The Securities and Exchange Commission of Pakistan (SECP) has revised the eligibility criteria for audit firms appointed by financial institutions and other regulated entities, introducing changes to its list of approved auditors.
The commission issued Circular No. 24 of 2026, partially amending Circular No. 7 of 2026. The revised framework covers entities regulated under various laws, including the Securities Act, 2015, the Futures Market Act, 2016, the Insurance Ordinance, 2000, and the Companies Act, 2017.
According to the circular, the revised criteria will apply to the appointment of auditors by lending non banking finance companies (NBFCs) for financial years beginning on or after January 1, 2027.
The SECP has divided eligible audit firms into categories based on the nature of regulated entities, their licensing status and asset thresholds.
First Category Covers Larger Regulated Entities
Audit firms in the first category can audit a broad range of regulated entities, including securities exchanges, futures exchanges, clearing houses, depository companies, securities brokers holding trading and clearing licenses, and asset management companies or pension fund managers with assets under management of Rs50 billion or more.
The category also includes lending NBFCs accepting deposits, non deposit taking lending NBFCs with assets of Rs1 billion or more, modarabas with assets of Rs1 billion or more, and collective investment schemes, 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 are also covered.
The approved audit firms 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.
Separate Category Covers Smaller Entities
The SECP has established a separate category for smaller regulated entities, including securities brokers holding trading and self clearing licenses, asset management companies or pension fund managers and NBFCs with assets under management below Rs50 billion.
It also covers 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 firms in 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., ShineWing Hameed Chaudhri & Co. and Tariq Abdul Ghani & Co.
Other Entities Can Appoint ICAP Rated Auditors
Entities in the trading only category of securities brokers, futures brokers of the Pakistan Mercantile Exchange, 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 with a satisfactory quality control review rating from the Institute of Chartered Accountants of Pakistan.
The SECP has also clarified that entities covered by the specified categories that qualify as public interest companies under the Third Schedule to the Companies Act, 2017, must additionally appoint auditors registered with the Audit Oversight Board under Section 36K(a) of the SECP Act, 1997.
Asset management companies appointing auditors for collective investment schemes must also comply with SECP Direction No. 05, issued on February 23, 2026, and any subsequent directions issued by the commission.
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