The Securities and Exchange Commission of Pakistan (SECP) intends to collaborate with stakeholders to boost Takaful volume in Pakistan by launching Taktech (Takaful technology) to transform the industry.
According to an SECP report on Islamic Finance, the SECP will work with all stakeholders to incorporate Shariah principles into disruptive Fintech innovations (Smart contracts, Big Data, and Blockchain technology), which will aid in financial inclusion and improve the customer experience for Shariah-sensitive investors.
The agency will also examine RegTech solutions for Islamic financial industry oversight, particularly in the areas of Shariah compliance and Shariah audit.
The SECP also intends to collaborate with partners to increase the volume of Takaful in Pakistan by launching Taktech (Takaful technology) to modernize the takaful sector and complement existing programs to expand takaful coverage to underserved populations.
SECP will also look into the Asset Light Sukuk framework for Asset Light Sukuk issuance.
From 2020 to 2021, one new Shariah Advisor was registered with the SECP under the Shariah Advisors Regulations of 2017. It’s worth noting that the Securities Exchange has registered 105 Shariah advisers thus far, including six private limited entities that provide Shariah advisory services.
To establish a high level of standardization in the operational and business operations of Islamic financial institutions, the SECP has been steadily implementing Accounting and Shariah Standards released by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI).
SECP has published a draught notification for the acceptance of seven (7) more AAOIFI Shariah Standards in this regard, while further Shariah standards are being considered for inclusion in the draught.
To read our blog on “In April 2022, the SECP registered 2,345 new businesses,” click here.
