CISs, REITs and private funds: Companies providing trustee services to be considered FSCs: SECP

The Securities and Exchange Commission of Pakistan (SECP) Monday announced that any company, engaged in providing trustee services to Collective Investment Schemes (CISs), Real Estate Investment Trusts (REITs) or private funds shall be considered as Financial Services Company (FSC).

According to SRO 116 (I)/2020 issued by the SECP here on Monday, the SECP in exercise of the powers conferred under sub-section (3) of section 282B of the Companies Ordinance, 1984 read with clause (xxa) of sub-rule (1) of rule 2 of the Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 (the Rules) has notified that any company, engaged in providing trustee services to collective investment schemes, real estate investment trusts or private funds, for the purposes of the said rules, shall be considered as financial services company within the meaning of clause (xxa) of sub-rule (1) of rule 2 of the said rules.

This notification shall not, in any manner, be deemed to entitle any company to carry on or indulge in provision of any financial services or other activities, which are required to be undertaken with prior authorization or permission or license by the commission under the SECP Act 1997 or any administered legislation or under any other law administered by any other regulatory authority including the State Bank of Pakistan, the SECP added.

Under SRO 117 (I)/2020 issued by the SECP here on Monday, the SECP had issued draft amendments to the Private Funds Regulations, 2015 in line with the Securities and Exchange Policy Board's directive.

The SECP has proposed Rs250,000 as fee for making application (Form-I) for permission to form Private Fund Management Company; Rs500,000 fee for application (Form-II) for license to carryout Private Equity and Venture Capital Fund Management Services and the SECP has proposed zero fee for filing application (Form-III) for renewal of license to carry out Private Equity and Venture Capital Management Services.

The SECP has proposed Rs500,000 as fee for filing application for registration of a private fund and annual fee for private fund has been proposed to be Rs250,000.

The schedule of fee revised as per the direction of the Securities and Exchange Policy Board vide SRO 1620(I)/2019, dated December 24, 2019, the SECP added.

Under SRO 118 (I)/2020 issued by the SECP here on Monday, the SECP has issued draft amendments to the Real Estate Investment Trust Regulations, 2015.

According to the notification, the SECP has set fee of Rs250,000 for filing application for permission to form an REIT Management Company (RMC); Rs500,000 fee for filing application for license to undertake or carry out an activity or function and zero fee has been proposed for making application for renewal of license to carry out an activity or function.

The SECP has proposed Rs500,000 fee for making application for registration of a REIT scheme.