Easing of SEC rules on missed registration deadlines backed

The decision of the Securities and Exchange Commission to relax rules on companies that miss their corporate registration deadlines received the support of Senator Bam Aquino, who chairs the Senate committee on trade, commerce and entrepreneurship.

The SEC’s decision to extend the deadline for these companies to appeal the revocation or suspension of their registration is aligned with the agency’s proposal to amend the Corporation Code and allow perpetual terms for corporations, among others.

Aquino—the principal sponsor of the bill amending the Corporation Code—stressed, however, that the SEC should include in the relaxation of its rules the extension of the corporate terms of corporations with pending or decided cases in their favor.

“In fact, in the last meeting of the Senate technical working group, all stakeholders have agreed to this proposal by the SEC,” the senator said.

The senator agreed to SEC Chair Teresita Herbosa’s statement that the move was in line with the government’s goal of easing requirements in doing business in the country.

“The SEC should be able to relax its rules, as it has previously done in other cases, to enable businesses to thrive,” he said.

Also, Aquino called on the SEC to be more vigilant in monitoring investment scams.

“The SEC, as part of its regulatory function, should focus its resources on running after those engaged in illegal activities targeting the masses who not only have limited resources, but are heavily hit economically by these illicit schemes,” he said.

“I will review the proposed amendments to the Corporation Code to ensure that there will be safeguards against illicit investment schemes and that those who are directly involved and those in the SEC who allow the scams to happen are held liable.”