Regulatory Alerts2025-01-31
Added · Updated
Amendments to NBFC Regulations 2008 introducing Digital Asset Management framework
The Securities and Exchange Commission of Pakistan introduces a Digital Asset Management Company (Digital AMC) framework within the Non-Banking Finance Companies and Notified Entities Regulations, 2008. Fund Management NBFCs must comply with specific governance, IT, and cybersecurity requirements, including board expertise in emerging technologies and the establishment of an IT and Digital Risk Management Committee. Digital AMCs are mandated to maintain a minimum retail investor mix of 70% of Assets Under Management for open-end Collective Investment Schemes and adhere to a Total Expense Ratio at least 0.50% below standard caps. The regulations also impose minimum fund size thresholds, cooling-off periods for investors, and strict disclosure and cybersecurity audit obligations for digital platforms.