The Securities and Exchange Commission of Pakistan (SECP) has officially updated the eligibility criteria for audit firms appointed by financial institutions and regulated corporations. The commission updated its existing framework by introducing a new classification of the eligible SECP approved auditor panels through the issuance of Circular No. 24 of 2026 based on the asset size licensing and corporate nature.
The changes in these criteria will apply to the NBFCs for lending of FYs beginning on or after January 1, 2027. The regulatory overhauls cover regulators of firms regulated under the Securities Act 2015, the Futures Market Act 2016, the Insurance Ordinance 2000 and the Companies Act 2017. The SECP structured the audit firms into distinct categories. The first tier handles larger corporate setups including securities exchanges, modarabas with assets exceeding Rs1 billion and asset management firms managing over Rs50 billion. Major firms listed in this category include A.F. Ferguson & Co., EY Ford Rhodes and KPMG Taseer Hadi & Co. Conversely, the second tier oversees smaller entities falling below these financial thresholds including specific brokers and smaller mutual funds.
Furthermore, the trading-only brokerage firms and smaller insurance brokers can select any auditor carrying a satisfactory quality control rating from the Institute of Chartered Accountants of Pakistan (ICAP). However, entities qualifying as public interest companies must additionally ensure their chosen auditors are registered with the Audit Oversight Board.
Is SECP changing your auditor?
Find how new asset criteria will impact your corporate compliance strategy.
Who made the category list?
Check out which top tier audit firms qualified for large institutions.
Will small brokers face audits?
Reveal what the updated trading only tier rules mean for your business.
Does your firm need ICAP?
Go through the critical quality control ratings required for smaller entities.
Are public interest rules shifting?
Uncover the additional registration steps mandated by the Audit Oversight Board.
