Regulatory Alerts2022-06-10
Added · Updated
Circular No. 6 of 2022 - Requirements for Assessing Suitability and Risk Categorization of Collective Investment Schemes (CIS)
Asset Management Companies must classify Collective Investment Schemes and investment plans into five specific risk profiles ranging from Very Low to High based on their investment policies and portfolio constraints. The classification mandates specific limits, such as a maximum weighted average duration of six months for Low risk funds and two years for Moderate risk funds, alongside defined equity exposure mandates for High risk categories. All Asset Management Companies are required to implement these new risk categorization standards within 60 days of the circular's issuance on June 1, 2022.
Topics
Share