RegAlert

Rule · SECP · 29 Mar 2016

Directive No. 12 of 2016: Inflation-Adjusted Terminal Value of Contributions into a Pension Fund

consumer
disclosure

All Pension Fund Managers must disclose the inflation-adjusted terminal value of contributions when selling voluntary pension schemes, and their website calculators must provide inflation-adjusted terminal values. The inflation rate for adjusting returns will be specified by the Commission. The directive takes effect 1 July 2016, and non-compliance attracts penal action under the Companies Ordinance, 1984.

PakistanSecurities and Exchange Commission of Pakistan

Securities and Exchange Commission of Pakistan Specialized Companies Division Policy, Regulation and Development Department

No. SCD/PRDD/VPS/Directive /2016/139

March 29, 2016

Directive No. 12 of 2016

Subject: Inflation-adjusted terminal value of contributions into a Pension Fund

Pension Fund Managers (‘PFMs’) use illustrative values to solicit contributions in pension funds set up under the Voluntary Pension System Rules, 2005. However, the resultant value of accumulated contribution is not adjusted for inflation. In order to bring uniformity among PFMs in presenting illustrative values, to make illustrations more understandable and to ensure that illustrations do not mislead investors, all PFMs are directed in terms of 282 D of the Companies Ordinance 1984, to disclose the inflation adjusted terminal value of contributions at the time of selling of voluntary pension schemes so as to enable investors to make informed decisions. The rate of inflation for adjusting the returns will be specified by the Commission. The PFMs shall ensure that formulae available on the websites for calculating terminal values of contributions must provide for inflation-adjusted terminal values.

This directive shall come into force with effect from 1st July 2016. Any non-compliance with this directive shall attract penal action as provided under the Companies Ordinance, 1984.

(Imran Inayat Butt)
Executive Director (SCD)

Distribution:

1) All Pension Fund Managers

2) Mutual Funds Association of Pakistan

3) Trustees of Pension Funds

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Annotations and obligations
2 obligations · 7 definitions
  • Obligation 2
  • Definition / condition 7
  • background, boilerplate

Lineage: No known changes

RegAlert holds no document that amends or replaces this one. This is not a check that it is in force: confirm with the regulator.

D of the Companies Ordinance 1984Not in RegAlertD of the Companies Ordinance 1984 — Not in RegAlertVoluntary Pension System Rules,2005Not in RegAlertVoluntary Pension System Rules, 2005 — Not in RegAlertDirective No. 12 of 2016:Inflation-Adjusted Terminal V…2016-03-29 · this documentDirective No. 12 of 2016: Inflation-Adjusted Terminal Value of Contributions into a Pension Fund (2016-03-29)
amendssupersedesissued underrefers todashed card: not in RegAlert (or proposed)arrows run from the older text to the one that changes it
The links and the sentences they come from (2)
Issued under
  • D of the Companies Ordinance 1984Not in RegAlert

    “all PFMs are directed in terms of 282 D of the Companies Ordinance 1984, to disclose the inflation adjusted terminal value of contributions”

  • Voluntary Pension System Rules, 2005Not in RegAlert

    “Pension Fund Managers (‘PFMs’) use illustrative values to solicit contributions in pension funds set up under the Voluntary Pension System Rules, 2005.”

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