Answer ... Alternative investment funds (AIFs), AIF managing entities, fund managers, trustees and custodians must be licensed in Pakistan by the SECP under the AIF regulatory framework.

Answer ... Mutual funds: The NBFC regulatory framework provides that no mutual fund may be offered to the public or continued unless:

• the AMC submits the draft trust deed together with the name and consent of the trustee of the mutual fund in the prescribed form for the principle approval of the SECP;
• upon receipt of principle approval of the SECP, the trust deed is executed and registered in terms of the Trusts Act and thereafter an application for registration is submitted to the SECP in the prescribed form together with evidence of payment of the requisite fee;
• upon receipt of the aforesaid application, it is authorised by the SECP and registered as a notified entity with the SECP.

Private funds: A private fund may be granted a licence by the SECP upon satisfaction of various conditions including the following:

• it is established as (a) a trust under the Trusts Act and registered under the Registration Act, (b) a company under the Companies Act, (c) a limited liability partnership under the Limited Liability Partnership Act, 2017, or (d) any other legal structure approved by the SECP;
• it has a minimum prescribed equity raised through private placement;
• for the purpose of managing its entire business, it has entered into a contract, in writing, with a duly licensed private fund management companies and a copy of which has been filed with the SECP;
• an application has been submitted in the prescribed form to the SECP, along with the relevant supporting documents;
• evidence of payment of the requisite application fee has been submitted to the SECP;
• it has been registered as a notified entity with the SECP;
• it is offered for subscription by statutorily defined eligible investors only (i.e. strategic investors and high-net-worth individuals); and
• its units are not listed on any stock exchange.

Real estate investment trust (REIT) schemes, Modarabas and pension funds: Similar SECP-regulated registration and licensing regimes apply to REIT schemes, Modarabas and pension funds under the AIF regulatory framework. While the registration and licensing regimes involve rigorous scrutiny of promoters, directors and other AIF stakeholders to protect the interests of investors/subscribers, the registration and licensing process is reasonably expeditious and transparent.

Answer ... Please see question 3.2 with regard to the registration and licensing process.

While the timelines for registration and licensing may vary depending on the type of AIF, the entire process is typically concluded within three to four months.