Different class of companies: submission of report for status of compliance mandatory: SECP

The Securities and Exchange Commission of Pakistan (SECP) has made it mandatory for different class of companies including brokerage, power generation, mobile and banking companies and stock exchanges to submit report on status of their compliance with the applicable licensing conditions imposed by the relevant licensing authority.
According to the Companies (Compliance with licensing Conditions) General Order, 2016, issued by the SECP here on Saturday through SRO 1024(1)/2016, the order shall apply to the specified class of companies for the financial year ending on and after June 30, 2016. Under the order, different class of companies are required to submit compliance report with their annual return about its status of compliance with the applicable licensing conditions of relevant licensing authority.
Each company specified in Schedule I of the said Order shall annex with its annual return to be filed with the registrar under section 156 of the Companies Ordinance in Form "A" or Form "B" of Third Schedule of the Ordinance, a compliance report in the form as specified in Schedule II of the Order with respect to its status of compliance with the applicable licensing conditions imposed by the relevant licensing authority, SECP said.
Class of companies required to comply with the applicable licensing conditions imposed by the relevant licensing authority: Companies offering security guard services (licensing/approving authority Ministry of Interior); satellite TV channel companies (licensing/approving authority Pakistan Electronic Media Regulatory Authority); power generation companies (licensing/approving authority National Electric Power Regulatory Authority); LPG marketing companies (licensing/approving authority Oil & Gas Regulatory Authority); mobile, local loop & internet companies (licensing/approving authority Pakistan Telecommunication Authority); Hajj & Umrah companies(licensing/approving authority Ministry of Religious Affairs);construction and housing companies (licensing/approving authority Pakistan Engineering Council); real estate development companies (licensing/approving authority Tehsil/ Taluka Municipal Administration, Development Authority); non-banking finance companies (licensing/approving authority specialized companies division - Securities and Exchange Commission of Pakistan); insurance companies (licensing/approving authority Insurance Division - SECP); associations not for profit under section 42 of the Companies Ordinance, 1984 (licensing/approving authority Company Law Division - SECP); trade organisations under section 43 of the Companies Ordinance, 1984 (licensing/approving authority Director Trade Organisations, Ministry of Commerce); Brokerage companies (licensing/approving authority Securities Market Division - SECP); Stock Exchanges (licensing/approving authority Securities Market Division - SECP); Modaraba Management Companies (licensing/approving authority Registrar of Modarabas) and banking companies (licensing/approving authority is State Bank of Pakistan).
The compliance report shall be signed by the chief executive of the company or at least by two directors authorised on the behalf by the company to do so. The external auditors of the company, before issuance of compliance report by the Company, shall review the same and certify compliance to the board of directors of the Company, through issuance of independent assurance report on compliance report with the licensing conditions, as set out in Schedule III of the Order.
In the event of default in complying with the requirements of this Order, the company and every officer of the company who knowingly and willfully authorises or permits the default shall be liable to a penalty as specified under sub-section (2) of section 246 of the Ordinance.
The compliance report with the licensing condition would certify that the concerned company has obtained necessary permission/ license/approval to undertake the business activities as authorised in its memorandum of association, and that the company is compliant with the conditions contained in permission/license/approval to carry on the business activities imposed by concerned authority for the year ended.