Charge expenses to fund: SECP directs AMCs to submit annual plans to BoDs for approval

The Securities and Exchange Commission of Pakistan (SECP) has directed that Assets Management Companies (AMCs) intending to charge expenses to fund shall submit their annual plan to their board of directors for approval, says an SECP circular (No 5 of 2107) issued here on Tuesday.
According to the SECP, in exercise of powers conferred under section 282B(3) of the Companies Ordinance 1984 read with Regulation 60 (3) (v) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, hereby condition No 5 of Circular No 40 of 2016 is amended.
The condition said that the AMCs, which intend to charge these expenses to fund, shall submit their annual plan to their board of directors for approval. The plan should cover the following at minimum: name of funds in which such expenses will be charged; projected selling and marketing expenses by an AMC from its own sources and maximum expense limit that will be charged; and nature of expenses that will be charged.
The plan for increasing retail outreach by charging such expenses included increase in targeted branch network and net assets; targeted increase in number of investors; targeted sales staff to be increased and targeted distribution arrangement and commission structure and status of achievements of AMC against the last year submitted plan.