On Jan. 6, PAK SEC introduced regulatory framework re mutual funds.
PAK SEC strengthened regulatory framework for mutual fund industry by specifying detailed requirements for investment plans; also issued circular dated Dec. 23, 2024 on Requirements for investment plans offered under collective investment schemes.
Framework aims to enhance governance, streamline operations, and ensure secure investment horizons, thus fostering retail penetration in the mutual fund industry.
Requirements specify the eligible categories of collective investment schemes (CIS) under which asset management companies (AMCs) can offer investment plans.
Operational requirements provide clear guidelines on maximum number of investment plans, duration, exposure limits, investment restrictions, performance benchmarks.
Mandates specific disclosures for fund of fund CIS and additional risk information.
Obligates AMCs to issue separate investment plan report within fund manager report.
Outlines essential offering guidelines, including subscription timelines and NAV announcements; establishes provisions for total expense ratio, formation costs.
Effectiveness
CIS shall ensure compliance within 180 days of issuance of circular, i.e. Jun. 21, 2025.
