New SBP instructions for selling third-party products

The State Bank of Pakistan (SBP) on Wednesday issued a comprehensively revised set of instructions on the sale of third-party products to address concerns over sale and bring transparency to such transactions.

“The instructions will be applicable from Nov 1,” the SBP said.

Banks often offer or sell financial products that are provided by other financial institutions, generally called third party products. Such offers are often prone to misdeclaration about the quality or pricing of products, according to the regulator.

“Banks also don’t assume any responsibility after the sale of products, which leads to difficulties for customers and disputes,” the central bank said.