Failure to file accounts statement: SECP to impose fine on designated partners, penalty on LLPs

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) will impose a fine of Rs 25,000 on designated partners and a daily penalty on the Limited Liability Partnerships (LLPs) who would fail to file a statement of accounts with the commission.

In this connection, the SECP has issued an SRO in exercise of the powers conferred by section 52 read with sub-section (3) of section 20 of the Limited Liability Partnership Act, 2017, read with proviso of sub-regulation 3 of regulation 16 of Limited Liability Partnership Regulations, 2018.

The SECP has issued this draft notification for public comments.

According to the notification, the requirement of this notification shall be applicable from July 01, 2026.

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Any LLP that fails to comply with requirement of this notification shall be liable to a fine which may extend up to Rs 25,000 and per day penalty during which the default continues up to Rs 500 and every designated partner of such partnership shall likewise be liable to a fine which may extend to Rs 2,000. Provided that no penalty shall be imposed if the default is rectified within thirty (30) days from the date of issuance of notice by the Commission.

In case of LLPs whose turnover exceeds Rs 1 billion, the International Reporting Financial Standards (IFRS) will be applicable, as notified by SECP. The audit requirement is as per International standards as adopted by the Institute of Chartered Accountant of Pakistan.

The LLPs whose turnover exceeds Rs 500 million and up to Rs 1 billion would be subjected to International Financial Reporting Standards for SMEs, as notified by the SECP.

The LLPs whose turnover is below Rs 500 million would be subjected to Revised Accounting and Financial Reporting Standards (AFRS) for Small-Sized Entities, as notified by SECP.

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