Regulatory Alerts2025-08-31
Added · Updated
PACRA Assessment Framework for Pension Fund Managers
The Pakistan Credit Rating Agency (PACRA) has issued a comprehensive assessment framework to evaluate the management quality of licensed pension fund managers, specifically targeting life insurance companies operating under SECP’s Voluntary Pension Scheme. The methodology prioritizes qualitative assessments of ownership, governance, management effectiveness, investment risk, and customer relationships, while incorporating financial risk as a quantitative benchmark. By mandating a minimum AM2 asset management rating and emphasizing long-term operational capacity over traditional credit obligations, the framework ensures these entities can reliably fulfill pension fund contributions and manage associated financial risks.
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