The Securities and Exchange Commission of Pakistan (SECP) conducted an online session where it briefed non-banking finance companies (NBFCs) engaged in digital lending on improved regulatory requirements. The regulations were recently imposed on the digital lending firms to address the complaints of mis-selling, inflated charges, and undue customer data access.
Circular’s Key Requirements Issued by the SECP for Digital Lending Firms
While giving an overview of the requirements, SECP Executive Director Khalida Habib informed all the participants of the online session that the SECP has imposed restrictions on deducting upfront charges from the lent amount. Apart from this, digital lending companies are restricted from operating more than one digital App at the Google Play store or any other platform.
The companies can still launch different products and schemes under one master app; hence they are asked to identify one master app and shut down other apps within 90 days. The digital lenders are also required to disclose their full corporate name on their mobile applications, protect users’ data at all costs, and stopped from operating more than one digital App at the Google Play store or any other platform to provide audit reports of their apps from a PTA approved IT security audit firm.
Unregistered and Unlicensed Non-banking Service Providers
The Securities Exchange Commission of Pakistan (SECP) has written letters to Google and Apple, urging that applications of unregistered and unlicensed non-banking service providers should not be placed on Google Play Store and Apple Store. “We have asked the two companies not to allow such apps on their platforms. It will now be easier to communicate with Google as it has opened its office in Pakistan,” said SECP Chairman Akif Saeed.