Circular No. 6 of 2022, June 9th, 2022

SROS: Circular No. 6 of 2022, June 9th, 2022 Requirements for Assessing Suitability and Risk Categorization of Collective Investment Schemes (CIS) SECURITIES AND EXCHANGE COMMISSION OF PAKISTAN SPECIALIZED COMPANIES DIVISION POLICY, REGULATION AND DEVELOPMENT DEPARTMENT No. SCD/CIRCULAR/368/2022 June 9th, 2022 Circular No. 6 of 2022 Subject: Requirements for Assessing Suitability and Risk Categorization of Collective Investment Schemes (CIS) The Securities and Exchange Commission of Pakistan in exercise of the powers conferred under section 282B(3) of the Companies Ordinance, 1984 read with regulation 66A(d) of the Non-Banking Finance Companies and Notified Entities Regulations, 2008 hereby makes the following amendments in Circular No. 2 of 2020 dated February 6, 2020 in supersession of Circular No. 32 of 2020 dated October 22, 2020: AMCs shall classify CIS and investment plans as per the following risk profiles: Category of CIS/ Plans based on investment policy Risk Profile Risk of Principal Erosion Money Market Funds with no exposure in corporate commercial papers Very Low Principal at very low risk Money Market Funds with investment in corporate commercial papers, Capital Protected Funds (non-equity), Income Funds with deposits/placement in A or above rated banks/ DFIs and investment in Government Securities or Government backed Sukuks. Weighted average duration of portfolio of securities shall not exceed six (6) months. Low Principal at low risk Income…