MANILA – The Securities and Exchange Commission (SEC) announced the introduction of the Enhanced Compliance Incentive Plan (ECIP), which significantly lowers fines for companies that have fallen behind on their annual reporting obligations. This new initiative, launched through Memorandum Circular No. 13 on August 30, aims to help ‘delinquent’ firms regain their good standing with the regulator.
According to Philippines News Agency, this move follows the strict enforcement of revised fines and penalties post-SEC Amnesty Program, designed to foster consistent and diligent compliance with reportorial duties and corporate governance. SEC Chairman Emilio Aquino highlighted the ECIP’s role in offering these corporations a chance to rectify their breaches with reduced financial burdens. Delinquent firms can now settle their dues for PHP20,000, a significant reduction from previous amounts. Moreover, corporations that have been suspended or had their registrations revoked can avail themselves of a 50% reduction on assessed fines, along with a fixed petition fee of PHP3,060.
The reduced penalties apply to several violations, including the non-filing and late filing of the General Information Sheet (GIS) and Audited Financial Statements (AFS) for recent and past years, along with the necessary attachments for certain types of corporations. Entities interested in taking advantage of these new terms must submit their applications by November 30.
Chairman Aquino reaffirmed the SEC’s dedication to ensuring that all regulated entities adhere strictly to the applicable laws, rules, and regulations, stressing the regulator’s role in maintaining robust oversight.