Collaboration between SECP and PTA to create a more secure digital ecosystem

The Chairman of the SECP met with the Chairman of the Pakistan Telecommunication Authority (PTA) on July 22, 2023.

Aug 9, 2023 - 07:41
 0  30
Collaboration between SECP and PTA to create a more secure digital ecosystem

In accordance with the Securities and Exchange Commission of Pakistan Act, 1997, the Securities and Exchange Commission of Pakistan was established, and it went into operation on January 1, 1999. It has enforcement and investigation authority.

The Pakistan Telecommunication Ordinance 1994, established the primary regulatory framework for the telecommunication industry including the establishment of an authority. Under Telecom Reorganization Act 1996, Pakistan Telecommunication Authority (PTA) was established to regulate the establishment, operation and maintenance of telecommunication systems and the provision of telecom services.

The Chairman of the SECP met with the Chairman of the Pakistan Telecommunication Authority (PTA) on July 22, 2023, according to a press release from the Securities and Exchange Commission of Pakistan (SECP), among other things to improve cooperation between their departments to secure Pakistan's digital environment.

In order to promote effective cooperation and identify areas of shared interest between the two organizations, the Chairman of the Pakistan Telecommunication Authority (PTA), Major General (R) Hafeez Ur Rehman, and the Chairman of the Securities and Exchange Commission of Pakistan (SECP), Mr. Akif Saeed, met. The Chairman SECP was accompanied by the Commissioner Mujtaba Ahmad Lodhi and Head of Specialized Companies Division Khalida Habib. It was decided that SECP and PTA would formally bind their cooperation by signing a Memorandum of Understanding in order to emphasize the importance of collaborative efforts.

For illegal lending apps specifically, it was decided to establish a cooperative monitoring and reporting mechanism to ensure appropriate and prompt action. The Chairman of the SECP informed his counterpart about the SECP framework for digital lending apps and the anticipated function of cyber security auditors to certify the privacy and security standards of digital apps. The SECP was informed that a Whitelist was published on its website to verify the legitimacy of digital lending apps operating in Pakistan. Financial applications are regulated by the State Bank of Pakistan's legislative frameworks and granted licenses by the Securities and Exchange Commission of Pakistan (SECP). PTA's function largely entails blocking illegal apps, however this action is also conducted when SECP identifies such apps or when users report them as fraudulent through PTA's complaint management system.

59 applications were reported by SECP and on PTA's complaint management system (CMS) as part of its campaign against unlawful loan apps. Out of them, PTA swiftly blocked 43 unauthorized apps. The SECP has been asked for more information regarding the other 16 apps.

Akif informed the PTA Chairman that SECP is developing a cyber-security framework and would share it with PTA for comments in view of the increased digitization in the business and financial sectors. A comprehensive disclosure of fees, loan terms, installment payments, and charges to borrowers is another need of the framework, according to Akif.

In order to safeguard the public from potential fraudulent practices, both regulators also decided to start a joint awareness campaign in Pakistan to inform them of the dangers associated with illicit digital lending apps.

What's Your Reaction?

like

dislike

love

funny

angry

sad

wow