Business Consulting BlogIncorporationLegal BlogSEC releases MC No. 28, imposes penalty for non-compliance

November 25, 20200
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On October 27, 2020, the Securities and Exchange Commission (SEC) has published Memorandum Circular No. 28 which requires Corporations, Partnerships, Associations, and Individuals to designate an e-mail address and cellphone number for transactions with the SEC. Registered companies must comply within sixty (60) days from effectivity of the circular (31 October 2020) or on or before December 31, 2020.

The new memo will also cover pending registrations and future applications with SEC where covered companies and individuals must provide a valid e-mail address and local mobile number in the SEC registration forms and such must be submitted within thirty (30) days from the issuance of the certificate of registration, license, or authority.

Furthermore, the email address and contact number must be controlled by any of the following:

  1. Corporate Secretary (for domestic corporations);
  2. Resident Agent (for foreign corporations);
  3. Managing Partner (for partnerships);
  4. Individual charged with the administration and management of a One Person Corporation; or
  5. Duly authorized representative*

*The corporation, partnership, or association must submit proof of authority of said representative (i.e., Special Power of Attorney or Secretary’s Certificate).

Penalties for non-compliance

Covered entities and individuals who will not comply with the new circular will be fined for Php 10,000.00.

Contact us know how you can fulfill this new requirement from SEC. Talk to one of our consultants by calling +63 (02) 8540-9623 or drop us an email at info@tripleiconsulting.com.

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IMPORTANT UPDATE as of December 28, 2020: The SEC has allowed extension of filing until February 22, 2021 giving more time for entities and covered individuals alike to comply with this new compliance.

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