{
  "id": 12597724,
  "title": "SECP Introduces Passive Equity Sub-Fund under Voluntary Pension Scheme",
  "url": "https://urgent.news/2026/10/07/secp-introduces-passive-equity-sub-fund-under-voluntary-pension-scheme",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-07T09:59:09.000Z",
  "source": {
    "name": "Business Recorder",
    "slug": "business-recorder",
    "url": "https://www.brecorder.com/news/40443090/secp-introduces-passive-equity-sub-fund-under-voluntary-pension-scheme"
  },
  "original_language": "en",
  "account": "The Securities and Exchange Commission of Pakistan (SECP) has launched a Passive Equity Sub-Fund as part of the Voluntary Pension Scheme (VPS) framework, set to be available starting January 1, 2027. This new sub-fund will be automatically offered alongside the current equity, debt, and money market sub-funds, giving savers the option between actively managed and passively managed equity funds that mirror a chosen market index. Pension fund managers can oversee the Passive Equity Sub-Fund either by mirroring a market index or by investing in Exchange Traded Funds (ETFs). The ETF-based pathway enables managers to invest in equity ETFs available on the Pakistan Stock Exchange (PSX), thereby offering diversified exposure to the equity market, according to the SECP. The management charge for an ETF-based Passive Equity Sub-Fund is capped at 0.75% annually. If a pension fund manager opts to invest in ETFs managed by their own asset management company, there will be no extra management charge, thereby avoiding two layers of management fees on the same investment. SECP Chairman Dr Kabir Ahmed Sidhu highlighted that the introduction of Passive Equity Sub-Funds will grant pension savers more choice in managing their retirement funds and provide a cost-effective method to engage in the stock market. He further stated that this reform will encourage broader participation in the voluntary pension system and bolster long-term retirement savings. The measure aims to broaden accessible and cost-effective investment opportunities for long-term retirement savings and reinforce Pakistan's voluntary pension scheme.",
  "summary": "The Securities and Exchange Commission of Pakistan (SECP) has introduced a Passive Equity Sub-Fund under the Voluntary Pension Scheme (VPS) framework, which will be offered by pension fund managers from January 1, 2027. According to a statement, the new sub-fund will be mandatorily offered alongside existing equity, debt and money market sub-funds, giving savers the choice between actively…",
  "key_points": [
    "SECP launches Passive Equity Sub-Fund under Voluntary Pension Scheme starting Jan 1, 2027",
    "Managers can mirror market index or invest in ETFs on Pakistan Stock Exchange",
    "Management charge capped at 0.75% annually, no extra fees for in-house ETF investment"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}