Protecting Small Investors: SECP abolishes upfront commission
SECP has barred the industry from charging investors who make an investment online or directly visit the sales offices
ISLAMABAD:
The Securities and Exchange Commission of Pakistan (SECP) has urged the Mutual Funds Association of Pakistan (MUFAP) to ensure that retail investors are not charged any upfront commission on investments in mutual funds unless these investors have first been fully informed. A statement issued by the SECP here Wednesday said that in order to protect small investors, the SECP has already reduced the maximum upfront commission from 5 to 3%. The SECP has also barred the industry from charging those investors who make the investment online or directly visit the sales offices. The upfront commission is mainly chargeable where the sales staff of an asset management company (AMC) approaches an investor through its own effort.
Published in The Express Tribune, July 21st, 2016.
The Securities and Exchange Commission of Pakistan (SECP) has urged the Mutual Funds Association of Pakistan (MUFAP) to ensure that retail investors are not charged any upfront commission on investments in mutual funds unless these investors have first been fully informed. A statement issued by the SECP here Wednesday said that in order to protect small investors, the SECP has already reduced the maximum upfront commission from 5 to 3%. The SECP has also barred the industry from charging those investors who make the investment online or directly visit the sales offices. The upfront commission is mainly chargeable where the sales staff of an asset management company (AMC) approaches an investor through its own effort.
Published in The Express Tribune, July 21st, 2016.