SECP to Introduce Digital Asset Management Companies

The Securities and Exchange Commission of Pakistan (SECP) has introduced the concept of Digital Asset Management Companies (AMCs) to promote financial inclusion and simplify investment in AMCs. A concept paper has been published on the SECP website for public consultation in this regard.

SECP to Introduce Digital Asset Management Companies

Digital Asset Management , The Digital AMCs have the potential to facilitate investors and increase the investor base by reducing paperwork, providing services remotely, and leveraging customer data. These companies will provide all AMC services, including the launching of allowed Collective Investment Schemes (CIS), online account opening to issuance and redemption of units, and inter-CIS conversions through digital means, where the investor is no longer required to visit any distribution point physically.

Digital Asset Management The concept note covers areas like challenges faced by brick and mortar AMCs, the potential of digital AMCs in Pakistan, key ambitions underlying the development of Digital AMCs, and critical regulatory challenges. It also proposes a framework for addressing these identified gaps Simultaneously with the publication of this Concept Paper, the SECP is also aiming to test the Digital AMC model in a sandbox testing environment.In Pakistan, there are currently 21 AMCs with assets under the management of Rs. 1.2 trillion. The mutual fund industry in Pakistan has only approximately 320,000 investors (0.14 percent of the total population), which means this segment of capital markets is under-penetrated in comparison to other international jurisdictions.

Source: This news is originally published by propakistani