The Securities and Exchange Commission (SEC) is declaring a holiday for fines on companies with standing deficiencies.
The holiday called Enhanced Compliance Incentive Plan (ECIP) follows the amnesty the SEC implemented last year and which ended last March.
“As a regulator, the SEC is committed to ensuring entities under its supervision are compliant with all the laws, rules and regulations applicable to them,” said Emilio Aquino, SEC chairman.
“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,” he added.
Under the ECIP, non-compliant corporations, including those placed under “delinquent” status, may settle their unassessed or unpaid fines and penalties for just P20,000.
Suspended and revoked corporations, including those with pending petitions for the lifting of the suspension or revocation order issued against them, may settle their fines at just 50 percent of the assessed penalty while paying the petition fee of P3,060.
The SEC said the lower rates apply to fines and penalties imposed on corporations for non-submissions 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 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 failures to submit a designated official and alternative email addresses and mobile phone numbers.
The SEC said applications of non-compliant, suspended and revoked corporations for ECIP may be submitted starting September 2 until November 30.
The ECIP is applicable to stock and non-stock corporations, including branch offices, representative offices, regional headquarters and regional operating headquarters of foreign companies, except corporations whose securities are listed on the Philippine Stock Exchange (PSE); whose securities are registered but not listed on the PSE; considered as public companies; those with intra-corporate dispute; have a disputed GIS; and have expired corporate term.
The SEC said to avail of ECIP, a duly authorized representative or resident agent of a corporation must file an online expression of interest (EOI) form and application for availment of ECIP through eFAST.
After submission of the EOI, eFAST will generate a payment assessment form (PAF) reflecting the fixed ECIP amount of P20,000 for non-compliant and delinquent corporations.
“The non-compliant or delinquent corporation must settle the amount through the electronic system for payment to SEC (eSPAYSEC) which will generate an electronic official receipt,” the SEC said.
“Once the payment is settled, the non-compliant or delinquent corporation must submit its latest due AFS and the required attachments, if any, and GIS. Subsequently, a confirmation of payment will be sent to its registered email address,” it added.
Meanwhile, revoked and suspended corporations will have to accomplish the EOI on eFAST and will be directed to pay the petition fee first via eSPAYSEC.
After paying the petition fee, the revoked or suspended corporation must submit its latest due AFS and the required attachments, if any, and GIS through eFAST.
“The suspended or revoked corporation must also submit the petition to lift order of suspension/revocation, alongside the supporting documents, to the designated email addresses depending on its principal address,” the SEC said.
The revoked or suspended corporation must then wait for the payment assessment form indicating the 50 percent assessed fines and penalties, which will be sent through their registered email address, as well as for the verification of its corporate status.
Once payment is complete and the submitted documents have undergone monitoring and evaluation, the suspended or revoked corporation will receive payment confirmation and its corporation status will be updated, subject to the processing and issuance of the lifting of revocation and order of revival, the SEC said.
