Regulated entities: SECP revises list of approved auditors

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has revised the list of approved auditors for SECP-regulated entities, introducing changes to the eligibility criteria for audit firms appointed by various categories of financial institutions and other regulated entities.

The SECP has issued a Circular No. 24 of 2026 to partially modify its earlier Circular No. 7 of 2026.

As per amended circular, the revised framework covers audit appointments for entities regulated under the Securities and Exchange Commission of Pakistan Act, 1997, the Securities Act, 2015, the Futures Market Act, 2016, the Modaraba Companies and Modaraba (Floatation and Control) Ordinance, 1980, the Corporate Restructuring Companies Act, 2016, the Insurance Ordinance, 2000, the Companies Ordinance, 1984, the NBFC Rules, 2003, and the Non-Banking Finance Companies and Notified Entities Regulations, 2008.

According to the circular, the changes will take effect for the appointment of auditors of lending non-banking finance companies (NBFCs) for financial years beginning on or after January 1, 2027.

Under the revised criteria, audit firms included in the first category are eligible to audit a broad range of SECP-regulated entities, including securities exchanges, futures exchanges, clearing houses, depository companies, securities brokers holding trading and clearing licences, asset management companies and pension fund managers or NBFCs with assets under management of Rs50 billion or more, as well as lending NBFCs accepting deposits.

The category also covers non-deposit-taking lending NBFCs with assets of Rs1 billion or more, modarabas with assets of Rs1 billion or more, collective investment schemes or voluntary pension schemes or real estate investment trusts (REITs) with assets of Rs10 billion or more, insurance, reinsurance and takaful operators with total assets exceeding Rs10 billion, collateral management companies, credit rating companies and professional clearing members.

The approved audit firms listed in this category are A.F. Ferguson & Co., Baker Tilly Mehmood Idrees Qamar, BDO Ebrahim & Co., Crowe Hussain Chaudhury & Co., EY Ford Rhodes, Grant Thornton Anjum Rahman, Ilyas Saeed & Co., KPMG Taseer Hadi & Co., Kreston Hyder Bhimji & Co., Muniff Ziauddin & Co., Nasir Javaid Maqsood Imran, Parker Russell-A.J.S., Rahman Sarfaraz Rahim Iqbal Rafiq, Reanda Haroon Zakaria Aamir Salman Rizwan & Co., Riaz Ahmad & Co., Rizwan & Co., RSM Awais Hyder Liaquat Nauman, S.M. Suhail & Co., Yousuf Adil, and UHY Hassan Naeem & Co.

For smaller entities, the SECP has provided a separate category of eligible auditors. These include securities brokers holding trading and self-clearing licences; asset management companies or pension fund managers and NBFCs with assets under management below Rs50 billion; non-deposit-taking lending NBFCs with assets below Rs1 billion; modarabas with assets below Rs1 billion; collective investment schemes, voluntary pension schemes or REIT schemes with assets below Rs10 billion; and insurance, reinsurance or takaful operators with total assets of Rs10 billion or less.

The approved audit firms under this category are Amin Mudassar & Co., Fazal Mahmood & Co., H.A.M.D & Co., Junaidy Shoaib Asad, Malik Haroon Ahmad & Co., Mushtaq & Co., Naveed Zafar Ashfaq Jaffery &Co., PKF F.R.A.N.T.S., Riaz Ahmad, Saqib, Gohar & Co., Shine Wing Hameed Chaudhri & Co., and Tariq Abdul Ghani & Co.

The SECP has further provided that entities falling under the trading-only category of securities brokers, futures brokers of Pakistan Mercantile Exchange (PMEX), securities and futures advisers, modarabas with assets below Rs200 million, insurance and reinsurance brokers, third-party administrators, corporate restructuring companies, trusts created by corporate restructuring companies, share registrars and balloters may appoint any audit firm having a satisfactory quality control review rating from the Institute of Chartered Accountants of Pakistan (ICAP).

The SECP has also clarified that where an entity covered by the specified categories is a public interest company under the Third Schedule to the Companies Act, 2017, the appointed auditor must additionally be registered with the Audit Oversight Board under section 36K(a) of the Securities and Exchange Commission of Pakistan Act, 1997.

Furthermore, asset management companies appointing auditors for collective investment schemes must comply with the requirements specified in the SECP’s Direction No. 05 of February 23, 2026, along with any subsequent directions issued by the commission.

The revised circular is aimed at updating the eligibility framework for auditors of regulated entities, with different categories of audit firms prescribed according to the nature, licensing status and asset thresholds of the entities concerned.

Copyright Business Recorder, 2026