Islamabad, March 28, 2025 – The Securities and Exchange Commission of Pakistan (SECP) has introduced a significant regulatory measure, making it mandatory for Asset Management Companies (AMCs) to issue Key Fact Statements (KFS).
This initiative aims to enhance transparency, improve investor awareness, and facilitate informed investment decisions.
Under the newly implemented requirements, AMCs must ensure that every Collective Investment Scheme (CIS) and Investment Plan has a dedicated KFS, which will provide investors with crucial insights into their investment options. The SECP has emphasized that these Key Fact Statements should be easily accessible through the AMC’s website, digital platforms, and the websites of digital distributors to ensure widespread availability.
The KFS will offer investors a structured breakdown of essential fund details, including investment objectives, permissible investment avenues, minimum investment requirements, fund duration, performance benchmarks, and terms of subscription and redemption. Moreover, the KFS will clearly define applicable charges, highlight the Total Expense Ratio (TER) from the Fund Manager Report, and provide transparency regarding associated costs.
Additionally, the KFS will include information about key stakeholders such as the AMC, Trustee, and Shariah Advisor (if applicable), along with their contact details. This level of structured disclosure will enable investors to assess fund attributes, associated risks, and expected returns, fostering greater confidence in the investment landscape.
The SECP has outlined a phased implementation plan for these requirements. All new CIS/Investment Plans that are yet to be launched must comply by April 30, 2025, while existing perpetual CIS/Investment Plans have until June 30, 2025, to meet the new standards. Additionally, AMCs will be required to submit supplemental constitutive documents to the SECP within a week of any amendments to ensure continuous regulatory compliance.
With this regulatory move, the SECP reaffirms its commitment to investor protection, enhanced transparency, and improved governance within the mutual fund industry. By enforcing these disclosure measures, the SECP seeks to strengthen investor confidence and ensure that AMCs operate with the highest standards of integrity and accountability.