The Securities and Exchange Commission of Pakistan (SECP) has revoked the asset management services license of the National Asset Management Company (NAMCO) after the company failed to comply with agency’s regulations.
In addition, SECP has slammed the company with fines of PKR1m ($10,154.35) and PKR150,000 ($1,523.15) against each of its directors, citing the move as a step to safeguard the interest of unit/certificate holders.
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NAMCO manages two funds – a closed-end fund NAMCO Balanced Fund (NBF) and an open-end scheme NAMCO Income Fund (NIF).
NAMCO has failed to comply with the minimum equity requirement, non-conversion of NBF into an open-end scheme despite approval of its certificate holders in January 2013, non-adherence of NIF to minimum prescribed fund size and failure to appoint chief executive officer and directors to the board within the prescribed time period.
The SECP had earlier issued notices in November 2013 and February 2014 to the NAMCO’s Board of Directors, granting them opportunities to explain itself. However, it was concluded that NAMCO knowingly and will-fully violated the provisions of the prevalent regulatory framework.
Cancelling the NAMCO’s license for the business of asset management services, SECP has directed the MCB Financial Services (MCBFSL), the trustee of NIF and NBF to immediately take control of the company’s funds and arrange for the transfer of their management rights to another asset management company.
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