SECP registers first Life Insurer as Pension Fund Manager
- 68 Views
- Nasir Taimori
- November 17, 2021
- Business
Islamabad: In another first at the Securities and Exchange Commission of Pakistan (SECP), a life insurance company namely the Postal Life Insurance Company Limited, has been granted permission to manage private pension funds under the Voluntary Pension System (VPS).
Private pension funds under the VPS are regulated by the SECP in terms of VPS Rules, 2005, and are self-contributory, tax advantaged long-term saving schemes, whereby individuals can voluntarily contribute to a pension fund during their working life to have a regular income after retirement. The employer can also contribute on behalf of their employees.
Considering the need and importance of private pensions in Pakistan’s context, the SECP has undertaken various regulatory reforms for the development of this sector. This includes revamping the investment framework and raising awareness of the need for private pensions, especially in case of private sector workers. This has translated into a year-on-year growth of 27% in asset under management from Rs. 31.4 billion to Rs. 39.7 billion as of June 30, 2021 and the now inclusion of first life insurance company to undertake pension fund management services.
The SECP aims to continue its reform agenda for the development of the private pension and annuity market in Pakistan. It is currently working on the development of annuity regulatory framework for the asset management sector and bringing structural reforms in VPS in line with 401(K) plan of the United States. The SECP is also engaged with the Mutual Fund Association of Pakistan (MUFAP), professional associations and other stakeholders to corroborate efforts for increasing awareness of VPS.
Nasir Taimori is a freelance journalist working for different digital publications. He writes on various social, national and international issues. He has also an interest in translation.
- Spotify ICON Pakistan Launched to Celebrate Legacy Artists and their Timeless Music
- Emirates Supports Young Golf Hopefuls Journeys to the US for Higher Education
- Mobilink Bank partners with Mercurial Minds to accelerate financial transformation
- Mastercard and UPaisa launch a new debit card to transform the Pakistan payments landscape
- PTCL Group partners with the Pakistan Hockey team to renew and honor the national legacy