The Securities and Exchange Commission of Pakistan (SECP) has released an updated Master Circular for Asset Management Companies (AMCs) and Investment Advisers (IAs), bringing together the latest regulatory requirements into a single document to simplify compliance for Pakistan’s mutual fund industry.
According to the regulator, the revised Master Circular consolidates all applicable circulars, directives, and clarifications issued up to June 30, 2026, providing a comprehensive reference for market participants.
Covers Latest Regulatory Reforms
The updated circular incorporates several recent regulatory developments, including provisions relating to Infrastructure Funds, Environmental, Social and Governance (ESG) Funds, Investment Plans, Digital Asset Management Companies (Digital AMCs) and digital investor onboarding through regulated financial institutions.
It also reflects updated rules covering increased investment limits for low-risk investors, performance benchmarks, Key Fact Statement (KFS) requirements, standardised trust deed formats, and the Market Development Fund.
The SECP said the consolidated document is intended to make it easier for AMCs and investment advisers to comply with regulatory obligations by reducing the need to consult multiple circulars.
Comprehensive Guidance for Mutual Funds
The Master Circular brings together regulatory guidance issued between January 6, 2009, and June 30, 2026, covering the supervision of Collective Investment Schemes (CIS), mutual funds, and investment advisory services.
It also outlines regulatory requirements across a broad range of operational and governance areas, including:
- Digitisation initiatives
- Advertising and marketing guidelines
- Categorisation of Collective Investment Schemes
- Approved investment avenues
- Disclosure and reporting standards
- Constant Proportion Portfolio Insurance (CPPI)-based schemes
- Exchange Traded Funds (ETFs)
- Performance benchmarks
- Fund distribution and sales practices
- Sales charges
- Valuation and provisioning
- Professional certification requirements for Non-Banking Finance Companies (NBFCs)
- Outsourcing arrangements
- Risk management and compliance
- Mergers of open-end schemes
- Unit holders’ meetings
- Separately managed accounts
- Closed-end investment schemes
Existing Circulars Will Prevail in Case of Conflict
The SECP clarified that if any inconsistency arises between the Master Circular and an individual circular, the provisions of the relevant circular will take precedence.
The regulator said the updated Master Circular is available on the SECP’s official website, providing asset management companies and investment advisers with a single, consolidated source of regulatory guidance.
