SECP issues master circular for asset management companies and investment advisers

In order to facilitate the asset management industry and ensure compliance with statutory/regulatory requirements in an efficient manner, the Securities and Exchange Commission of Pakistan (SECP) has issued an updated Master Circular for Asset Management Companies (AMCs) and Investment Advisers (IAs).

The Master Circular is a compilation of all applicable circulars, instructions and clarifications issued by the SECP from time to time for the regulation of Collective Investment Schemes (CIS) / Mutual Funds / Investment Advisory Services (IAS).

The main circular covers issues related to digitisation, advertisements, categorization of CIS and investment avenues, disclosure requirements, CPPI schemes, exchange traded funds (ETFs), performance benchmarks for the CIS and the sale and marketing of CIS.

It also covers sales load and expenses, valuation and procurement, mandatory certifications for NBFC professionals and distribution of CIS Units, outsourcing arrangements, risk management and compliance, merger of open source systems, process for the meeting of shareholders, separate management of accounts and closed systems.

In the event of any inconsistency between the main circular and the applicable circular, the contents of the relevant circular shall prevail. The said General Circular is available on SECP website.



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