Latest news with #MUFAP
Business Recorder
4 days ago
- Business
- Business Recorder
Further empowerment for MUFAP: Mutual funds to go digital with SECP support
ISLAMABAD: To make mutual funds more accessible to the general public, the Securities and Exchange Commission of Pakistan (SECP) is incentivising digital transformation and further empowering the Mutual Funds Association of Pakistan (MUFAP). In a media briefing held at the SECP Headquarters, Commissioner Zeeshan Rehman Khattak said the SECP has introduced a series of regulatory and developmental measures to reinforce the mutual funds industry and foster financial inclusion. He reaffirmed the commission's commitment to investor protection, operational efficiency, and regulatory alignment with global standards. He emphasized the central role of digitisation in driving innovation within the financial sector. A key initiative is the launch of a Digital Asset Management Companies (AMC) framework, which includes reduced minimum equity and fund size thresholds, fully digital onboarding, and streamlined operations — measures designed to boost innovation and accessibility. In a landmark move, the SECP has registered MUFAP as a Self-Regulatory Organisation (SRO) under the SECP Act, 1997—the first such designation in Pakistan's financial services industry. The MUFAP will now assist in regulatory development, member compliance, and investor outreach, helping build trust and transparency across the sector. To shape the future roadmap of the Mutual Fund industry, the SECP recently engaged with key industry stakeholders and developed a white paper focusing on key reform areas. These include advancing digital transformation, developing Exchange Traded Funds (ETFs), introducing Environmental, Social and Governance (ESG) and infrastructure funds, and formulating strategies to enhance financial inclusion. The white paper is available on the SECP website. Additionally, a dedicated committee has been formed to accelerate ETF market growth and improve investor participation. These reforms reflect the SECP's proactive approach to strengthening capital markets and ensuring sustainable, inclusive financial development in Pakistan. Copyright Business Recorder, 2025
Business Recorder
02-08-2025
- Business
- Business Recorder
SECP launches strategic steps to transform mutual funds industry
ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has taken several strategic initiatives to strengthen Pakistan's mutual funds industry. These measures included 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) in Pakistan. These steps aim to facilitate market development, enhance investor confidence, improve transparency, and promote financial inclusion. By being recognized as an SRO, the MUFAP will now play a pivotal role in industry development, investor education, and self-regulating the business conduct of the mutual fund sector. The MUFAP's expanded mandate includes promoting ethical practices and professional competence within the industry, conducting and sharing research, assisting in the development of industry standards aligned with global best practices, overseeing compliance through inspections, arbitrating disputes, and supporting financial inclusion, investor outreach, and education while implementing measures for investor protection. Additionally, the MUFAP will review constitutive documents such as trust deeds and offering documents, undertake standardized industry documentation and reporting, and ultimately lay the groundwork for a more responsive, transparent, and investor-friendly mutual fund ecosystem. The approval of the Digital AMC Framework will enable technological innovation, broaden market access, and foster industry growth by reducing entry barriers, expanding retail participation, and providing end-to-end digital access to mutual fund investments. Furthermore, the committee for ETF development has been tasked with reviewing the existing framework and international best practices to recommend reforms aimed at increasing investor participation and eliminating inefficiencies hindering the growth of this segment. Recently, the SECP hosted a Mutual Funds Industry Focus Group Session, bringing together key stakeholders and industry professionals. The session gathered input on strategic priorities, including expanding infrastructure finance through mutual funds, enhancing liquidity management and governance, and modernizing distribution models. It also addressed structural and cultural barriers to women's financial inclusion and explored the promotion of Systematic Investment Plans (SIPs) as a tool for disciplined, long-term savings. A White Paper summarizing the session's outcomes, along with a roadmap for implementing key recommendations, has been approved by the Commission for circulation. Copyright Business Recorder, 2025
