Islamabad, June 24, 2020 (PPI-OT): To provide mutual fund industry further relief in fulfilling regulatory compliance requirements during COVID-19 pandemic, the Securities and Exchange Commission of Pakistan (SECP) has extended the timeline for Asset Management Companies (AMCs) to meet investor’s suitability assessment requirements, stipulated in Circular No 2 of 2020. The extended timeline is July 24, 2020.
SECP’s suitability assessment requirements require AMCs to classify the Collective Investment Schemes (CIS) and investment plans with regards to the risk of principle erosion, ranging from very low risk for money market funds to high risk for equity funds.
AMCs are also required to ensure suitability of CIS/Plan to the investor and assess the risk profiles of investors before his/her investment in any specific product or strategy. Effective implementation of AMCs risk profiling mechanism will ensure that the investor makes an informed investment decision while investing in any mutual fund/plan, as per his/her risk profile.
For more information, contact:
Head, Internal and External Communication
Securities and Exchange Commission of Pakistan (SECP)
NIC Building, 63 Jinnah Avenue, Islamabad
Tel: +92-51-9214005 or +92-51-9214009 (Ext. 378)
Fax: +92-51-9206459
Cell: +92-302-8552254
E-mail: shakil.chaudhary@secp.gov.pk
Website: www.secp.gov.pk