The Securities and Exchange Commission (SEC) remained firm on its decision to implement higher regulatory fees by this year, saying that it was now only waiting on the results of the Anti-Red Tape Authority’s (Arta) review of the SEC’s risk assessment report before applying the new rates.
SEC Commissioner McJill Bryant Fernandez told reporters on Monday that they had seen “positive progress” in its discussions with business groups, which have been opposing the rate hike.
While there were currently no upcoming discussions with the groups, SEC chair Emilio Aquino said they were still willing to hold meetings to reconcile and address concerns.
“There are still continuing conversations about it, but it’s not about us imposing [it]. In fact, we’re listening. It should be both ways,” Aquino said.
To recall, the regulator proposed higher charges in August last year, stressing that the last fee schedule was updated in 2017, based on a 2014 proposal.
Under the proposed rates, amending by-laws or articles of incorporation will rise to as much as P3,500 from P1,000, depending on the change. Fees for corrections, meanwhile, may rise to P15,000 from P3,000.
Companies that want to petition the SEC to set aside a suspension or revocation order may pay P20,000 from P3,000 previously.Various business groups have pointed out that the proposed rates were “unnecessary and unconscionable” given the country’s still volatile economy. They likewise asked the SEC to submit a risk assessment report to the Arta.
Aquino told companies, however, to just comply with existing rules and regulations in order to avoid having to pay higher fees and face penalties.
“We’re not happy penalizing them at all. It’s an exercise of good corporate governance—submitting your financials and general information sheet to your regulators, complying with the orders of the SEC … There’s a very low compliance level [among companies],” he said.
As of now, the compliance rate of companies stands at 66 percent, according to the SEC.
While this has improved from around 20 percent a few years ago, Aquino said some businesses still failed to prepare their financial statements, resulting in delayed submissions and, therefore, penalties.
The SEC last April 1 issued higher penalties for companies that will be late in filing requirements set by the regulator. Some fines increased by as much as 900 percent.
“We hope they (companies) increase [the compliance rate]. Otherwise, the pain is the higher penalties,” Aquino said. —Meg J. Adonis