In a landmark move to improve service delivery and reinforce its commitment to the ease of doing business, the Securities and Exchange Commission (SEC) has issued new guidelines that enforce strict timelines in processing substantially all types of applications — with a “deemed approved” policy for requests left unattended beyond the prescribed period.
The SEC issued Memorandum Circular No. 7, series of 2025, on July 10, affirming the Commission’s commitment to the Ease of Doing Business, and providing for strict timelines in the processing of applications and the guidelines for applications deemed approved.
The new policy sets clear and enforceable turnaround times for applications for permits, licenses, registrations, certificates, clearances, and other authorizations — subject to a limited list of exclusions.
“I said on Day One that I wanted the SEC to be known not only as a good regulator, but as a good facilitator of doing business,” SEC chairman Francis Lim, quoting from his inaugural address to SEC employees when he assumed office on June 10, 2025, said.
“This policy breathes life into that promise — we are removing bottlenecks, eliminating unreasonable delays, and imposing discipline in our internal processes to give entrepreneurs and investors the level of responsiveness and certainty they deserve,” Lim said in a statement July 16.
Under the circular, simple applications must be processed within three working days; those requiring evaluation or coordination must be resolved within seven working days; highly-technical applications requiring legal or financial review or interagency clearances must be completed within 20 working days; and transactions governed by special laws must be processed according to timelines under applicable statutes, or the SEC Citizen’s Charter.
If the Commission fails to act within these prescribed timelines without reverting to the applicant with a notice of deficiency, the application shall be deemed approved — provided all documentary requirements have been submitted, it added.
Upon confirmation of completeness and lapse of the processing period, the SEC is mandated to issue the corresponding Payment Assessment Form (PAF) immediately. After payment of the assessed fees, the requested documents must be released within two working days.
Applicants found to have submitted false or misleading information, or fail to submit the required information or documents, will face administrative penalties, including revocation of the issued approval.
“This is without prejudice to the right of the public to proceed against applicants in case they suffer damage as a result of the applicants’ false or misleading information or failure to comply with the SEC requirements,” Lim said.
The new policy will not apply in cases involving ongoing legal proceedings or regulatory investigations, fraud or misrepresentation, force majeure or uncontrollable delays, and applications requiring specialized or multi-agency evaluations where the inability of the SEC to act on the application within the prescribed timeline is attributable to other government agencies.
The circular also prescribes procedures for pending applications.
“We recognize that predictability in regulatory action is vital to the business community, and with this policy, we are saying clearly: the SEC will act, and act swiftly,” Lim stressed.
Earlier, the SEC issued a circular reducing by 50 percent fees for securing copies of documents from the SEC to reduce the cost of doing business. These documents are often needed by business for various purposes, like getting permits and obtaining loans and other purposes to expand their business. ||
