SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN

SPECIALIZED COMPANIES DIVISION

FUND MANAGEMENT DEPARTMENT

No. SCD/CIRCULAR/ 306 /2025 May 21, 2025

Circular No. 11 of 2025

Subject: Amendment in Circular No. 25 of 2024 (Requirements for Investment Plans Offered Under Collective Investment Schemes)

This is further to Circular No. 25 of 2024 dated December 23, 2024 on “Requirements for Investment Plans offered under collective investment schemes”.

The Securities and Exchange Commission of Pakistan (“the Commission”) in exercise of the powers conferred under section 282B(3) of the Companies Ordinance, 1984 read with Regulation 44(8)(proviso) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 (the “Regulations”), hereby makes the following amendments:

i. the first proviso under condition number 1 shall be read as follows:

"Provided that the existing CIS other than those specified above having a Shell Structure prior to the issuance of the Circular, may continue to have only one perpetual investment plan (Plan) within the respective CIS. In case, a CIS has more than one perpetual investment plans, remaining perpetual plans shall either be converted into fixed maturity plans or merged with a similar category of CIS/Plan with a maturity date/completion of merger not later than December 31, 2026. Furthermore, in case of perpetual plans under an active independently launched CIS, all such perpetual plans shall be converted into fixed maturity plans or merged with a similar category of CIS/Plan with a maturity date/completion of merger not later than December 31, 2026. Such conversions from perpetual to fixed maturity plans or merger with similar category of CIS/Plan shall be subject to prior approval of the Commission within one hundred and eighty (180) days from the date of issuance of this Circular or else the plan shall be revoked accordingly:"

ii. after clause 2(a), after the explanation a proviso shall be added as follows:

"Provided that clause 2(a) of the Circular shall have effect only in relation to the eligible categories of CIS under clause 1, with effect from December 23, 2024 and the plans launched prior thereto shall continue to operate."

iii. Clause 5(a) shall be read as follows:

"Management Fee Caps (M-Fee Caps): The M-Fee Caps for respective Investment Plans, as amended under the Regulations for each category of CIS, shall be applicable with effect from July 1, 2025 without exception, in conformity with the corresponding category of the CIS. This application is to be proportionate to the net assets of each Investment Plan under the CIS.

Provided that the earlier Total Expense Ratio Caps for CIS shall remain applicable until June 30, 2025."

(Zeeshan Rehman Khattak)
Commissioner (SCD)

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Distribution:

1. Chief Executives of All Asset Management Companies.
2. Mutual Funds Association of Pakistan.
3. Trustees of Collective Investment Schemes.

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