SEC aims to speed up case resolution process

MANILA, Philippines — The Securities and Exchange Commission (SEC) has issued new procedural rules aimed at accelerating the resolution of cases and simplifying regulatory processes.

In a statement, SEC said it had released Memorandum Circular No. 08, series of 2026, which contains the 2026 Rules of Procedure of the Securities and Exchange Commission (2026 SEC ROP).

These new rules update the SEC’s procedures in line with its powers under the Securities Regulation Code, the Revised Corporation Code of the Philippines and the Financial Products and Services Consumer Protection Act.

The updated rules replace the 2016 SEC Rules of Procedure and are intended to simplify adjudicative and administrative processes, reduce delays and ensure faster and more consistent case disposition.

SEC chair Francis Lim said the new framework reflects the commission’s continued efforts to strengthen its adjudicative and administrative systems.

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‘Regulatory uncertainty’

“By clarifying processes and eliminating unnecessary procedural steps, the 2026 SEC ROP enhances regulatory certainty while reinforcing due process,” Lim said, noting that the reforms would help the SEC exercise its expanded powers more efficiently as the country’s corporate and securities regulator.

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Among the key changes is the removal of motions for reconsideration of decisions issued by operating departments and extension offices. Instead, parties seeking reversal must file direct appeals before the Commission En Banc.

The rules also prohibit motions for extension of time and motions to declare default, with automatic decision-making applied when parties fail to respond within prescribed periods.

The new procedures allow the SEC to conduct conferences before issuing final decisions, enabling parties to explore amicable settlement, agree on facts and streamline hearings.

The SEC may also take administrative notice of documents already in its records, such as general information sheets and financial statements, to reduce costs and speed up proceedings.

Digitalization

As part of its digitalization push, the SEC has designated email as the primary mode of filing and service.

While initial pleadings may still be filed via registered mail, courier, or electronic mail, subsequent submissions must be made online unless otherwise allowed. SEC issuances will likewise be served electronically through registered corporate email addresses.

The rules also consolidate enforcement powers, including the issuance of cease and desist orders against fraudulent activities. These orders may be issued under various laws, with validity periods ranging from 10 to 20 days depending on the legal basis.

Meanwhile, orders such as license suspensions, revocations and takeover directives are immediately executory unless restrained by higher authorities such as the Court of Appeals or the Supreme Court.

The SEC said the new procedural rules are expected to strengthen enforcement mechanisms, promote faster resolution of disputes and provide greater clarity and predictability for companies, investors and other market participants. /dda