The Securities and Exchange Commission of Pakistan (SECP) Tuesday issued simplified criteria for opening 'Sahulat Sarmayakari' Account to facilitate individual low-risk customers and branchless banking accountholders by Asset Management Companies (AMCs).
According to a circular, in continuation of circular no 12 of 2009, the commission in exercise of powers conferred under section 282B(3) of Companies Ordinance, 1984, issued the simplified criteria for opening of 'Sahulat Sarmayakari' Account for individual low risk customers and branchless banking account holders by AMCs. The SECP issued in detail the requirements including eligibility for opening of 'Sahulat Sarmayakari' Account for individual low risk customers as well as customers of branchless banking account.
Individual low-risk customers: Only Pakistani Individuals with no joint accounts; AMC shall ensure that one CNIC holder can open only one account in an AMC. Customers of Branchless Banking Account: Only Pakistani Individuals with no joint Accounts and AMC shall ensure that one CNIC holder can open only one account in an AMC.
Minimum customer information required by AMC for individual low risk customers: name as written on CNIC; father/spouse name; date of birth; CNIC number; mobile number; address; occupation and source of income. The said information may be transferred to AMC from Nadra.
AMC shall obtain declaration within Account Opening Form from the customer regarding sources of funds/income m the account. Provided that this requirement will not be applicable in case of online account opening where total investment is restricted to Rs 100,000 and per transaction limit is restricted to Rs 25,000/-.
Customers of Branchless Banking Account: Name as written on CNIC; father/spouse name; date of birth; CNIC number; mobile number; address The above information may be transferred to AMC from mobile banking service providers or through Nadra.
Minimum documents required for Individual Low Risk Customers: electronic image of computerised/Smart National Identity Card or copy of National Identity Card for Overseas Pakistanis. In case of minor accounts, the banks shall obtain photocopy of Form-B, Birth Certificate or Student ill card (as appropriate) of the minor. In addition, photocopy of any of identity document as above of the guardian of the minor shall be obtained.
The AMC shall obtain undertaking from the staff that he/she has fulfilled all account opening requirements. Customers of branchless banking account: copy/electronic image of Computerised/Smart National Identity Card.
Verification for individual low-risk customers: Verification of customer particulars from Nadra. However, In case of biometric verification by the AMC or its distributor, the account may be opened instantly. The AMC shall through physical/electronic means/telephone calls/mobile calls/SMS obtain customer confirmation regarding opening of account and shall also maintain archive of these records as per legal/regulatory record retention requirements
Verification for Customers of Branchless Banking Account: Verification of customer particulars from NADRA. However, In case of biometric verification by the service provider or its agent, the account may be opened instantly. The AMC through mobile calls/SMS to obtain customer confirmation regarding opening of account and shall also maintain archive of these record as per legal/regulatory record retention requirements.
Requirements Account opening form for Individual Low Risk Customers: One page simplified paper based form /electronic form.
Customers of Branchless Banking Account: Simplified electronic form.
Account activation for Individual Low Risk Customers: Accounts may be opened instantly after due diligence checks, however activation of these accounts shall be restricted for transactions until NADRA verification is completed and after face to face interaction with customer by AMC staff or distributor. The requirement of face to face interaction will not be applicable in case of online account opening where total investment is restricted to Rs 100,000/- and per transaction limit is restricted to Rs 25,000/-. Provided that the account may be activated instantly where biometric thumb impression of customer (verified from NADRA) is taken by the AMC or its distributor.
Requirements of Investment/ IT/ Limits for Individual Low Risk Customers: Total investment limit at any point in time is restricted to Rs 800,000/-. Total investment amount during a year is restricted to Rs 800,000/-. The amount shall be invested/redeemed only through the cheque or online bank account of the customer
Customers of Branchless Banking Account: Total investment limit is restricted to Rs 400,000. The amount shall be invested through the branchless bank account of the customer and can be redeemed through the branchless banking account or online bank account of the customer.
Account opening point for Individual Low Risk Customers: AMC Branches, website of AMC and distribution networks of AMC. Accounts may also be opened by the AMC employee/ staff/distributors by visiting customers places eg factories, organisations, universities/colleges, residences, etc.
Customers of Branchless Banking Account: Online.
Control mechanism for Individual Low Risk Customers: The AMC shall separately categorise these accounts in their system as 'Sahulat Sarmayakari' Account. During operation of the accounts, if any high risk factor is identified by the AMC in its own assessment or as per international standards viz-a-viz FATF Recommendations etc, the AMC shall consider taking necessary action in accordance with law including filing Suspicious Transaction Reports (STRs) with FMU
Customers of Branchless Banking Account: AMC shall separately categorise these accounts in their system as 'Sahulat Sarmayakari' Account. During operation of the accounts, if any high risk factor is identified by the AMC in its own assessment or as per international standards viz-a-viz FATF Recommendations etc, the AMC shall consider taking necessary action in accordance with law including filing Suspicious Transaction Reports (STRs) with FMU.
Type of CIS can be offered to such investors for Individual Low Risk Customers: Initially AMC can offer only Money Market Fund and/or Income Fund to the investor. However, subsequently after completion of customer risk profiling for assessment of suitability of the Collective Investment Scheme (CIS) to the investor, the AMC may offer other categories of CIS to investors
Customers of Branchless Banking Account: Initially AMC can offer only Money Market Fund and/or Income Fund to the investor. However, subsequently after completion of customer risk profiling for assessment of suitability of the Collective Investment Scheme (CIS) to the investor, the AMC may offer other categories of CIS to investors. This circular of SECP shall come into force with immediate effect, the SECP added.
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