SEC urges firms to avail of amnesty program for late filers

MANILA, Philippines — The Securities and Exchange Commission (SEC) has urged delinquent corporations to avail of the amnesty program for late filers of reportorial requirements.

Corporations and associations that have incurred penalties due to the late or non-filing of their annual reports may avail of the amnesty program before they face higher penalties starting on Oct. 1, the SEC said.

SEC chairperson Emilio Aquino said the program is a chance for corporations and associations to get a fresh start in their regulatory requirements and continue to enjoy the benefits and privileges of being a registered corporation.

“We reiterate our reminder to all corporations that starting a business does not end with registration with the SEC. This is just the first step. They must faithfully comply with reportorial requirements thereafter to ensure their continuity and sustainability,” he said.

Last March 15, the SEC issued a memorandum circular granting amnesty for non and late filing of annual reports, general information sheet and other reportorial requirements.

The amnesty, which comes in the form of a waiver or reduction of fees, is part of the SEC’s efforts to encourage its regulated entities to comply with their reportorial requirements under Republic Act 11232, or the Revised Corporation Code.

Around 40,000 corporations have since completed their amnesty application with the SEC, allowing them to reclaim their good standing or corporate registration with the regulator.

The deadline for all amnesty applications is on Sept. 30, as provided under SEC Memorandum Circular 9, Series of 2023.

At present, the SEC is preparing guidelines for the new set of fines and penalties for the late and non-filing of reportorial requirements that will be imposed starting Oct. 1.

For instance, non-compliant, suspended, and revoked corporations that will not avail of the amnesty will be subject to an estimated 90 percent increase in the payment of fines and penalties for late and non-submission of reportorial requirements starting Oct. 1, according to the SEC.

Aside from monetary fines, the SEC may put a corporation under delinquent status after it has failed to submit its reportorial requirements thrice, consecutively or intermittently, within five years.

The SEC can also revoke a corporation’s registration should it incur a fourth offense and it has been given reasonable notice regarding its delinquent status.