PHOTO: secp.gov.pk
ISLAMABAD:
The Securities and Exchange Commission of Pakistan (SECP) has reduced the maximum level of sales load from 5% to up to 3% that asset management companies (AMCs) are authorised to charge on sales of mutual fund units.
“No sales load shall be charged if an investor approaches the AMC directly for investment or where purchase transactions are done online,” said a statement issued by the commission.
The requirements also stipulate that AMCs will clearly disclose, at the time of investment, the maximum rate of sales load being charged from the unit-holder. Furthermore, the AMCs are required to obtain signed acknowledgement from the unit-holder to ascertain that all terms and conditions have been read and understood by the unit-holder. AMCs must also disclose to unit-holders, within 48 hours of investment, the fees deducted and net amount invested in the mutual fund in the prescribed format.
Published in The Express Tribune, August 1st, 2015.
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