The Securities and Exchange Commission (SEC) has rolled out an incentive program that allows corporations, which have failed to submit their annual reports on time, to restore their good standing.
Following the success of the amnesty program it implemented last year, the Commission issued SEC Memorandum Circular (MC) No. 13-2024 Aug. 30, providing for the Enhanced Compliance Incentive Plan (ECIP).
“As a regulator, the SEC is committed to ensuring that entities under its supervision are compliant with all laws, rules, and regulations applicable to them,” chairperson Emilio Aquino said in a statement Sept. 3.
“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 added.
Under the ECIP, non-compliant corporations, including those placed under “delinquent” status, may settle their unassessed or unpaid fines and penalties for P20,000 only.
Suspended and revoked corporations, including 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.
The significantly lower rates apply to fines and penalties imposed on corporations that did not file the General Information Sheet (GIS) for the latest and prior years; late filing of GIS for the latest and prior years; non-filing of 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.
The ECIP also covers violations under SEC Memorandum Circular 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.
Applications of non-compliant, suspended and revoked corporations for ECIP may be submitted until Nov. 30, 2024, the SEC said.
To avail of ECIP, a duly-authorized representative or resident agent of a corporation must file an Online Expression of Interest Form and Application for Availment of ECIP through eFAST.
For definitive guidance in availing of the ECIP, read the full text of SEC Memorandum Circular No. 13-2024 on the SEC website. ||
