SEC: Higher fees being fine-tuned
EGISTERED corporations should soon expect higher regulatory fees and charges as the Securities and Exchange Commission (SEC) wants to implement proposed adjustments this year.
“Preferably at least within the year,” SEC Chairman Emilio Aquino said last week, adding that the corporate regulator was currently fine-tuning the proposal.
He emphasized that the revised schedule of fees would help the SEC carry out its plans and programs more efficiently as it no longer receives funding from the national government.
“We don’t have government subsidies anymore. We’re not included in the GAA (General Appropriations Act),” Aquino said in English and Filipino.
“We just have to somehow be able to raise our own fees so that we’ll be able to operationalize and complete our digitalization, which is a bit expensive in terms of capex (capital expenditures) and all,” he continued.
There is no timeline yet for implementing the fee increase, he explained, as SEC officials still need to meet anew with the principals of major business groups that are opposed to higher fees.
“We’re in the process of sorting it out. We’re actually open for a possible review and all, but as of now, nothing has been done yet. We also promised to listen” to the concerns raised by business groups
The commission last August issued a proposal implementing a revised schedule of fees for registration, licensing, accreditation, and other related transactions for registered corporations.
In October, business groups, led by the Philippine Chamber of Commerce and Industry (PCCI) and the Management Association of the Philippines (MAP), issued a joint letter objecting to the move, saying higher fees would only serve as a “huge burden” to smaller firms.
Amnesty program
Meanwhile, following the December 2023 deadline for the agency’s amnesty program, Aquino said that approximately 85,000 noncompliant, suspended and revoked corporations had availed of the scheme.
“There are still a number of noncompliant companies, but then again, it’s quite an improvement. In terms of compliance rate, we’re higher than some of our neighbors.”
Several startups failed to comply with the reportorial requirements as they continued to struggle to sustain their businesses, the SEC chairman noted.
“If you study the life of a startup, normally they build up in five years. We gave them a chance because we’re purging and cleansing our database. It’s easy to incorporate, but to operate the business and sustain it is a different story.”
In response to appeals from the corporate sector, the amnesty, which had an original deadline of April 30, 2023, was extended four times: in June, then in September, again in November, and finally in December.
In line with the extension, an updated scale of fines and penalties for reportorial requirements was implemented starting last month, with basic penalties for the late and non-filing of reports increasing by as much as 1,900 percent.