ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has restrained the Pension Fund Manager, on behalf of the pension fund, to purchase from or sell any security to any connected person or employee of the Pension Fund Manager. The SECP has issued SRO 1069(I)/2021 to make amendments in the Voluntary Pension System Rules, 2005.

According to the revised rules, no Pension Fund Manager on behalf of the pension fund shall purchase from or sell any security to any connected person or employee of the Pension Fund Manager except with the approval of its Board of Directors in writing and consent of trustee.

The obligations as Pension Fund Manager revealed that the Pension Fund Manager shall ensure compliance with the obligations as specified in the regulations and constitutive documents of the pension fund.

A trustee shall also ensure compliance with the obligations as specified in the regulations and constitutive documents. For the purposes of this rule, the expression "independent" means that there shall be no cross-shareholding, or common directorship between the Pension Fund Manager and trustee, the SECP SPO added.

Copyright Business Recorder, 2021