ISLAMABAD: The security clearance of foreign donors/foreign directors of charitable associations and ‘not for profit’ companies is mandatory to check the foreign funding in such NPOs/NGOs under the Securities and Exchange Commission of Pakistan (SECP) monitoring framework.

The Securities and Exchange Commission of Pakistan (SECP) here on Wednesday conducted an awareness session on the Associations with Charitable and Not for Profit Objects Regulations, 2018.

This is the second webinar of the awareness/training series being done by the SECP to raise awareness about the Associations with Charitable and Not for Profit Objects Regulations, 2018.

During the session, the attendees were informed about these regulations that are primarily aimed at regulating registered not for profit companies in Pakistan.

In case of foreign directors, the documentation included Draft Memorandum of Association; estimated future annual income and expenditure statements; Letter of Intent or Memorandum of Understanding (MOU) with Foreign donors; resume of all subscribers / promoters; photocopies CNICs of all subscribers / promoters; and separate Security Clearance Proforma for each foreign donor, duly signed and filled in all respect, needs to be furnished.

SECP officials also shed light on the recent amendments in these regulations that have simplified licensing requirements for not for profit companies.

Under the new amendments, the requirements have been made concise as the template to NFP Form 1 has been simplified, the number of appendices has been reduced, and NFP Form 2 and 3 have been removed.

Furthermore, the requirement of Appendix C to NFP Form 1 i.e. Statement of Future Annual Income and Expenditure has been abolished.

Previously, companies licenced under Section 42 of the Companies Act, 2017 were required to apply to the Commission for renewal of the license after every three years. Now the renewal of the licence is no longer required as well.

A presentation about obligations applicable on promoters and intermediaries for seeking license under section 42 of the Companies Act, 2017 was also part of this awareness session.

The interactive webinar was followed by a dedicated Q&A session. Participants from multiple segments of society took part in the awareness session.

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