On Feb. 6, PAK SEC discussed reforms for mutual and pension funds.
PAK SEC conducted a consultation session with representatives from the Mutual Funds Association of Pakistan, asset management companies, and pension fund managers.
Namely, with respect to regulatory reforms for mutual as well as pension funds.
Document dated Feb. 6, 2025, received from PAK SEC Feb. 7, summarized on Feb. 11.
Discussion Details
Session focused on proposed amendments to the Non-banking finance companies and notified entities regulations 2008, aiming to rationalize costs for retail investors.
Key decisions included replacing total expense ratio capping with management fee capping, disallowing indirect expense reimbursements, mandating expense disclosures.
Also proposed a market development fund to promote investor education and a digital strategy to enhance fintech integration, payment solutions, and financial inclusion.
PAK SEC aims to streamline customer onboarding by reducing documentation, improving usability; Shariah compliance for mutual, pension funds will be mandated.
The reforms aim to create transparent, efficient, investor-friendly mutual and pension fund industry that strengthens the financial ecosystem and promotes economic growth.
Effectiveness
Proposed amendments will be effective from Jul. 1, 2025.
