THE Securities and Exchange Commission (SEC) has given companies that have failed to comply with reportorial requirements more time to settle their obligations with reduced penalty rates.
Under the SEC’s enhanced compliance incentive plan (ECIP), companies that are non-compliant, delinquent, were suspended or had their registrations revoked can recover their good standing by submitting the required documents and paying lower penalties within a prescribed period.
The ECIP was to expire last Nov. 30, but under SEC memorandum circular (MC) 17, series of 2024, dated Nov. 28, the regulator gave corporations up to Dec. 31 to submit their annual financial statements (AFS), general information sheets (GIS), and official contact details.
Non-compliant firms and those placed under delinquent status may pay a reduced fee of P20,000 to settle their fines and penalties, while suspended corporations and those with revoked registrations will need to pay half of their assessed fines and penalties, plus P3,060 to process their petition to lift the order of suspension or revocation (PLO).
Corporations must submit an expression of interest to participate in the ECIP using the SEC’s eFAST platform, and payments may be made through the agency’s eSPAYSEC portal.
The regulator said that as of Nov. 28, over 3,200 corporations had already applied and paid the corresponding ECIP fees.
“Companies who have yet to complete their applications by submitting their AFS and GIS, PLO and its supporting document requirements, as the case may be, are also given until Dec. 31 for the issuance of confirmation of payment for ECIP,” it added.
Failure to complete the set of requirements within the deadline will require the payment of higher penalties at 900 percent to 1,900 percent of the rates set under the ECIP.
Eligible corporations were enjoined to apply for ECIP incentives to avoid getting their corporate registrations revoked, pursuant to the Revised Corporation Code, or being placed under delinquent status if they failed to submit reportorial requirements three times, consecutively or intermittently, within a five-year period.
Corporations placed under delinquent status have two years to resume operations; otherwise, their registration will be revoked, the SEC said.
Be the first to comment