PAKISTAN – SECP decries smear campaign against insurance commissioner

Securities and Exchange Commission of Pakistan (SECP) in exercise of its statutory functions has initiated various actions against certain insurance companies suspected of involvement in violations of regulatory laws. In reaction to SECP’s regulatory actions to protect the interests of insurers, the suspected companies have initiated a smear campaign against the SECP in general and the insurance division commissioner in particular, in a section of the press by instituting frivolous petitions in blatant abuse of law. The Registrar of the Supreme Court has returned one such petition—at the behest of certain unscrupulous elements—with objections on grounds that it contained unsubstantiated allegations. 

The SECP would like to clarify that all accusations made against the commissioner belie the facts and are part of a malicious campaign launched by vested interests to malign the SECP and tarnish the image of the insurance commissioner. The SECP unequivocally states that the commissioner and the insurance division had severed all business ties with insurance or Takaful companies prior to joining the SECP. Since September 2011, neither he nor any member from his immediate family had any business dealings with any insurance company. 

The SECP formulates rules and regulations to protect the interests of all stakeholders after following a well-defined legal process, which includes public consultations with regulated entities in accordance with the law. The rules and regulations notified and enforced by the SECP are a result of an exhaustive consultative process and involve consensus of various stakeholders and is essentially steered towards ensuring effective monitoring.