The Securities and Exchange Commission (SEC) has rolled out new guidelines enforcing its “deemed approved” policy, setting mandatory processing timelines for most applications submitted by entities under its supervision. The policy, aimed at improving regulatory efficiency and certainty, takes immediate effect.
Under the new rules, applications for permits, licenses, registrations, and other authorizations must be resolved within specific timeframes: three working days for simple transactions, seven days for complex matters, and up to 20 working days for highly technical applications. Transactions governed by special laws will follow timelines specified in relevant statutes or the SEC Citizen’s Charter.
If the SEC fails to act within the prescribed period—without issuing a deficiency notice—the application will be considered approved, provided all documentary requirements are complete. Once completeness is confirmed and the period lapses, the SEC must issue a Payment Assessment Form immediately, and release the requested documents within two working days upon fee payment.
The policy includes a post-approval evaluation process. Approvals granted under the “deemed approved” rule may be revoked if false or misleading information is found. Violators may also face administrative penalties.
“This initiative removes bottlenecks and eliminates unreasonable delays to give entrepreneurs and investors the responsiveness they deserve,” said SEC chairman Francis Ed. Lim. He added, “Predictability in regulatory action is vital. With this policy, we are saying clearly: the SEC will act, and act swiftly.”
The policy excludes applications linked to legal proceedings, fraud, force majeure, or those requiring inter-agency coordination beyond the SEC’s control.
