SECP has met all FATF conditions, says chairman

Published October 7, 2020
KARACHI: SECP Chairman Amir Khan rings the bell to mark the launch of Exchange Traded Funds on Tuesday.—PPI
KARACHI: SECP Chairman Amir Khan rings the bell to mark the launch of Exchange Traded Funds on Tuesday.—PPI

KARACHI: Securities and Exchange Commission of Pakistan Chairman (SECP) Amir Khan on Tuesday said that all the requirements of Financial Action Task Force (FATF) have been met and suspicious transactions related to money laundering and ­terror financing are being monitored efficiently.

“All the conditions of FATF have largely been met, there is no regulatory requirement pending in this regard and there is a strong focus on money laundering and supervision process is very vigilant,” Khan said at the gong ceremony of Exchange Traded Funds (ETF) at PSX.

The ETF is an investment product which combines the returns offered by the stock market with the diversity of mutual funds.

The newly launched ETFs are NIT Pakistan Gateway Exchange Traded Fund, UBL Pakistan Enterprise Exchange Traded Fund, Meezan Pakistan Exchange Traded Fund, and NBP Pakistan Growth Exchange Traded Fund.

The SECP has supported the idea for creating competitive and efficient playing field to ETF by addressing tax disparities, achieving tax credit and allowing investments in ETF through Special Convertible Rupee Account.

Speaking at the occasion, the chairman said that SECP is also taking measures to encourage more market makers to come up, increasing awareness for expanded outreach of ETFs and working to make them available not just at the “Ready Counter”, but at each and every counter including futures, margin trading systems, etc.

He said the successful launch of ETFs has confirmed the appetite in market for new products. SECP focused at encouraging new listings in the stock market, promoting capital formation and facilitating ease of doing business.

SECP Chairman revealed that another set of ETFs is under process, demonstrating that the market and investors are anticipating growth over the near term. He expressed his confidence that with the growth of ETFs in future, the idea of offering goals-based investment solutions will make further inroads in the financial services sector in Pakistan.

Speaking at the occasion, SECP CEO Farrukh Khan said: “We hope that this product will be a popular source of investment for the public, brokerage houses, asset management companies, and other market participants will play their due role in promoting this product among the savvy investors but also among the novice investors as well.”

Published in Dawn, October 7th, 2020

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