SECP decides to revise investment procedure for insurance firms

The Securities and Exchange Commission of Pakistan (SECP) has decided to revise procedure for the insurance companies regarding investment of assets in government securities.

The SECP has issued SRO 535(I)/2021, here on Thursday to introduce draft amendments in the Insurance Rules, 2017.

Under the revised procedure on the assets to be invested in securities, 30 percent of the assets of the shareholders’ fund of a life insurer, or of a statutory fund of a life insurer, other than a statutory fund, which contains only investment linked policies, shall be invested in government securities.

A further 10 percent of the assets of the shareholders’ fund of a life insurer, or of a statutory fund of a life insurer, other than a statutory fund, which contains only investment linked policies, shall be invested in a combination of government securities and other approved securities, under sub-section (7) of section 35 of the Insurance Ordinance.

Provided that for the purposes of computation of the limits provided, inter-fund receivables of a shareholders’ fund or a statutory fund and right of use assets, other than right of use assets created against vehicle, office equipment and intangible assets, shall be excluded, the SECP added.