THE Securities and Exchange Commission (SEC) said it has approved the application of DragonFi Securities as an accredited administrator for the Personal Equity and Retirement Accounts (PERA), the first such approval for a stockbroker under the expanded list of administrators for the voluntary retirement fund.
The expanded list, released last September, includes securities brokers, investment houses and investment company advisers or fund managers.
Prior to this, the role of a PERA administrator was limited to banks.
PERA is a voluntary retirement saving program available to the public, supplementing the pension plans of state-based Social Security System, Government Service Insurance System and employer-sponsored retirement plans. The program offers contributors tax benefits not available in other retirement investment products to encourage Filipinos to save, which is institutionalized through the PERA Act of 2008 (RA9505).
SEC Chairman Emilio Aquino said the inclusion of entities such as DragonFi Securities as a PERA administrator will help in “broadening public participation in corporate value creation and strengthen the capital market.”
“This approval is a significant step toward empowering Filipinos to secure their financial future while easing fiscal pressures on the government in the long run,” Aquino said.
An accredited PERA administrator is required under the SEC’s memorandum circular 14-2024, issued in September, to maintain a net worth of at least P100 million at all times. It is also required to adopt and fully comply with a manual of corporate governance; provide a clear and sufficient organizational plan or structure of its personnel who will perform PERA administration functions; and possess adequate systems and technological capabilities, as well as the necessary technical expertise and personnel to administer all types of PERA investment products.
The PERA administrator must also have sufficient personnel who have undergone the requisite training prescribed or approved by the SEC to educate PERA contributors on the nature of a PERA and the requirements, risks, and benefits of the investment product, among others.
