Regulatory Alerts2025-11-07 | BPRD Circular Letter No. 21Amendment in Reg. G-4 of Corporate Governance Regulatory Framework: Affidavit by Director of a Bank and its Wholly-Owned Exchange Company
This affidavit mandates that directors serving concurrently on the boards of a bank and its wholly-owned exchange company formally commit to managing potential conflicts of interest. The director must perform their duties independently, strictly adhere to arm's-length transaction standards, and maintain rigid information barriers between the two entities. Furthermore, the signatory pledges to recuse themselves from any decisions involving inter-company dealings and to provide full cooperation to the State Bank of Pakistan regarding conflict management.
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