SECP Rolls Out New Regulations to Enhance Mutual Fund Transparency

The Securities and Exchange Commission of Pakistan (SECP) has introduced a series of regulatory and developmental measures to reinforce the mutual funds industry and foster financial inclusion.

Commissioner Mr. Zeeshan Rehman Khattak reaffirmed the Commission’s commitment to investor protection, operational efficiency, and regulatory alignment with global standards. He emphasized the central role of digitization 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 Organization (SRO) under the SECP Act, 1997—the first such designation in Pakistan’s financial services industry. 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 ESG and infrastructure funds, and formulating strategies to enhance financial inclusion.

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.