Islamabad: The Securities and Exchange Commission of Pakistan (SECP) has initiated a public consultation to overhaul the regulatory framework for mutual and pension funds, aiming to enhance transparency, equity, and returns for investors.
According to Securities and Exchange Commission of Pakistan, the newly released consultation paper proposes significant changes to the Total Expense Regime (TER) and distribution models for these funds. The revisions are intended to lessen the financial impact on retail investors, improve their long-term gains, and foster more efficient savings habits, thereby increasing retail market penetration.
The consultation document, available on the SECP’s website, is divided into three sections: reviewing the current TER framework for mutual funds, assessing the TER for pension funds, and examining the distribution networks that affect retail participation. The paper suggests modifications to ensure that fund managers’ expenses are transparent and equitable, and it proposes a new distribution framework to make investment options more accessible to the average investor.
The proposed changes aim to align Pakistan’s fund management practices with international standards and maximize the benefits for pension fund participants. SECP has invited comments and feedback from the public and stakeholders to refine these regulatory updates and create a more effective, transparent, and fair investment environment. Feedback can be submitted via email to fmd.feedback@secp.gov.pk.