SECP launches Digital AMC framework

August 8, 2025 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has unveiled a wide-ranging package of reforms to strengthen the mutual funds industry, such as the introduction of a Digital Asset Management Companies (AMC) framework.

The AMC framework introduces reduced minimum equity and fund size requirements, fully digital investor onboarding, and streamlined operations which enables more inclusive participation and encouraging the entry of tech-driven players into the market.

The SECP has also formally registered MUFAP as a Self-Regulatory Organization (SRO) under the SECP Act, 1997 the first such designation in Pakistan’s financial services industry.

MUFAP will now have a broader role in shaping regulatory practices, monitoring member compliance, and enhancing investor education and outreach.

This move is expected to increase industry transparency and foster greater investor confidence.

Furthermore, it has collaborated with key stakeholders to develop a comprehensive white paper.

This document focuses on several strategic priorities, including the advancement of digital platforms, the development of Exchange Traded Funds (ETFs), the introduction of Environmental, Social, Governance (ESG), infrastructure funds, and the formulation of targeted strategies to boost financial inclusion.

The white paper is available to the public on the SECP's official website.

In support of ETF development, the SECP has formed a specialized committee tasked with driving growth in the ETF market.

The committee will work on identifying and removing structural barriers, promoting investor participation, and supporting the launch of innovative ETF products that meet evolving market needs.

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