The Securities and Exchange Commission has approved a basket of regulatory relief seeking to boost the sluggish pre-need plan industry given a tough global environment.

SEC Chair Fe Barin told reporters the corporate regulator has come out with a circular allowing the 24 providers of pension, education and memorial plans with operating license for 2009 some flexibility ? such as in multi-year capital buildup and in equity infusion using real estate assets and investment in unlisted shares.

But on the proposal from legislators to increase the amount of contribution to the trust funds as a percentage of premium collected, Barin said the ratio should definitely increase but the SEC would still have to study as to what extent.

One highlight of the new package is a grace period to build up capital. The 24 operating pre-need companies were given until April 15 to submit their individual business plan to the SEC, which in turn will decide on a three- or five-year capital build-up period.

?We have imposed the deadline on ourselves to be able to evaluate all of them at the latest middle of May so that we can come up with a decision,? Barin said.

Barin said the SEC also agreed to allow real estate assets to qualify as part of additional capital ?but subject to the condition of being interest-earning.?

Under the old rules, real estate investments are not allowed to exceed 15 percent of total trust fund equity.

There were likewise safeguards attached to a leeway given to infuse shares in unlisted assets as part of capital. ?They must have a track record of profitability and should not be in any way related to the investing company,? Barin said.

The 24 pre-need companies with licenses for 2009 are AMA Plans Inc., Ayala Plans Inc., Caritas Financial Plans Inc., CityPlans Inc., Cocoplans Inc., Danvil Plans Inc. (formerly Berkeley International Plans Inc.), Destiny Financial Plans Inc., Eternal Plans Inc., First Country Plans Inc., First Union Plans Inc., Grayline Plans Inc., Himlayang Pilipino Plans Inc., Loyola Plans Consolidated Inc., Manulife Financial Plans Inc., Mercantile Careplans Inc., Paz Memorial Service Inc., Permanent Plans Inc., Philam Plans Inc., Provident Plans International Corp., Prudentialife Plans Inc., St. Peter Life Plan Inc., Sun Life Financial Plans Inc., Transnational Plans Inc. and Trusteeship Plans Inc.

During the capital buildup period, firms cannot declare any form of dividends, stock options or warrants, or any form of profit sharing, performance bonus and other compensation schemes to its officers.

The pre-need industry had sought regulatory relief from the SEC since August on grounds that mere capital infusion and build-up of trust funds were not enough in this turbulent environment.

On the proposed increase in the contribution to the trust funds, Barin said it was a measure that the SEC was now working on. ?Right now with the very low yield on trust funds, you can?t expect it to go faster,? she said.

The SEC also issued a notice to the public that three mutual funds under the bankrupt Legacy group had ceased operations. These are Legacy HY Fund Inc., Legacy GS Fund Inc. and Legacy TD Fund Inc.