Companies That Failed to Submit SEC Requirements Now Filing for Amnesty
According to the SEC, more than half of the registered entities are non-compliant with the requirements that they have to submit to the agency.
Out of the 600,000 entities registered with the Securities and Exchange Commission (SEC), only 240,000 are complying with the requirements set by the agency. It is no surprise then that noncompliant companies are now in a rush to file for amnesty.
According to SEC Chairman Emilio Aquino, the agency is currently very busy with its amnesty program due to the large number of companies applying. He adds a number of small and medium enterprises (SEC) that have been suspended for not filing regulatory requirements despite being given ample time and opportunities to do so.
In fact, the report notes that the agency has already extended the deadline for amnesty applications to June 30.
Amnesty applications are being filed by companies due to late and non-filing of annual financial statements and general information sheets. Official email addresses and mobile phone numbers are also part of the regulatory requirements being asked for by the SEC.
What Happens After September 30?
The SEC agreed to extend the deadline to September 30 after companies expressed interest in applying for amnesty. There was also an overlap with a different set of deadlines given by the Bureau of Internal Revenue (BIR).
Once the June 30 extension has passed, the SEC will release an updated schedule of penalties and fines for non-compliance. This can be expected to be released on July 1.
Companies that are in violation can be fined somewhere between PHP 27,000 to PHP 45,000. Aside from this, a monthly fine of PHP 500 to PHP 1,000 will also be given to companies. The additional fine will depend on a company’s retained earnings.
Why Complying With Requirements is a Must
The SEC certification is a very important document for partnerships and corporations in particular. This is because they are required by law to register with the SEC.
Complying with the requirements of the agency and having a valid certification is important for any business run by a partnership or corporation. Noncompliance will make it hard for a business to apply for or renew certain permits, such as the business permit.
Those applying for SEC certification should note that requirements differ for partnerships, stock corporations, and non-stock corporations. You can check out The Business Manual’s SEC registration requirement guide for the complete list.