The Philippines Securities and Exchange Commission (SEC) issued Memorandum Circular No. 13, Series of 2024, introducing the Enhanced Compliance Incentive Plan (ECIP). This circular follows the successful Amnesty Program of 2023. It aims to help delinquent and non-compliant corporations restore their good standing by offering reduced fees and penalties for delayed reportorial submissions.
Under the ECIP, non-compliant corporations, including those failing to submit their General Information Sheet (GIS) or Annual Financial Statement (AFS), can settle their fines and penalties for a reduced fee of PHP 20,000. However, they must also comply with submitting their latest reportorial requirements and follow the mandates of Memorandum Circular No. 28, Series of 2020, which requires entities to designate and submit official email addresses and mobile phone numbers to the SEC. Suspended or revoked corporations seeking reinstatement can settle 50% of their assessed fines and a petition fee of PHP 3,060.
The ECIP application period is from September 2 to November 30, 2024, and corporations must submit their applications using the SEC’s Electronic Filing and Submission Tool (eFAST). It is important to note that paying the ECIP fee does not automatically restore a corporation’s compliant status or lift suspensions or revocations; they must also submit all required documents. Failure to complete the requirements within the prescribed period will result in the forfeiture of the ECIP fees.
