The Securities and Exchange Commission of Pakistan (SECP) under its investor awareness initiative conducted a seminar on Voluntary Pension System (VPS) at a local hotel for the senior HR professionals of the corporate sector. The SECP chairman in his message outlined his vision for the country.
"My vision is that Pakistan adopts savings and retirement planning as a part of culture. Consequently, at the time of retirement, nobody will have the fear of financial insecurity and decline in his standard of living. "This is only possible when individual take charge of retirement planning decision."
Hijazi said that the introduction of a voluntary pension system in Pakistan was driven by the pressing need to provide alternative avenues for investment. VPS operates on a de-centralised market based approach, offering flexibility in terms of the contribution rates as well as investment choices to service the growing needs of investors. The SECP ensures to safeguard the interests of contributors through a comprehensive regulatory framework. Further, the industry plays an instrumental role in ensuring an effective governance structure, sound risk management practices and well-placed internal controls. This is all essential to provide trust and confidence that is very much needed for a thriving VPS industry.
Chairman Hijazi stated that organising such seminars is significant in the SECP's continuous efforts towards creating a deeper level of understanding and awareness about VPS. He stressed on the industry to widen the accessibility of VPS to all members of the population, from the self-employed as well as the younger professionals. Raising old-age savings awareness and getting investors to change their behaviour must be the focus of the industry to achieving its growth objective.
The seminar was held with the collaboration of SHRM Forum, the local chapter of the Society for Human Resource Management, USA. The guest speakers on the event were Muhammad Ali Saeed, CEO SAAO Capital; and Ali Alvi, Chief Investment Officer, UBL Fund Managers.
VPS as a product offers an SECP-regulated and viable savings vehicle for investors and the general public. The SECP is keen to assist in the growth of this product so that the public can reap the benefits of VPS leading to a positive contribution to the national economy.
The seminar was especially designed for senior HR professionals and decision-makers from the corporate sector to educate them about the product and demonstrate the potential benefits of VPS to them as employers. With the introduction of regulatory framework for VPS in Pakistan, the concept of pension for peaceful and secure retirement can be introduced to employers as an employee retention tool and as an additional employee benefit.
About 150 individuals representing large and medium sized employers such as Engro, DHA, K-Electric, State Bank, Faysal Bank, Dubai Islamic Bank, PSO, SSGC, Tri-Pack attended the seminar. Speakers' presentations were highly interactive and led to discussions on product features, inherent benefits to the participating individual, how the product is regulated for investor protection and how it may be used as a retention tool by employers. Participants found the session to be of high value and expressed the need for such sessions for raising awareness among the HR professionals. The event was followed by a lively question-answer session.-PR
Comments
Comments are closed.