ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has introduced a Key Fact Statement (KFS) by the Asset Management Companies (AMCs) to their investors.
According to circular number 8 of 2025 issued by the SECP on Monday, the SECP in exercise of its powers conferred under Section 282(B) (3) of the Companies Ordinance 1984 (XLVII of 1984), hereby, directs the AMCs to incorporate a Key Fact Statement (KFS), as second to the title page of the Offering Document 101)) and/ or Supplemental Offering Document (SOD) in case of offering of Investment Plans or amendment in the fundamental attribute, to achieve clarity and ease of understanding for the investors enabling them to make a well-informed investment decision.
KFS shall be subject to the following minimum requirements:
AMCs shall provide the approved version of KFS for each Collective Investment Scheme (CIS) Investment Plan before soliciting new investments.
Each Investment Plan under a CIS shall have a separate KFS:
AMCs shall ensure that KFS for each CIS’ Investment Plan is readily accessible to investors on its website/ online portal, as well as, on the website of its digital distributor(s); AMCs shall ensure that, at the point of sale including through the AMC’s website or a third-party digital portal/ website, investors acknowledge receipt of the KFS and confirm their review and understanding of its contents. This acknowledgment shall be obtained by requiring investors to sign off on the Investment Form for physical transactions and, in the case of online investments, through a pop-up screenshot incorporating a checkbox mechanism that allows investors to either accept or decline after review and validation.
AMCs shall ensure the validity/ correctness of the KFS including the incorporation of any subsequent amendments due to change in the fundamental attributes; AMCs shall continue to make available updated copy of OD’s on its official website and other digital means.
And these requirements shall be applicable from April 30, 2025, for any new CIS/ Investment Plan that has not yet been launched. Additionally, all the existing perpetual CIS/ Investment Plans launched before the date of this Circular, shall ensure compliance until June 30, 2025.
The AMCs shall submit supplemental constitutive documents to the Commission for information within one week from the date of amendments in Mons of Regulation 44(10) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008.
Copyright Business Recorder, 2025
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