SECP issues circular regarding financial operation of family window takaful operations by life insurers: SECP vide Circular No. 15 of 2019 (dated November 18, 2019) in exercise of powers under Rule 11(1)(c) of the Takaful Rules 2012 has given the following requirement of financial reporting to be followed by the life insurers relating to financial reporting of their window takaful operations:

  • Life insurers authorised to carry on window takaful operations shall include Family Takaful results in their published financial statements by consolidating assets, liabilities, income and expenses of window family takaful operations with that of the conventional
    operations of the insurer;
  • Retained earnings of the Participant Takaful Fund (PTF) shall be classified as insurance liability and included in Total Liabilities of the Window Family Takaful Operations; and
  • Balance of Operator sub-funds under the Window Family Takaful operations shall be classified as part of shareholders’ equity of the life insurer presented separately into retained earnings attributable to shareholders-ledger account D and other components.
Posted in SECP