The Securities and Exchange Commission of Pakistan (SECP) regulates mutual funds under The Non-Banking Finance Companies (Establishment and Regulation) Rules, 2003 and the Voluntary Pension Funds under the Voluntary Pension System Rules, 2005.

Asset management companies/ Investment Adviser are required to be registered with the SECP before commencement of business. Asset Management Companies are further required to register as a Pension Fund Manager with the SECP to manage pension funds.

The SECP approves the constitutive documents of both mutual funds and pension funds and regulates all operational areas, including the approval of appointment of directors and chief executive of asset management company, public offer, including advertisements and other invitations to invest, investment policy, accounting disclosures, audit and remuneration of asset management company. SECP has the authority to impose penalties on asset management companies and cancel their registration if, in the opinion of SECP, justification exists.