ISLAMABAD, (NNI): In order to encourage third-party distribution and increase competition in the non-banking financial sector, the Securities and Exchange Commission of Pakistan (SECP) has enhanced sales load limit for Asset Management Companies (AMCs) through circular 10 of 2022.
This relaxation has been made for AMCs selling through a third-party online distribution channel/portal. The limit has been revised upwards from 1.5% to up to 3%, considering the costs that AMCs have to share with the third parties. The relaxation is not applicable on AMCs selling through their own online portals and not sharing any cost with a third-party.
Consolidation through third-party online portals will also assist investor in improved decision making of investors based on comparison between different funds in terms of performance, sales load, Total Expense Ratios etc.
The circular notifying the above relaxation can be accessed at https://www.secp.gov.pk/document/circular-no-9-of-2022-regulatory-framework-for-account-opening-by-amcs/?wpdmdl=45829&refresh=634690dceced01665568988. NNI
