SECP proposes professional qualification framework for official liquidators

October 02, 2026 (MLN): The Securities and Exchange Commission of Pakistan (SECP) has proposed a comprehensive professional qualification framework for official liquidators, interim administrators, and insolvency experts to modernize corporate restructuring in the country.

According to the consultative document, Pakistan has 64 empanelled official liquidators and nine approved insolvency experts.

However, the absence of a standardized performance and training mechanism has long impacted judicial efficiency and creditor confidence.

The SECP’s proposed framework aims to bridge this gap by streamlining company dissolution, expediting the rehabilitation of financially distressed businesses, and safeguarding creditors' interests.

Under the proposed rules, individuals seeking empanelment must hold a relevant degree in law, business, finance, or accounting, and successfully obtain an Insolvency Professional Training Certificate from the Institute of Financial Markets of Pakistan (IFMP).

The certification process is structured into three levels Foundation, Practitioner, and Advanced/Global combining written examinations, oral evaluations, and case simulations.

The curriculum covers domestic insolvency laws, cross-border restructuring (aligned with UNCITRAL model laws), forensic accounting, and valuation techniques.

To maintain active status on the panel, certified professionals will be required to complete 20 hours of mandatory Continuing Professional Development (CPD) annually.

The framework also introduces a strict code of conduct addressing conflicts of interest, independence, and ethical performance, while barring SECP employees from serving as liquidators.

The SECP has invited public and stakeholder feedback on the consultative document, which is available on its official website, with comments open until October 16, 2026.

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