SECP facilitates mutual fund industry through updated master Circular

ISLAMABAD, Jul 28 (APP):To facilitate the mutual fund industry by providing a single, updated source of applicable regulatory requirements, the Securities and Exchange Commission of Pakistan (SECP) has issued an updated Master Circular for Asset Management Companies (AMCs) and Investment Advisers (IAs).

The updated Master Circular incorporates all applicable circulars, directions and clarifications issued up to June 30, 2026, including key regulatory updates relating to Infrastructure Funds, ESG Funds, Investment Plans, Digital AMCs, digital onboarding of investors through regulated financial institutions, enhancement of investment limits for low-risk investors, performance benchmarks, Key Fact Statement (KFS) requirements, trust deed formats and the Market Development Fund.

The Master Circular is a compilation of all applicable circulars, directions and clarifications issued by the Commission from January 6, 2009 to June 30, 2026 for the regulation of Collective Investment Schemes (CIS)/Mutual Funds and Investment Advisory Services.

It covers matters relating to digitisation, advertisements, categorisation 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 Non-Banking Finance Companies (NBFCs), distribution of units of Collective Investment Schemes, outsourcing arrangements, risk management and compliance, merger of open-end schemes, procedures for unit holders’ meetings, separately managed accounts and closed-end schemes.

In case of any inconsistency between the Master Circular and the applicable circular, the contents of the relevant circular shall prevail.