New guidelines for investor firms

ISLAMABAD: Securities and Exchange Commission of Pakistan (SECP) on Monday issued stewardship guidelines for institutional investors, emphasising that the investors would be responsible to their ultimate long-term investors and beneficiaries.

Policies on voting, monitoring and engagement, conflict of interest, and sustainability consideration of investor firms should be designed to protect the interests of their long-term clients and beneficiaries, SECP stated.

The regulator presented the framework to promote long-term value creation and engagement of instructional investors with investee companies.

The guidelines are applicable to the asset management companies, pension fund managers, private fund management companies, life insurers and employees contributory funds managed by the investment advisors with equity holding in listed companies.

Comprising of a set of best stewardship principles, the guidelines provide a stewardship framework to steer institutional investors on effective exercise of their stewardship responsibilities with due regard both to their investors and investee companies It further provides guidance on how to implement each principle and outcome that is expected from applying the principle.