SECP Issues Final Warning to Companies to File UBO Declaration

The Securities and Exchange Commission of Pakistan has advised the companies that have not submitted the Beneficial Ownership Declaration on Form 45 to do so at the earliest because it is about to conclude the ongoing adjudication proceedings. Each company is required by the law to obtain information of its ultimate beneficial owners (UBOs) and file a declaration with the Securities and Exchange Commission of Pakistan (SECP). This is aligned with international practices that are designed to improve the standards of transparency in the ownership and control structure of corporate entities. The SECP had issued periodic reminders to the registered companies concerning their obligations to comply with this provision of the law. It had also carried out an extensive awareness campaign via print and social media. In order to facilitate the companies in compliance, the SECP had introduced a mechanism for the online submission of Form 45, which had received an encouraging response. Failure to file Form 45 may result in the imposition of a penalty of up to Rs. 10 million., which is why the SECP has issued a final announcement to the concerned companies to comply with this requirement before the conclusion of adjudication proceedings. The SECP remains fully committed to promoting a compliance culture and good governance in the corporate sector in the larger interests of various stakeholders.