The Mutual Funds Association of Pakistan (MUFAP) and the Central Depository Company (CDC) of Pakistan Limited, through its subsidiary ITMinds Limited, have signed a Memorandum of Understanding (MoU) to develop and implement a state-of-the-art digital platform.
The MoU signing ceremony was presided over by Aamir Khan, Chairman of the Securities and Exchange Commission of Pakistan (SECP), and took place at the CDC House in Karachi.
Highlighting the features of this innovative platform, Badiuddin Akber, CEO of CDC, stated, “This FinTech solution aims to enhance the investor outreach for Asset Management Companies (AMCs) by leveraging the power of technology to provide a convenient, informative, and interactive medium for investors to invest in a wide range of investment products offered by different mutual funds.”
Dr. Amjad Waheed, Chairman of MUFAP, commended the collaborative efforts of CDC and SECP, noting that this initiative would significantly contribute to the growth of the mutual fund industry. “This digital platform represents a crucial step forward in making mutual fund investments more accessible and efficient for investors across Pakistan,” he said.
Chairman SECP, Aamir Khan, emphasized the strategic importance of this initiative, stating, “This initiative aligns perfectly with SECP’s recommended strategy for the mutual fund industry, which advocates the development of alternate distribution channels and digital platforms. The recent circumstances induced by the pandemic make it all the more urgent for AMCs to undergo complete digital transformation. This platform will facilitate investors from specific market segments and low-risk investors, thus promoting financial inclusion at the grassroots level and fostering a culture of savings in Pakistan.”
The ceremony also featured remarks from Farrukh Sabzwari, Commissioner of the Specialized Companies Division at SECP, and Moin Fudda, Chairman of CDC, both of whom underscored the potential of the digital platform to transform the mutual fund landscape in the country.
The event was attended by senior management from various AMCs and other high-ranking industry officials, including Ms. Khalida Habib, Executive Director of the Specialized Companies Division at SECP. Their presence underscored the broad-based support and enthusiasm for the initiative within the financial sector.
This collaboration between MUFAP and CDC is poised to bring a much-needed technological advancement to the mutual fund industry, offering a seamless and user-friendly experience for investors. The digital platform is expected to drive greater participation in mutual funds, thereby contributing to the overall financial growth and stability of the country.