SECP Issues Master Circular for Mutual Funds, Investment Schemes, Advisories

The Securities and Exchange Commission of Pakistan (SECP) issued a master circular here for Mutual Funds/Collective Investment Schemes/ Investment Advisory Services. The SECP, in order to facilitate and create an enabling environment for the Asset Management Companies (AMCs)/Investment Advisors (IAs) and ensure compliance with statutory/regulatory requirements pertaining to Collective Investment Schemes/Investment Advisory Services, has issued a master circular, containing consolidated circulars. This Master Circular is a compilation/collection of all the existing/applicable Circulars and Directions issued by the Commission in relation to the Specialized Companies Division of Securities and Exchange Commission of Pakistan from time to time for regulation of Collective Investment Schemes/Mutual Funds/Investment Advisory Services. This document includes all circulars issued from January 06, 2009, up to September 30, 2024, which are already in force unless otherwise revised or repealed by the Commission. In case of any inconsistency between the Master circular and the applicable circular, the contents of the relevant circular shall prevail. The SECP master circular covers digitization, advertisements, categorization of Collective Investment Schemes and Investment Avenues, disclosure requirements, Constant Proportion Portfolio Insurance (CPPI) Based Schemes, Exchange Traded Funds (ETFs), Performance Benchmarks for Collective Investment Schemes, Selling and Marketing of Collective Investment Schemes, Sales Load and Expenses, Valuation and Provisioning, mandatory certifications for professionals of NBFCs and distribution of Units of CIS, outsourcing arrangements, Risk Management and Compliance, Merger of Open-End Schemes, procedure for Unit Holders Meeting, Closed End Schemes, Separately Managed Accounts, miscellaneous and Anti-Money Laundering.