Insurance Companies (Sound and Prudent Management) Regulations 2012 (Updated 05.07.2022)

SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN Islamabad 9 th January, 2012 NOTIFICATION S.R.O. 15(I)/2012 - In exercise of the powers conferred by clause (f) of sub-section (1) of section 7, section 12 and sub-section (3) of section 167 of the Insurance Ordinance, 2000 (XXXIX of 2000) read with section 40 of the Securities and Exchange Commission of Pakistan Act, 1997 (XLII of 1997) and having been previously published in the newspapers of wider circulation as required by sub-section (2) of section 40 of said Act XLII of 1997, the Securities and Exchange Commission of Pakistan, with the approval of the Policy Board, hereby makes the following regulations, namely:-

1. Short title and commencement. - (1) These Regulations shall be called the Insurance Companies
   (Sound and Prudent Management) Regulations, 2012.
   (2) They shall come into force at once.
2. APPLICATION AND SCOPE
   (1) These Regulations shall be applicable to the following persons:
   (i) chief executive, by whatever name called and principal officer of the insurer; (ii) directors of the insurer; and (iii) Key Officers of the insurer. Explanation: "Key Officer" includes, the persons discharging the following functional responsibilities, - . a. chief operating officer, head of operation, by whatever name called; b. chief financial officer, head of accounts, by whatever name called;
   c. head of actuarial department;
   d. head of law, company secretary or compliance officer; e. chief investment officer, head of investments, by whatever name called; f. head of internal audit; g. heads of departments; and [ga. Consultant, Advisor, Executive Director or any other position by whatever name called, which is not a member of the Board of Directors but charged with the functions of decision-making and formulation of policies of an insurer;] h. any other officer, the Commission may include [(1A) No insurer shall appoint a person as its chief executive or principal officer or director who does not comply with the fit and proper criteria provided in these regulations and without approval of the Commission. (1B) In order to assess the fitness and propriety of proposed persons, the insurer shall seek information as per the requirements of these regulations at the time of election of directors or appointment of chief executive or principal officer or director, as the case may be.