Securities and Exchange Commission of Pakistan registers MUFAP as an SRO and approves a Digital AMC framework alongside an ETF development committee

The Securities and Exchange Commission of Pakistan has announced a package of initiatives to strengthen Pakistan’s mutual funds industry, including registering the Mutual Funds Association of Pakistan (MUFAP) as a self-regulatory organization, approving a Digital Asset Management Companies (Digital AMC) Framework, and forming a committee to develop exchange traded funds (ETFs). MUFAP’s SRO mandate covers industry development and investor education, business conduct self-regulation, promotion of ethical practices and professional competence, research and standard setting aligned with global best practices, compliance oversight through inspections, dispute arbitration, and investor protection and inclusion. MUFAP will also review constitutive documents such as trust deeds and offering documents, and undertake standardized industry documentation and reporting. The Digital AMC Framework is intended to provide end-to-end digital access to mutual fund investments, broaden retail participation, reduce entry barriers, and support market growth. The ETF committee has been tasked with reviewing the existing framework and international practices and recommending reforms to increase investor participation and remove inefficiencies. Separately, SECP hosted a Mutual Funds Industry Focus Group Session covering priorities including infrastructure finance through mutual funds, liquidity management and governance, modernization of distribution models, women’s financial inclusion, and the use of Systematic Investment Plans for long-term savings. A white paper summarizing the session’s outcomes and an implementation roadmap has been approved by the Commission for circulation.