CEBU CITY, Cebu (PIA) – The Securities and Exchange Commission (SEC) is granting ‘non-compliant corporations’ another opportunity to restore their good standing following the recent implementation of an incentive program.
SEC chairperson Emilio B. Aquino said that after the successful rollout of the SEC Amnesty Program in 2023, the commission has now issued SEC Memorandum Circular (MC) No. 13 Series of 2024 or the ‘Enhanced Compliance Incentive Plan’ (ECIP) to provide an avenue for the ‘non-compliant corporations’ to restore their good standing.
“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. 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 standing,” Aquino explained.
Through ECIP, non-compliant stock and non-stock corporations may settle their fines and penalties for only P20,000.
Non-compliant corporations are those unassessed or not yet assessed or those without issued Payment Assessment Form, uncollected fines and penalties by the commission, and/or those already assessed but not yet paid, or those under “delinquent status.”
The program runs from Sept. 2, 2024 until Nov. 30, 2024.
- Corporation violations covered in the program are those who have intermittently or consecutively not complied with the reportorial:
- 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 Annual Financial Statements (AFS), whether audited or certified, including fines for its attachments for the latest and prior years;
- Late filing of AFS, including fines for its attachments.
The ECIP also covers violations of the SEC MC No. 28, series of 2020, which requires all entities registered with the commission to designate and submit their official and alternative email addresses and mobile phone numbers.
On the other hand, suspended and revoked corporations that include those with pending petitions for the lifting of the suspension or revocation order issued against them, may settle only 50 percent of their assessed fines and pay the petition fee of P3,060 only.
This, however, cannot be adopted by the following corporations:
- whose securities are list on the Philippine Stock Exchange (PSE);
- whose securities are registered but not listed on the PSE;
- considered as public companies;
- with intra-corporate dispute;
- with disputed GIS;
- with expired corporate term; and
- covered under Section 17.2 of Republic Act. No. 8799, or the Securities Regulation Code.
To avail of the provisions under ECIP, a duly authorized representative or resident agent of a non-compliant corporation should file an ‘Online Expression of Interest (EOI) Form and Application for Availment of ECIP through eFAST.
The eFAST will generate the Payment Assessment Form (PAF) bearing the fixed ECIP amount of P20,000 to be settled through the ‘Electronic System for Payment to SEC’ (ESPAYSEC).
The revoked and suspended corporations will undergo a similar process, with the petition fee of P3,060 to be paid first via the same platform, ESPAYSEC.
Following the payment, corporations will have to submit the latest due AFS and the required attachments, if any, and their GIS.
Revoked and suspended corporations should submit the Petition to Lift Order of Suspension/Revocation alongside supporting documents.
Afterwards, the PAF for revoked and suspended corporations will also be issued via registered email address with the indicated 50 percent assessed fines and penalties.
SEC clarified that the payment of ECIP does not automatically confer ‘compliant’ status to availing corporations, or lift the suspension and revocation of their certificates in corporation.
In view of this, SEC Cebu Extension Office (CEBEO) will hold a ‘Free Webinar’ on the ECIP on Sept. 18, 2024 from 9:00 a.m. to 11:00 a.m. via Zoom to guide the interested corporations on their availment of the Enhanced Compliance Incentive Plan.
SEC CEBEO is inviting and encouraging all corporations to join the webinar via: https://bit.ly/ECIP2024_reg. (JJT/PIA7-Cebu)
