Connect with us

Hi, what are you looking for?


SEC drafts additional penalties for late disclosures

THE Securities and Exchange Commission (SEC) drafted an amendment to the 2019 Revision of General Information Sheet (GIS) which will increase and add non-financial penalties for late disclosures.

In a notice posted last week, the SEC introduced an amendment to Section 11 of the SEC MC No. 15, series of 2019 (also known as the 2019 Revision of GIS) in which it increased the penalties for late disclosures by five times.

The regulator plans to increase the penalty on stock corporations for late disclosure to P50,000 for the first violation, from P10,000; P100,000 for the second violation, from P20,000; P250,000 for the third violation, from P50,000; and P500,000 for the fourth and subsequent violations, from P100,000.

Meanwhile, for non-stock corporations, the first violation penalty will be P25,000 from P5,000; P50,000 for the second violation, from P10,000; P100,000 for the third violation, from P20,000; and P250,000 for the fourth and subsequent violations, from P50,000.

Stock or non-stock corporations with total assets of P500,000 to P5 million will have twice the amount of penalty imposed on those with less than P500,000 assets.

For firms with total assets of P5 million to P10 million, the penalty will be thrice the amount imposed on those with less than P500,000 assets.

Meanwhile, those with more than P10 million in assets will have four times the penalties imposed on those with less than P500,000 in assets.

The SEC also added that if a corporation fails to submit the updated GIS in a timely manner at least three times consecutively or intermittently within a period of five years, the commission after due notice and hearing will declare the firm suspended.

Additionally, the SEC said that if corporations that received notice of incomplete disclosure fail to submit complete beneficial ownership information within 15 calendar days, they will be penalized.

For stock or non-stock corporations with total assets of less than P500,000, a penalty of P250,000 will be imposed, while for those with P500,000 to less than P5 million in assets, the penalty will be P500,000.

Meanwhile, corporations with P5 million to P10 million will have a P1 million penalty, while those with more than P10 million in assets will have a P2 million penalty.

After due notice and hearing, a company’s second violation will result in suspension and the third violation will result in the revocation of its certificate of incorporation

The liability of directors, trustees, and officers will also be amended to a penalty increase of 100% or two times of what was stated in the 2019 revision.

The SEC also added an amendment to Section 3 of the memorandum wherein it stated that it will no longer accept the submission of any GIS without the declaration of beneficial ownership information. — Justine Irish D. Tabile

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



UNSPLASH THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes...


MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...


UNSPLASH END-OF-LIFE CARE will benefit from conversations about spirituality and the limits of the human body, according to a priest.   “If we want to...


A SCENE from Giacomo Puccini’s opera Turandot in Turkey AFTER a two-year hiatus, live opera returns to the Main Theater of the Cultural Center...


CEBU AIR, Inc. (CEB) said recent leadership changes in the company form part of its succession planning as it seeks continued growth and to...


MASS HOUSING developer Ovialand, Inc. has secured a P600-million loan facility from Security Bank Corp. for its expansion plans. Ovialand said in a press...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.