Islamabad—The Securities and Exchange Commission of Pakistan (SECP) has directed all asset management companies (AMCs) to provide a right to individual unitholders to obtain a refund of their first time investment (cooling-off right) in an open end collective investment scheme (CIS). The refund may be obtained within three business days commencing from the date of issuance of investment report to the unitholder (cooling-off period), said a statement received here Thursday.
The requirements stipulate that the cooling-off right, cooling-off period and procedure to exercise such right shall be adequately disclosed in the investment form signed by the unitholder at the time of purchase of units. Further, the refund for every unit held by the unitholder shall be an amount equal to net asset value per unit applicable on the date the cooling-off right is exercised along with any sales load paid by the unitholder.
The refund proceeds shall be paid within six business days of receipt of written request from the unitholder. In order to provide investors with key information about a fund in a simple and accessible format prior to making an investment decision, the AMCs are required to ensure that the investor is either provided with the latest Fund Manager Report for existing CIS or a basic fact sheet in case of new CIS.