SEC Launches ECIP to Help Corporations Regain Good Standing
The Securities and Exchange Commission (SEC) has issued an advisory announcing the launch of the Enhanced Compliance Incentive Plan (ECIP). This initiative is designed to assist corporations that have missed their annual report deadlines to regain good standing.
Under the ECIP, corporations that have fallen into non-compliance, including those designated as “delinquent,” now have a valuable opportunity to rectify their status. By paying a fixed fee of ₱20,000, these corporations can settle their outstanding fines and penalties.
The ECIP also provides significant relief for suspended and revoked corporations, including those with pending petitions for lifting their suspension or revocation orders. Through this incentive plan, these corporations can settle 50% of their assessed fines and secure compliance by paying a petition fee of ₱3,060.
The applications for ECIP will be accepted starting September 2, 2024, to November 30, 2024.
Eligible Corporations
Those corporations eligible for the Enhanced Compliance Incentive Plan include the following Stock and Nonstock Corporations:
- Branch Office
- Representative Office
- Regional Headquarters
- Regional Operating Headquarters of Foreign Company
Exceptions:
Companies whose securities are listed on the Philippine Stock Exchange (PSE);
- whose securities are registered but not listed on the PSE;
- considered as public companies;
- with intra-corporate disputes;
- with disputed GIS;
- with expired corporate terms and
- covered under Section 17.2 of Republic Act 8799 or the Securities Regulation Code
Covered Violations
The following are the violations covered by the Enhanced Compliance Initiative Program:
- Non-filing of the General Information Sheet (GIS) for the latest and prior years;
- Late filing of GIS for the latest and prior years;
- Non-filing of Financial Statements (AFS), whether audited or certified, including fines for the non-filing of the attachments required for certain corporations for the latest and prior years and
- Late filing of AFS, including fines for the late filing of the attachments required for certain corporations for the latest and prior years
