Pension funds: SECP fixes sales charges up to 3 percent of contribution

The Securities and Exchange Commission of Pakistan (SECP) has directed pension fund managers to charge maximum front-end load (sales charges) up to 3 percent of the contribution in case a participant approaches directly for investment.
The SECP has issued direction number 34 of 2017 to the Mutual Funds Association of Pakistan (MFAP) here on Friday regarding front-end fee (sales charge) under the Voluntary Pension System Rules, 2005.
The SECP in exercise of the powers conferred under section 282B (3) of the Companies Ordinance, 1984, read with rule 11 of the Voluntary Pension System Rules, 2005, hereby amends Directive No. 4 of 2015, titled 'Front-end Fee (Sales Charge) Under the Voluntary Pension System Rules, 2005.'
As per new directive, a pension fund manager may charge maximum front-end load up to 3 percent of the contribution if a participant approaches directly for investment, and may charge maximum front-end load up to 1.5 percent of the contribution if an investor carries out transaction online or through a website. All other requirements stipulated under the Directive No. 4 of 2015 shall remain unchanged, the SECP added.