KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has constituted a working group to propose regulatory framework for the development of financial technology ecosystem, The News learnt on Monday.

The working group comprising representatives from private and public sectors is tasked to review the current regulatory framework for the development of innovative fintech solutions, like equity crowd funding, peer-to-peer lending and nano-finance. It will tentatively hold its first meeting next month.

The group will evaluate and recommend measures for various regulators to facilitate the development and adoption of innovative fintech solutions at national level. The group is also tasked to identify areas where government can provide support for the startups like funds, policy support, tax incentives and other relevant matters in order to take fintech to next level.

It will also provide fintech expertise for capacity building sessions within the SECP and other fintech relevant fora. The working group was asked to submit public policy recommendations in Pakistan by November 30.

Shauzab Ali, commissioner of SECP, is the chairman of the 12-member working group, while Nadeem Hussain, chief executive officer (CEO) of Coach Planet N, is the co-chairman. Other members from private sector include Umair Sheikh, CEO of Arazi Ventures, Ali Samir, CEO of TPL e-Ventures and Mohsin Mujtaba from Qatar Stock Exchange.

SECP said the financial sector needs to embark on its digital journey and catch up fast with its global peers.

“In different countries, fintech innovation is cutting across regulatory jurisdictions because different business models or delivery methods for services don’t conform to existing regulatory structures. Because of the scope, scale, and dynamism of fintech, the sector is often regulated by multiple regulators,” the commission said in a letter to a member.

“In order to develop a comprehensive and coherent industry policy to shape regulatory thinking in this space and to contribute to the development of a conducive fintech environment in Pakistan, SECP has resolved to form a working group.”