On Aug. 30, PHI SEC adopted an enhanced compliance incentive plan.
PHI SEC issued circular on adoption of an enhanced compliance incentive plan (ECIP).
Follows PHI SEC Dec. 2023 reminded amnesty program for non-compliance, #182651.
Covered Violations
The ECIP shall cover not yet assessed or not yet issued payment assessment form, and uncollected fines and penalties by PHI SEC for certain violations by corporations.
In addition, the ECIP shall also cover violations under memo circular no. 28, s. 2020, or the requirement for corporations, partnerships, associations, and individuals to designate e-mail account address and cellphone number for transactions with PHI SEC.
Fees and Suspension
ECIP fee for late and non-filing of general information sheet and financial statements, or non-compliance with memo circular no. 28, will be PHP 20k for non-compliant corporations; for suspended and revoked corporations, it will be 50% of assessed fines.
Payment of the ECIP fee does not confer compliant status to firms, nor automatically lift the suspension and revocation; firms must follow application/payment procedures.
Effectiveness
Applications for ECIP shall be accepted starting from Sep. 2, 2024 to Nov. 30, 2024.
The circular takes effect immediately.
Sep. 2024 Notice
On Sep. 2, 2024, PHI SEC issued notice reiterating deadline for ECIP of Nov. 30, 2024.
Sep. 2, 2024 Press Release
On Sep. 2, 2024, PHI SEC issued a press release outlining the details of ECIP, reiterates deadline, timelines and requirements as per its circular of Aug. 30 above.
Document dated Sep. 2, 2024, received from PHI SEC Sep. 6, summarized Sep. 9.
Sep. 23, 2024 Reminder
On Sep. 23, 2024, PHI SEC reminded firms of the Nov. 30, 2024 deadline for ECIP.
Reiterated eligibility, timelines and requirements as per the Aug. 30 circular above.
Nov. 2024 Clearing Reminder
On Nov. 4, 2024, PHI SEC reminds corporations to clear their record and avoid higher fines and penalties for the late and non-filing of reportorial requirements to PHI SEC.
Corporations must submit latest annual financial statements and general information sheets to qualify for ECIP, suspended or revoked corporations need to submit petition.
Applications are done through PHI SEC’s eFAST and payment is via eSPAYSEC.
Nov. 29, 2024 Deadline Extended
On Nov. 29, 2024, PHI SEC extended ECIP application deadline to Dec. 31, 2024.
Circular is effective immediately upon publication in newspaper of general circulation.
Document dated Nov. 29, 2024, received from PHI SEC Dec. 2, summarized on Dec. 4.
Dec. 2, 2024 Extended Deadline Reminder
On Dec. 2, 2024, PHI SEC issued press release publicizing extension of the application deadline to Dec. 31, 2024 as set out in its Nov. 29, 2024 circular detailed above.
Document dated Dec. 2, 2024, received from PHI SEC Dec. 3, summarized on Dec. 5.
Dec. 14, 2024 Compliance Warning
On Dec. 14, 2024, PHI SEC warned 11,677 corporations of possible suspension for non-compliance with reporting requirements, given failure to submit the required annual financial statements and general information sheets from 2015 to 2022.
Corporations failing to submit reports three times within five years classified as delinquent with two years to resume operations; PHI SEC incentivizes compliance, namely, via ECIP by extending application deadline to Dec. 31, 2024 as noted above.
Non-compliant and delinquent corporations can settle penalties for PHP 20k, suspended/revoked corporations pay 50% of assessed penalties plus PHP 3,060 fee.
Eligible corporations must submit expression of interest through the eFAST portal.
Aside from possible suspension of their certificates of incorporation, entities included in the list will be subject to the updated scale of fines and penalties that took effect in Apr, 2024; PHI SEC gave examples of how these increases operate in practice.
Document dated Dec. 14, 2024, received from PHI SEC Dec. 17, summarized Dec. 20.
