MUFAP gains SRO status, sets new benchmark for fund sector

August 08, 2025 (MLN): The Mutual Funds Association of Pakistan (MUFAP) has achieved formal registration as a Self-Regulatory Organization (SRO) under Section 36D of the Securities and Exchange Commission of Pakistan (SECP) Act.

MUFAP is the first Section 42 company in the country to receive this status, ushering in a new era of empowered, industry-led governance and accountability in the fund management and pension sector.

This move marked a significant shift from traditional trade body functions to a more empowered role in overseeing market conduct enforcing ethical standards and driving long-term sectoral reforms.

As an SRO, MUFAP will now play a central role in compliance monitoring industry inspections, dispute resolution, investor protection, and education core regulatory functions previously handled exclusively by the Securities and Exchange Commission of Pakistan (SECP).

MUFAP has outlined a structured phased approach to implement its expanded mandate with plans to roll out standardized documentation such as trust deeds, offering documents, Key Fact Statements and Fund Manager Reports in line with global best practices.

It will also establish formal mechanisms for grievance redressal and arbitration to address investor complaints efficiently and transparently, as per the press release issued by MUFAP.

The Association has also committed to leading public education and outreach efforts particularly targeting financially underserved segments such as women and youth with a view to promoting financial inclusion and informed investing.

At its board meeting on August 7, MUFAP leadership thanked the SECP for its trust and reiterated its commitment to aligning closely with the regulator’s vision. The transition to self-regulation they noted would be managed with institutional readiness and operational depth.

The development is viewed as a major milestone in building investor confidence improving regulatory responsiveness and maturing Pakistan’s fund management ecosystem.

By taking on the dual role of industry advocate and frontline regulator MUFAP is poised to foster a more transparent, responsible, and growth-driven market landscape.

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