Islamabad :- The Chairperson of the Securities and Exchange Commission of Pakistan (SECP), Akif Saeed, met with the senior management of Asset Management Companies (AMCs), the Central Depository Company of Pakistan, and the Chief Executive Officer of the Mutual Funds Association of Pakistan.
A key agenda item was promoting cost efficiency in the mutual funds industry by exploring options to outsource relevant functions to specialized service providers. Participants appreciated the concept, noting its potential to reduce costs, standardize user experiences, and enhance transparency in critical functions like NAV calculation, while leveraging fintech benefits. This initiative would allow the industry to focus on its core activities of fund management and intensify efforts toward investor outreach and efficient product distribution. This aligns with the SECP’s overarching goal of a “mutual fund for masses” and would lower entry barriers for new entrants. A similar model has been successfully implemented in the brokerage industry through the introduction of Professional Clearing Members.
Following discussions, it was agreed to form a working group comprising the SECP, market participants, trustees, and fintech companies. The group will review the proposal in detail, engage with relevant stakeholders, analyze the impact of technological evolution—including blockchain—and recommend a way forward within 60 days.
Another key agenda item focused on increasing liquidity in Exchange Traded Funds (ETFs). It was noted that ETFs, by virtue of their ability to mimic the returns of multiple securities and their low-cost structure, are ideally poised to meet diverse investor needs and are crucial for expanding investor outreach. The SECP has already formed a committee of market participants, the Pakistan Stock Exchange, CDC, NCCPL, and stock brokers to review the product, identify practical issues hindering its growth (such as large lot sizes and inefficient distribution), and propose solutions. The committee has finalized its proposals and will submit its report shortly. The SECP assured its full support in implementing the committee’s recommendations.
The meeting concluded with a commitment from all participants to actively pursue product innovation, efficiency, transparency, and increased investor outreach through mutual collaboration and support.
Sohail Majeed is a Special Correspondent at The Diplomatic Insight. He has twelve plus years of experience in journalism & reporting. He covers International Affairs, Diplomacy, UN, Sports, Climate Change, Economy, Technology, and Health.
