ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced several transformative initiatives to strengthen and modernize the country’s mutual fund industry. These initiatives include the registration of the Mutual Funds Association of Pakistan (MUFAP) as a Self-Regulatory Organization (SRO), the approval of a comprehensive Digital Asset Management Companies (Digital AMC) Framework, and the formation of a committee for the development of Exchange Traded Funds (ETFs).
With MUFAP now recognized as an SRO, the organization will play a key role in the development of the industry, overseeing business conduct, promoting ethical standards, and enhancing investor education. It will also engage in research, development of industry standards, and dispute resolution, ensuring compliance and fostering financial inclusion.
The approval of the Digital AMC Framework will help drive technological innovation, improve market access, and encourage retail participation by offering end-to-end digital access to mutual fund investments. This framework aims to lower entry barriers for investors and expand opportunities within the sector.
Additionally, the committee formed to review and recommend reforms for the development of ETFs will work to increase investor participation and address inefficiencies in the ETF market.
In recent efforts, the SECP hosted a Mutual Funds Industry Focus Group Session, bringing together industry stakeholders to discuss key priorities, including infrastructure finance, liquidity management, governance, and financial inclusion for women. A White Paper summarizing the session’s outcomes has been approved for circulation, highlighting a roadmap to implement these strategic reforms.
