The SEC has introduced SEC MC No.13, series of 2024 or the Enhanced Compliance Incentive Plan (ECIP) as a follow-up to its successful Amnesty Program in 2023. This initiative aims to assist delinquent and non-compliant corporations in restoring their good standing by offering significantly reduced fees and penalties for delayed reportorial submissions.

The ECIP is designed for non-compliant corporations, including those that have been declared delinquent due to failure to file their General Information Sheet (GIS) or Financial Statements (AFS) on time. It also covers violations under MC No. 28, series of 2020 or the “Requirement for Corporations, Partnerships, Associations, and Individuals to Create and/or Designate E-mail Account Address and Cellphone Number for Transactions with the Commission.” Suspended and revoked corporations seeking to reinstate their good standing are also covered by the ECIP.

Non-compliant corporations may now settle their outstanding fines and penalties for a reduced fee of PhP20,000.00, provided that applicants submit the latest reportorial requirement due at time of the application and comply with MC 28 through the MC28 Submission Portal.

Suspended and revoked corporations, including those who have filed for the lifting of suspension/revocation may settle 50% of their assessed fines, along with a petition fee of PhP3,060.00, subject to the payment of the filing/petition fee and the appropriate proceedings with the Company Registration and Monitoring Department (CRMD) and Extension Offices (EOs).

Corporations can submit their applications for ECIP by filing a web-based Expression of Interest Form (EOI) and Application for Availment of ECIP via SEC’s Electronic Filing and Submission Tool (eFAST) from September 2, 2024 to November 30, 2024.

The Circular emphasized that payment of the ECIP fee alone does not automatically restore compliant status or lift suspensions or revocations. Corporations are required to submit all the necessary supporting documents enumerated under the Circular to the SEC. Failure to complete the requirements within the prescribed period will result in the forfeiture of the ECIP fees.

Should you have questions on the above regulations, please do not hesitate to contact us at info@mtfcounsel.com.

Thank you.

Mata-Perez, Tamayo & Francisco

September 3, 2024

https://mtfcounsel.com/wp-content/uploads/2024/09/SEC-Memorandum-Circular-No.-13-Series-of-2024.pdf