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Business Recorder
05-07-2025
- Business
- Business Recorder
FY 2024–2025: SECP Appellate Bench disposes of 124 appeals
ISLAMABAD: The Appellate Bench of the Securities and Exchange Commission of Pakistan (SECP), in interest of timely justice and regulatory accountability has disposed 124 appeals during the financial year 2024–2025. Of the appeals decided, 22 cases pertained to the Insurance Ordinance, 2000, while 15 were related to the Securities Act, 2015. Additionally, 34 appeals involved provisions of the Companies Ordinance, 1984, and the Companies Act, 2017, and 05 appeals addressed violations of the Non-Banking Finance Companies Regulations, 2008. The remaining 48 appeals concerned breaches of the SECP's Anti-Money Laundering and Countering Financing of Terrorism Regulations, 2018 and 2020. Out of the 124 appeals filed against orders issued by SECP's adjudicating authorities, the Appellate Bench upheld 113 decisions, while 11 orders were set aside. This outcome underscores the Bench's efficiency, impartiality, and its role as an effective appellate forum for redressal of grievances and dispute resolution. All decisions rendered by the Appellate Bench are publicly accessible on the SECP's official website, reflecting the Commission's ongoing commitment to transparency and good governance. Copyright Business Recorder, 2025
Business Recorder
22-05-2025
- Business
- Business Recorder
SECP ceases guarantee business of the United Insurance
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has ceased the guarantee business of the United Insurance Company of Pakistan Limited through direction issued on May 20, 2025, under section 60 of the Insurance Ordinance, 2000. Prior to issuance of the said Direction, a show-cause notice was issued to the United Insurance. The company obtained a stay order on February 21, 2024 from the Honourable Lahore High Court and on April 10, 2025, the Honourable Court dismissed the petition filed by United Insurance considering it without merit. United Insurance deliberately refused to encash called guarantees, on different pretexts, over a period of time, resulting in accumulation of guarantees amounting to Rs2.2 billion by December 2023. Further complaints amounting to Rs822 million regarding non-encashment of guarantees were received during year 2024 and 2025. Despite provision of various hearing opportunities, United Insurance failed to demonstrate the requisite compliance with regulatory requirements to carry on guarantees business. United Insurance also made materially false statement to SECP, during the proceedings, regarding settlement of one of the guarantees, amounting to approx Rs1 billion. The matter of false statement by United Insurance is to be dealt separately by SECP based on the relevant provisions of Ordinance. To protect the interests of policy and guarantee holders of United Insurance and to maintain the trust of public in the insurance sector, SECP took the decision to cease the guarantee business of United Insurance with immediate effect. Furthermore, United Insurance has been prohibited from issuing any new guarantees and rolling over existing guarantees. Moreover, United Insurance has been directed to fulfil its obligations with regard to already issued guarantees as and when they become due. United Insurance has the right to seek cancellation/modification of the Direction from SECP, subject to its compliance with the requirements of regulatory framework including obtaining of proper collateral against the issued guarantees and settlement of all unpaid guarantees. As part of its ongoing commitment to ensuring compliance and enhancing consumer confidence, SECP has addressed over 3,000 complaints since July 01, 2024, resulting in recovery of policy holders' claims aggregating to Rs1,300 million. The proactive approach by SECP is expected to enhance compliance in the insurance sector and build public trust. Copyright Business Recorder, 2025
Business Recorder
15-05-2025
- Business
- Business Recorder
Appellate forum quashes FIA probe against insurance firm
LAHORE: An Appellate forum has quashed inquiry proceedings against an insurance company initiated by Federal Investigation Agency (FIA) while terming them as uncalled for and without lawful authority. According to details, an insured person had approached FIA related to a dispute over insurance amount. Consequently, FIA launched inquiry and investigation proceedings against the insurance company. The insurance company challenged the jurisdiction of FIA in the matter before a higher appellate forum. The insurance company was of the view that besides having numerous other functions, Securities and Exchange Commission of Pakistan (SECP) is also a regulator of business of insurance companies. It further brought to the notice of the appellate forum that the SECP had taken up the case of the insured person and proceedings for settlement between the parties were in progress. The insured person was not agreeing to the amount which was released to him. The insurance company maintained that if there was any genuine dispute between parties it could be resolved before forum provided under Insurance Ordinance, 2000. Such dispute could not be made a base for proceedings under penal laws, as provisions of Insurance Ordinance are special law, which has to prevail over general law. It further pointed out that special mechanism has been provided for dealing with offences for contravention of Insurance Ordinance. Federal Investigation Agency, on the other hand, can only inquire and investigate certain offences either committed in connection with matters concerning federal government or for matters connected therewith. However, the insured person, as well as the FIA, opposed the viewpoint adopted by the insurance company. They were of the view that the Agency has lawful authority to deal with the matter due to the stubbornness of the insurance company, adamant not to entertain the claim. They further pointed out that undue delay was being made by the proceedings under the Insurance Ordinance, and the insured person as no option but to avail all possible options to secure his claim against the insured amount. However, the higher appellate forum did not agree with the insured person and quashed inquiry proceedings initiated by FIA while terming them as uncalled for and without lawful authority. Copyright Business Recorder, 2025
