SECP Tightens Auditor Criteria for Larger Non-Bank Lenders
The Securities and Exchange Commission of Pakistan (SECP) has revised the auditor appointment criteria for regulated entities, introducing an asset-based threshold for non-deposit-taking lending companies.
Under the updated framework, non-deposit-taking lending non-bank finance companies (NBFCs) with assets of Rs1 billion or more must appoint an auditor from a designated list of 20 firms. Smaller lenders may choose from that list or from a supplementary group of 11 firms, according to reporting on SECP Circular No. 24 of 2026.
The circular, titled “Appointment of Auditors for SECP Regulated Entities,” is dated October 9, 2026. SECP lists it among its circulars published on October 19.
Asset size replaces the digital-lending distinction
The revised criteria make a lender’s asset size the deciding factor for this category, rather than whether it provides loans through a mobile app. The previous framework had treated app-based lenders as a separate category, Focus Pakistan reported.
The change affects which audit firms are eligible for larger lending NBFCs. Firms in the supplementary group can still be selected by companies below the Rs1 billion threshold, but not by those at or above it, according to the report.
When the new criteria apply
The reported effective date is for financial years beginning on or after January 1, 2027. The coverage also says the circular does not require companies to end current auditor engagements immediately; the new criteria would apply when an appointment is due.
The circular concerns auditor appointments for SECP-regulated entities. The reported threshold applies specifically to non-deposit-taking lending NBFCs, rather than banks generally. The available reporting says the circular does not set loan limits or change interest rates.
Lenders approaching the threshold may need to check whether their current auditor remains eligible when they next appoint or reappoint an auditor. The updated criteria place greater emphasis on the size of a lender’s balance sheet when determining the available auditor pool.