Full SECP Compliance Restoration for NBFC in 90 Days
Background
A recently licensed Non-Bank Finance Company (NBFC) received a show-cause notice from SECP following a regulatory inspection that identified significant gaps in compliance with the NBFC Regulations 2008 and Companies Act 2017. The firm faced potential suspension of its operating license if remediation was not completed within 90 days.
The Challenge
The NBFC had grown rapidly since licensing but lacked the internal compliance infrastructure to keep pace with regulatory requirements. Issues identified included incomplete board governance documentation, missing statutory registers, non-compliant related-party transaction approvals, and inadequate internal audit coverage.
Our Approach
Immediately deployed a dedicated compliance team to conduct a full regulatory gap analysis against SECP's NBFC Regulations and the show-cause notice requirements.
Developed a prioritised remediation plan with 47 specific action items categorised by criticality and assigned to responsible parties with daily tracking.
Established complete corporate secretarial infrastructure: statutory registers, board charter, committee terms of reference, and related-party transaction policy.
Designed and implemented a fit-for-purpose internal audit framework including risk assessment, annual audit plan, and first audit cycle covering the highest-risk areas.
Prepared comprehensive response to SECP's show-cause notice with supporting evidence of all remediation actions taken and ongoing compliance commitments.
The Outcome
All 47 compliance gaps were remediated within the 90-day deadline. SECP accepted the remediation response in full and closed the show-cause notice without imposing any penalties. BellWether subsequently retained as ongoing corporate secretarial and internal audit provider. The NBFC has maintained a clean regulatory record for 18 months post-remediation.
Services Used
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