ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) has extended date for Asset Management Companies (AMCs) to comply with mandatory requirement of providing investor’s suitability assessment.
A statement issued on Wednesday the SEPC said that to provide mutual fund industry further relief in fulfilling regulatory compliance requirements during COVID-19 pandemic the regulator has extended the timeline for 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.
