly issued checklists prior to filing any application, license renewal, or expansion requests. Stakeholders have also been invited to provide feedback on the checklists within 30 days, after which the SECP intends to periodically revise and update the documents in accordance with evolving regulatory needs.
