Insurance brokers required to submit accounts to SECP

The licensed insurance brokers on the pattern of companies are required to submit the requisite report/accounts/financial statements to the Securities and Exchange Commission of Pakistan (SECP) within four months of the close of the financial year.
The order has disposed of the proceedings initiated against an Insurance Brokers (Private) Limited (the "Company"), for alleged contravention of Section 109 of the Insurance Ordinance, 2000 (the "Ordinance") read with Rule 27 of the Securities and Exchange Commission (Insurance) Rules, 2002 (the "Rules"). The company, its directors (including the chief executive officer) and/or their authorised representatives shall be referred to as the "respondents".
The company is registered under the ordinance to carry on business of direct insurance broking in Pakistan. All licensed insurance brokers are required to submit the requisite report/accounts / financial statements to the Commission within four months of the close of the financial year. In this regard, the provisions of Section 1090£ the Ordinance stale that:
"Insurance brokers to report annually to Commission": A licensed insurance broker shall make an annual report to the Commission. Such report shall include audited accounts of the insurance braking business and such other information and statements as may be prescribed, each in such format as may be prescribed."
The record of the Commission revealed that the company failed to file its annual audited accounts and financial statements for the year ended December 31, 2015 within the timeframe as stipulated under Rule 27 of the Rules in violation of Section 109 of the Ordinance, for which the Commission may take action under Section 102(6) of the Ordinance.
The order said that the SECP has carefully examined and given due consideration to the submissions made by the respondents (company/directors) and have also referred to the provisions of the Ordinance and other legal references (ie the Rules). The SECP is of the view that the element of default of Section 109 of the Ordinance read with Rule 27(1) & (3) of the Rules is there, for which the application dated September 6, 2016 for issuance or renewal of broking licence may be refused in terms of Sections 102(6) of the Ordinance. However, as directed during the hearing, the Company has submitted its financial statements for the year ended December 31, 2015 vide letter dated October 7, 2016, hence, a lenient view may be taken.
The SECP instead of refusing the application for issuance or renewal of the insurance brokerage licence of the company in terms of Sections 102(6) of the Ordinance, considers the late submission of Financial Accounts for the year ended December 31, 2015. However, the company is hereby strictly warned to be careful in future.
The record of the Commission reveals that the company failed to file its annual audited accounts and financial statements for the year ended December 31, 2015 within the timeframe as stipulated under Rule 27 of the Rules in violation of Section 109 of the Ordinance, for which the Commission may take action under Section 102(6) of the Ordinance.
As per record of the Commission, the Company failed to file its annual audited accounts and financial statements for the year ended December 31, 2015 within the timeframe as stipulated under Rule 27 of the Rules, ie within four months from the close of the financial year, it added.