Friday, April 12, 2024

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The Securities and Exchange Commission is contemplating granting an additional extension for the amnesty program’s deadline.


By Revin Mikhael D. Ochave, Reporter

The SEC is considering extending the deadline for their amnesty program beyond Sept. 30.

“I do not wish to anticipate the en banc meeting this afternoon on Thursday. However, one important matter that must be decided is the extension. Currently, the commission’s inclination is to grant an extension, but with limitations,” stated Emilio B. Aquino, Chairperson of the SEC, during a partnership agreement signing event in Makati City on Thursday.

The SEC has decided to extend the amnesty program until September 30, rather than the original deadline of June 30.

“The full panel must reach a conclusion to prolong, but not for the same duration. It could potentially be the final extension, but for a significantly shorter period,” he stated.

He chose not to reveal the duration of the potential extension.

Per Mr. Aquino, the proposed extension would aid in collecting additional data to be utilized by the SEC for improved analysis and monitoring.

Mr. Aquino urged certified public accountants who are responsible for certifying financial statements to be patient, as they are close to completing their work. He also emphasized the importance of receiving more submissions, as it will improve the quality of their analysis and expand their pool of data.   

The SEC’s amnesty program, which was initiated in March, provides relief from fines and penalties for companies that have been late or failed to file their general information sheet, annual financial statements, and comply with Memorandum Circular No. 28, Series of 2020.

According to the SEC’s amnesty program, companies that have not followed regulations only have to pay a fine of P5,000 for not submitting any annual reports, regardless of how many years they have not done so.   

The SEC has announced that it released Memorandum Circular (MC) No. 14 on September 21, which allows securities registrants to choose whether or not to include mitigating factors in the risk factors section of their prospectus.

On September 12, the SEC released MC No. 13, stating that companies are only required to disclose financial information for two comparative periods in their last three fiscal years.

Mr. Aquino stated that the commission’s efforts include simplified procedures in order to incentivize companies to utilize the capital markets for their business expansion needs.

He stated that the SEC will continue to discover additional methods to simplify the process of registering and obtaining a license to sell securities. This will result in more investment prospects for the general public.