The Securities Commission of Pakistan (SECP) has revised the specific requirements for the advertising of equity funds to bring quality information on the performance of mutual funds and to support better investment decisions.

The new requirements reduces the problem of errors in social media advertising, especially for mutual funds.

SECP states that announcements that reflect only positive information about the Fund’s activities and do not provide a complete risk profile, benchmarks and important disclaimers may lead to misinterpretations by potential investors.

Circular No. 16 of 2021 issued by the SECP sets out certain conditions for the announcement of capital funds and requires the expected performance/return of the fund to be based on a period of at least twelve (12) calendar months.

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