The Securities and Exchange Commission (SEC), which has drawn up a punitive schedule of fines 90 percent more harsh than existing rules, has released an amnesty program extending the compliance period up to end-September this year.
The extension, the SEC said, recognizes the difficulties corporations and associations have encountered since the guidelines were first released in March.
“The SEC amnesty program is a chance for corporations and associations to get a fresh start in their compliance with reportorial requirements, so they continue to enjoy the benefits and privileges of being a registered corporation,” SEC chairman Emilio B. Aquino said.
Under proposed guidelines, effective October 1, late filing of reportorial documents by domestic stock and non-stock corporations with retained earnings lower than P100,000 pay a base penalty of P5,000 for the first offense, rising to P9,000 by the fifth offense.
This is separate from a P1,000 fine for each month of continuing violations.
Non-filing of reportorial requirements by both stock and non-stock corporations with retained earnings of less than P100,000 will incur fines amounting to P10,000 for the first offense up to P18,000 for the fifth offense, alongside an additional monthly fine of P1,000 per month of the continuing violation.
Serial four-year offenders are then declared delinquent and have their registrations revoked under a plan implementing higher penalties and fines starting October 1, immediately after the last day of the amnesty program.
The amnesty program is an opportunity for companies to regain their good standing, return to normal operations, and gain the trust of potential investors.
With fees and penalties increasing in October, the SEC strongly encourages companies to regain their good standing with the commission and take advantage of the lower fines offered by the program.
