Pakistan: Regulator widens eligibility criteria for CFOs of insurance companies

The Securities and Exchange Commission of Pakistan (SECP) has broadened the eligibility criteria for the position of chief financial officer of an insurance company.

The changes allow actuaries to assume the post, subject to qualifying conditions.

In a notification released last week, the SECP said that under the amendment to the rules, “a person, being a Fellow or Associate member of the Casualty Actuarial Society or the Institute of Actuaries in England or Society of Actuaries in the United States of America and has at least five years of managerial experience in the fields of audit or accounting or in managing financial or corporate affairs functions of an insurer, shall also be eligible to be appointed as the Chief Financial Officer of an insurer”.

The amendment was made to the Code of Corporate Governance for Insurers, 2016. It followed feedback received on an exposure draft issued in July 2024.

Qualification of CFO

Prior to the changes, the Code said:

“No person shall be appointed as the Chief Financial Officer of an insurer unless he has at least three (3) years of experience of being engaged in or employed in a public practice (audit/accounting), or in managing financial or corporate affairs function of a company, and: (a) is a member of a recognised body of professional accountants; or (b) has a postgraduate degree in finance from a recognised university or equivalent. Provided that individual serving as Chief Financial Officer of an insurer for the last five years at the time of coming into effect of this Code shall be exempted from the above qualification requirement.”