Regulatory Alerts2022-02-28
Added · Updated
Eligibility Requirements to Register as Trustee of Open-End or Closed-End Scheme
The Securities and Exchange Commission of Pakistan mandates that entities registering as trustees of open-end or closed-end schemes must be public limited companies with trustee services as their primary business. These entities must maintain a minimum equity of Rs. 100 million or 0.10% of net assets under trusteeship, whichever is higher, and have a major shareholder that is a financial institution or insurer with at least Rs. 1 billion in net equity and a credit rating of AA- or A depending on the institution type. Any shareholding change of ten percent or more, as well as the appointment of the Board of Directors, major shareholders, and Chief Executive Officer, requires prior Commission approval and compliance with Fit and Proper Criteria. This circular supersedes Circular No. 3 of 2020.