Asset management companies given till July 24 to fulfil regulatory requirements

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has extended the timeline for Asset Management Companies (AMCs) to meet investor’s suitability assessment requirements till July 24, 2020.  

The decision was taken to provide relief to the mutual fund industry in fulfilling regulatory compliance requirements during the Covid-19 pandemic.

SECP’s suitability assessment requirements require AMCs to classify the Collective Investment Schemes (CIS) and investment plans with regards to the risk of principal erosion, ranging from very low risk for money market funds to high risk for equity funds.

AMCs are also required to ensure the suitability of CIS and investment plan to the investors and assess the risk profiles of investors before finalising their investment in any specific product or strategy.

Effective implementation of AMCs risk profiling mechanism ensures that investors make informed investment decisions while investing in any mutual fund/plan, as per their risk profile.

- Advertisement -
- Advertisement -

Must Read

Finance Minister suggests listing of Govt debt securities at PSX to...

ISLAMABAD: The Federal Minister for Finance & Revenue Dr Shamshad Akhtar said that the securities market can play a vital role in the development...