They won't have to physically sign forms and declarations
The Securities and Exchange Commission of Pakistan has introduced the digital onboarding mechanism for investors of asset management companies (AMCs), it said Thursday. They can now have their accounts opened without physically signing different forms and declarations.
The development comes as part of the SECP’s efforts to usher in a new era of smart investments. The digital onboarding mechanism offers investors not only a seamless account opening process for investments in mutual funds but also eliminates the requirement of physical presence and submission of physical documents.
AMCs are now allowed to conduct online customer verification process for opening of accounts to ensure investor protection and compliance with all legal and regulatory frameworks.
The mechanism introduces digital verification for authentication of the investor and original identification documents through virtual meeting application (WhatsApp, Skype, etc.) for face-to-face interaction on a real-time basis, the SECP said.
In addition, a simpler account opening process eliminates the process of physically signing different forms and declarations.
The virtual onboarding of investors in Pakistan is expected to boost innovation and competition in the mutual fund industry, according to the SECP. It will encourage the use of financial technology and foster financial inclusion.
As the industry transitions towards digitization of financial services, the SECP said it believes that digital onboarding will soon become a norm in the industry.