The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for all investment advisors and distributors of mutual and pension funds to obtain membership of the Mutual Funds Association of Pakistan (MUFAP).
The objective is to protect investors by ensuring that all market intermediaries follow a single Code of Conduct and operate under a standardized regulatory framework.
This step aims to reduce mis-selling, improve transparency, and give investors greater confidence that their financial interests are safeguarded. It will also provide a formal system for handling complaints and resolving disputes.
The requirement applies to Licensed Investment Advisors, Licensed Securities Advisors, and distributors working with Asset Management Companies and Pension Fund Managers. As a Self-Regulatory Organization, MUFAP will facilitate membership and ensure compliance across the industry. By bringing all advisors and distributors under one platform, the initiative will improve oversight, promote professional standards, and streamline market practices.
The move also supports capacity building and continuous professional development of financial intermediaries, helping them follow best practices and stay aligned with market developments. The directive is expected to strengthen investor protection, improve market discipline, and support the development of a more transparent and reliable mutual fund sector in Pakistan.
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