SECP extends timeline for AMCs to complete investor’s suitability assessment

To provide mutual fund industry further relief in fulfilling regulatory compliance requirements during COVID-19 pandemic, the Securities and Exchange Commission of Pakistan (SECP) has extended the timeline for Asset Management Companies (AMCs) to meet investor’s suitability assessment requirements, stipulated in Circular No 2 of 2020.

The extended timeline is July 24, 2020, said a press release issued here.

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 were 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.

Source: Radio Pakistan