On the 2nd of June, the Securities and Exchange Commission of Pakistan (SECP) issued guidelines to enhance the Mutual Fund Digital Platforms (MFDP). The project is part of promoting digitization in Pakistan. Along with that, it will also help enhance the investor’s base on the non-banking financial services of Pakistan.
The guidelines that are available on the SECP website will provide principles for design, risk management, governance, client proofing, suitability assessment, issuance of funds, etc. The SECP had earlier this year strengthened its advisory regime by allowing licensed individuals to act as advisors. It is also expected that these measures will help to further broaden the investor’s base. Moreover, it will improve their experience in acquiring digital services in the Pakistani financial sector.
The Digital Distribution Platform will provide a combined platform for investors, financial advisors, and wealth managers. The MFDP is a great initiative for people in the finance industry to get their hands on a wide range of investment products from a single source. The platform will also help individuals compare and contrast different products in the marketplace.
The operations are expected to be in full blow by the middle of this month. Moreover, two more platforms are also currently in the testing phase. These projects are also expected to help investors make more well-informed decisions.
