SECP, State Bank of Pakistan and National Bank of Pakistan should take strict action against the NBP-Funds and others who are deceiving local investors
The Transparency International (TI) Pakistan requested the Pakistani authorities to order National Bank of Pakistan (NBP) not to allow the use of its LOGO to NBP-Funds.
Transparency International has taken initiative and has recognize the pitfalls and of such impersonation.
In its letter sent to PSPM to PM House Islamabad, Governor State Bank of Pakistan (SBP), Chairman Securities and Exchange Commission of Pakistan (SECP) Policy Board, Chairman SECP, Banking Ombudsman Karachi, Director General Federal Investigation Agency (DG-FIA) Islamabad, Registrar Supreme Court of Pakistan Islamabad, TI asked to take further action under the rules on the complaint of complainant.
Earlier, the Treasure Magazine has revealed that Pakistan’s biggest Mutual Fund ‘NBP-Funds Management Fund’, which is one of subsidiary of the NBP in Mutual Fund Industry, is using Logo of NBP without registering from the Intellectual Property Organization – Pakistan (IPO-Pakistan) nor it’s using an approved name.
Taking action on the complaint, the Transparency International requested the Pakistani authorities to take action under the rules and regulations and restrain the National Bank of Pakistan from allowing the use of its LOGO to NBP-Funds.
The LOGO gives an impression the NBP is behind the matter and people understand NBP, which is the most trusted name in Pakistani Banking industry, will be protecting their investments. TI has mile stoned in striving to have Rule of Law in Pakistan which is the only way to eliminate corruption and have good governance in country.
At least the TI recognized the issue which complainant was protesting for the last two years that NBP-Funds is deceiving the investors for the last many years and had submitted her complaint in NBP, SECP, FIA, NAB and Ministry of Finance, but has not received any redressal for her loss of approximately Rs 8 million.
SECP in its circular No 16 of 2014 has stated the general principle for Asset Management Companies at S.No 11, that an AMC shall ensure that the advertisement is not framed to exploit the lack of experience or knowledge of the investors, and the inclusion of excessive details which may detract the investors, shall be avoided.
“The NBP has been denying that NAFA and the other Funds of NBP are independent entities and are not using NBP LOGO, and inform that complainant to approach the Fund Management, but on quarter report 31, March 2016 of NAFA, NBP LOGO again appears, which fact negates NBP claim,” the Transparency International said.
Despite approaching all relevant forums this complain was heard but not weighed in the best interest of innocent Pakistani public. It is syndicated financial crime. Our taxes are being misused if public is unguarded and left in despair .This wholesome unpleasant experience was learned hard as a lesson which has marked its long lasting imprints of on the presence of unsafe financial institutions working under the umbrella of Government of Pakistan said the grieved complainant.
Operational Regulator must have reassess and weigh the lacuna of identified bad governance in the enlightened complaint by improvising strict standardized monitoring mechanism over NBP Fund Management Limited in particular .Other related companies must also be kept under strict surveillance where finances are involved along with institutional integrity.
FIA and National Accountability Bureau (NAB) are investigating this issue for the last 10-month and they did not take any action to protect the investors of the Mutual Fund industry. There are number of complaints against the NBP-Funds in banking Ombudsman Offices from all over the country.
The investors actually think that all their losses are because of the crushing of Stock Market, but they do not know the NBP-Funds has deceived them. The Mutual Funds invests its pool money in safe-haven to protect investors, therefore it is called Mutual Funds.
A top broker of the Stock Market said, “We recommends the new investors to come in the stock market through Mutual Funds as they do not know the stock market properly. Mutual Funds have their experts and protect the investors’ hard-earned money from up and down of the stocks markets and invest their pool’s money in Treasury Bills, Pakistan Investment Bonds and other low risk areas.”
In April 2018, NBP Fullerton Asset Management Limited has been renamed as NBP-Fund Management Limited as the country’s only National Bank ‘NBP’ made around 54 per cent investment, while a foreign investor Baltoro Growth Fund has made 36 per cent and Dr Amjad Waheed CEO of the Fund has just only 10 per cent.
At the time of renaming of this Fund, Ex-Chairman SECP Zafar Hijazi, Ex-President NBP Saeed Ahmed, who were considered the main player of the than Prime Minister Nawaz Sharif, approved this name ‘NBP- Fund’.
After this letter of the Transparency International, the SECP, State Bank of Pakistan and National Bank of Pakistan should take strict action against the NBP-Funds and others who are deceiving local investors.