SEC cuts penalties for ‘delinquent’ firms

MANILA: The Securities and Exchange Commission (SEC) issued a new memorandum circular (MC) that will allow firms with 'delinquent' status to restore their good standing. In a statement Monday, SEC said it launched the Enhanced Compliance Incentive Plan (ECIP) on Aug. 30 through MC No.13 that reduces fines for firms that missed their annual reportorial requirements. 'After the SEC Amnesty Program, the Commission has strictly imposed higher revised fines and penalties to encourage strict and habitual compliance with reportorial obligations and good corporate housekeeping,' SEC Chairman Emilio Aquino said. 'With the launch of ECIP, we are affording corporations under our supervision another opportunity to remedy their violations, at lower fees, and restore their good standings.' Firms under 'delinquent' status may settle their unassessed or unpaid fines and penalties for only PHP20,000. 'Meanwhile, suspended and revoked corporations, including those with pending petitions for the lifting of the suspension o r revocation order issued against them, may settle only 50 percent of their assessed fines and pay the petition fee of PHP3,060,' the SEC added. These lower rates to fines and penalties can be applied to the following violations: non-filing of General Information Sheet (GIS) for the latest and prior years; late filing of GIS for the latest and prior years; non-filing of audited financial statements (AFS), whether audited or certified, including fines for the non-filing of the attachments required for certain corporations, for the latest and prior years; and late filing of AFS, including fines for the late filing of the attachments required for certain corporations, for the latest and prior years. Applications may be submitted until Nov. 30. 'As a regulator, the SEC is committed to ensuring that entities under its supervision are compliant with all the laws, rules and regulations applicable to them,' Aquino said. Source: Philippines News Agency