Mutual Funds' marketing expenses: SECP proposes revision of conditions

The Securities and Exchange Commission of Pakistan (SECP) has proposed revision in the conditions for charging of selling and marketing expenses to Mutual Funds. According to the amendments proposed by the SECP in Circular No. 40 of 2016, the Commission, in exercise of powers conferred under section 282 B (3) of the Companies Ordinance 1984 read with Regulation 60 (3) (v) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008, hereby makes following further amendments in the condition number 3 of Circular No. 40 of 2016.
The selling and marketing expense can only be used for the following purposes: Firstly, payment of expenses related to development and maintenance of alternative delivery channels/distribution including technology and software development; website development and related advertising; creation of investors online touch points; investors portal and related advertising charges and mobile app and related advertising.
All other conditions prescribed through Circular No 40 of 2016, Circular No 05 of 2017 and Circular No 05 of 2018 shall remain unchanged, the SECP added.