New consolidated framework brings together all regulatory requirements for asset management companies and investment advisers up to June 30, 2026.
The Securities and Exchange Commission of Pakistan (SECP) has released an updated Master Circular aimed at streamlining regulatory compliance for the country’s mutual fund industry.
The initiative is designed to provide Asset Management Companies (AMCs) and Investment Advisers (IAs) with a comprehensive and consolidated reference document containing all applicable regulatory requirements.
The revised SECP Master Circular integrates all circulars, directives, and clarifications issued by the regulator up to June 30, 2026.
By bringing these requirements into a single document, the SECP seeks to improve regulatory clarity, enhance operational efficiency, and support the continued growth of Pakistan’s investment management sector.
According to the regulator, the updated circular incorporates several important policy and regulatory developments introduced in recent years. These include provisions related to Infrastructure Funds, Environmental, Social and Governance (ESG) Funds, Investment Plans, and Digital Asset Management Companies.
It also covers regulations concerning the digital onboarding of investors through regulated financial institutions, expanded investment limits for low-risk investors, performance benchmark standards, Key Fact Statement (KFS) requirements, trust deed formats, and the Market Development Fund.
The Master Circular serves as a consolidated repository of all circulars, directions, and clarifications issued by the SECP between January 6, 2009, and June 30, 2026. It governs the regulation of Collective Investment Schemes (CIS), mutual funds, and investment advisory services operating in Pakistan.
The updated framework addresses a wide range of industry matters, including digitization initiatives, advertising guidelines, categorization of collective investment schemes, disclosure standards, and approved investment avenues.
It also provides guidance on Constant Proportion Portfolio Insurance (CPPI)-based schemes, Exchange Traded Funds (ETFs), performance measurement standards, sales and marketing practices, sales load structures, valuation methodologies, and provisioning requirements.
Additionally, the circular outlines rules regarding professional certifications for Non-Banking Finance Companies (NBFCs), distribution of mutual fund units, outsourcing arrangements, risk management, compliance obligations, mergers of open-end schemes, unit holders’ meetings, separately managed accounts, and closed-end investment schemes.
The SECP clarified that in the event of any inconsistency between the Master Circular and an individual circular, the provisions of the relevant circular will take precedence. The updated document is expected to enhance regulatory transparency and facilitate smoother compliance across Pakistan’s mutual fund industry.