a. registered corporations with no secondary license€¦ · 1 consolidated scale of fines a....

1

CONSOLIDATED SCALE OF FINES

A. REGISTERED CORPORATIONS WITH NO SECONDARY LICENSE

(1) STOCK CORPORATIONS

Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT

1.1 REPORTORIAL REQUIREMENTS LEGAL BASIS/

SUBJECT REPORT VIOLATION FIRST OFFENSE

(Amounts in Pesos) SECOND OFFENSE (Amounts in Pesos)

THIRD OFFENSE (Amounts in Pesos)

Section 141 of the Corporation Code of the Philippines (CCP) GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to P100,000: 500 100,001 to 500,000: 1,500 500,001 to 5,000,000: 2,500 5,000,001 to 10,000,000: 3,500 Above 10,000,000: 5,000

Total fine plus 10% of the total fines

computed

Total fine plus 15% of the total fine

computed

Section 141 of the CCP GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

NON-FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to P100,000: 1,000 100,001 to 500,000: 3,000 500,001 to 5,000,000:5,000 5,000,001 to 10,000,000: 7,000 Above 10,000,000: 10,000


computed


computed

2

LEGAL BASIS/ SUBJECT REPORT

VIOLATION FIRST OFFENSE (Amounts in Pesos)

SECOND OFFENSE (Amounts in Pesos)


Section 68 of the Securities Regulation Code (SRC); SRC Rule 68 ANNUAL FINANCIAL STATEMENTS

MATERIAL DEFICIENCY The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 500 100,001 to 500,000: 1,000 500,001 to 5,000,000: 2,000 5,000,001 to 10,000,000: 3,000 Above 10,000,000: 4,000

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 1,000 100,001 to 500,000: 2,000 500,001 to 5,000,000: 4,000 5,000,001 to 10,000,000: 6,000 Above 10,000,000: 8,000

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 2,000 100,001 to 500,000: 4,000 500,001 to 5,000,000:

8,000 5,000,001 to 10,000,000:

12,,000 Above 10,000,000: 16,000

Section 68 of the SRC; SRC Rule 68 ANNUAL FINANCIAL STATEMENTS

MATERIAL MISSTATEMENT OR MISREPRE-SENTATION

An amount based on the above scale or 1/10 of 1% of the amount of misstatement,

whichever is higher


whichever is higher

An amount based on the above scale or 4/10 of 1%

of the amount of misstatement, whichever is

higher

OTHER NON-COMPLIANCE WITH THE REQUIREMENTS OF SRC RULE 68

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 200 100,001 to 500,000: 300 500,001 to 5,000,000 : 500 5,000,001 to 10,000,000: 1,000 Above 10,000,000: 2,000

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 400 100,001 to 500,000: 600 500,001 to 5,000,000 : 1,000 5,000,001 to 10,000,000: 2,000 Above 10,000,000: 4,000

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 800 100,001 to 500,000: 1,200 500,001 to 5,000,000 : 2,000 5,000,001 to 10,000,000: 4,000 Above 10,000,000: 8,000

3

1.2 . OTHER REQUIREMENTS (These are also applicable to corporations with secondary license and public companies) LEGAL BASIS/

REQUIREMENT




Section 16 of CCP CORPORATE NAME

Changes in the corporate name without amendment of the Articles of Incorporation

5,000

5,000

5,000

Section 16 of CCP PRINCIPAL OFFICE ADDRESS

Changes in the Principal Office Address without amendment of the Articles of Incorporation

5,000

5,000

5,000

Section 16 of CCP BOARD OF DIRECTORS

Increase in number of Board of Directors without amendment of the Articles of Incorporation

5,000 5,000 5,000

Section 16 of CCP PURPOSE

Changes in corporate purpose without amendment of the Articles of Incorporation

10,000

10,000

10,000

Section 16 in relation to Section 38 of CCP INCREASE AND DECREASE IN CAPITAL STOCK

Increase and Decrease of the Authorized Capital Stock without amendment of the Articles of Incorporation

10,000

10,000

10,000

4

LEGAL BASIS/ REQUIREMENT




Section 25 of CCP ELECTION OF PRESIDENT AS SECRETARY AND/OR TREASURER

Election of President as Secretary and/ or Treasurer

5,000

5,000

5,000

Section 25 of CCP ELECTION OF A PRESIDENT WHO IS NOT A MEMBER OF THE BOARD

Election of a President who is not a member of the Board or a Stockholder

5,000

5,000

5,000

Section 25 of CCP ELECTION OF A SECRETARY WHO IS NOT A FILIPINO CITIZEN OR A RESIDENT OF THE PHILIPPINES

Election of a Secretary who is not a Filipino

5,000

5,000

5,000

Section 43 of CCP EXCESS IN RETAINED EARNINGS

Stock Corporations are prohibited from retaining surplus profits in excess of one hundred percent (100%) of their paid in capital

Retained Earnings less paid-up capital x.001 or a minimum of

1,000.00

Retained Earnings less paid-up capital x.001 or a minimum of

1,000.00

Retained Earnings less paid-up capital x.001 or a

minimum of 1,000.00

Section 46 of CCP BY-LAWS

Non-Registration 10,000

n/a n/a

Late- Registration

1,000 n/a n/a

Section 48 of CCP FISCAL YEAR

Changes in Fiscal Year without amendment of the By-Laws

5,000

5,000

5,000

5





Section 48 of CCP DATE OF ANNUAL MEETING

Changes in the Annual Date of Meeting without amendment of the By-Laws

5,000 5,000 5,000

Section 50 of CCP NON-HOLDING OF MEETING

Non-holding of Meeting 5,000 5,000 5,000

Foreign Investment Act (FIA) and Memorandum Circular No. 8 Series of 1998 REGISTRATION UNDER FIA

Increase in the Foreign Equity Percentage without prior registration with the Commission

1/5 of 1% of the paid in capital but not less than 10,000

n/a n/a

SEC Memorandum Circular No. 6, Series of 2006 GENERAL FORM FOR FINANCIAL STATEMENTS (GFFS)

Domestic Stock Corporations with annual gross sales or gross revenue of at least P5,000,000 shall submit within thirty (30) days from the last day of submission of the Annual Audited Financial Statements.

Reprimand 1,000 plus

100 per day of delay 1,000 plus

100 per day of delay

Section 74 of CCP STOCK AND TRANSFER BOOK

LATE FILING OF STOCK AND TRANSFER BOOK

2,000

n/a n/a

6

(2) NON-STOCK CORPORATIONS


2.1 REPORTORIAL REQUIREMENTS LEGAL BASIS/





LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 250 100,001 to 500,000 : 750 500,001 to 5,000,000: 1,250 5,000,001 to 10,000,000: 1,750 Above 10,000,000 : 2,500


computed


computed

Section 141 of the CCP GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

NON-FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 50 100,001 to 500,000 : 1,500 500,001 to 5,000,000: 2,500 5,000,001 to 10,000,000: 3,500 Above 10,000,000 : 5,000


computed


computed

7





Section 68 of SRC; SRC Rule 68, as amended ANNUAL FINANCIAL STATEMENTS

MATERIAL DEFICIENCY The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 200 100,001 to 500,000: 300 500,001 to 5,000,000 : 500 5,000,001 to 10,000,000: 1,000 Above 10,000,000: 2,000



Section 68 of SRC; SRC Rule 68 ANNUAL FINANCIAL STATEMENTS

MATERIAL MISSTATEMENT/ MISREPRESEN-TATION


whichever is higher


whichever is higher



higher





8

2.2 OTHER REQUIREMENTS






CHANGES IN THE CORPORATE NAME WITHOUT AMENDMENT OF THE ARTICLES OF INCORPORATION

2,500

2,500

2,500


CHANGES IN THE PRINCIPAL OFFICE ADDRESS WITHOUT AMENDMENT OF THE ARTICLES OF INCORPORATION

2,500

2,500

2,500

Section 16 of CCP BOARD OF TRUSTEES

INCREASE IN NUMBER OF BOARD OF TRUSTEES WITHOUT AMENDMENT OF THE ARTICLES OF INCORPORATION

2,500

2,500

2,500


CHANGES IN CORPORATE PURPOSE WITHOUT AMENDMENT OF THE ARTICLES OF INCORPORATION

5,000

5,000

5,000

Section 25 of CCP ELECTION OF PRESIDENT AS SECRETARY AND/ OR TREASURER

ELECTION OF PRESIDENT AS SECRETARY AND/ OR TREASURER

2,500

2,500

2,500

9





Section 25 of CCP ELECTION OF A PRESIDENT WHO IS NOT A MEMBER OF THE BOARD

ELECTION OF A PRESIDENT WHO IS NOT A MEMBER OF THE BOARD OF TRUSTEES

2,500

2,500

2,500


ELECTION OF A SECRETARY WHO IS NOT A FILIPINO

2,500

2,500

2,500


NON-REGISTRATION 5,000 n/a n/a


LATE- REGISTRATION 500 n/a n/a


CHANGES IN FISCAL YEAR WITHOUT AMENDMENT OF THE BY-LAWS

2,500

2,500

2,500


CHANGES IN THE ANNUAL DATE OF MEETING WITHOUT AMENDMENT OF THE BY-LAWS

2,500

2,500

2,500


NON-HOLDING OF MEETING

2,500 2,500 2,500

Section 6(d) Guidelines on the Imposition of Fines or Penalties for Non-Compliance with the Reportorial Requirements - 2002 (Section 74) MEMBERSHIP BOOK

LATE REGISTRATION OF MEMBERSHIP BOOK

1,000 n/a n/a

10

(3) FOREIGN CORPORATIONS


3.1 STOCK BRANCH OFFICE

3.1.a. REPORTORIAL REQUIREMENTS LEGAL BASIS/




Section 141 of the Corporation Code of the Philippines and Memorandum Circular No. 15 Series of 2006 GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000 : 1,250 100,001 to 500,000: 2,000 500,001 to 5,000,000 : 3,000 5,000,001 to 10,000,000: 4,000 Above 10,000,000: 5,000


computed


computed

Section 141 of the CCP; Memorandum Circular No. 15, Series of 2006 GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

NON-FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000 : 2,500 100,001 to 500,000: 4,000 500,001 to 5,000,000 : 6,000 5,000,001 to 10,000,000: 8,000 Above 10,000,000:10,000


computed


computed

11





Sec. 68 of the SRC; SRC Rule 68 ANNUAL FINANCIAL STATEMENTS

MATERIAL DEFICIENCY The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 500 100,001 to 500,000: 1,000 500,001 to 5,000,000: 2,000 5,000,001 to 10,000,000: 3,000 Above 10,000,000: 4,000

The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 1,000 100,001 to 500,000: 2,000 500,001 to 5,000,000: 4,000 5,000,001 to 10,000,000: 6,000 Above 10,000,000: 8,000


Sec. 68 of the SRC; SRC Rule 68 ANNUAL FINANCIAL STATEMENTS

MATERIAL MISSTATEMENT/ MISREPRESENTATION


whichever is higher


whichever is higher


of the amount of misstatement, whichever

is higher





12

3.1. b. OTHER REQUIREMENTS LEGAL BASIS/

REQUIREMENT




Memorandum Circular No. 15, Series of 2006 AFFIDAVIT OF NON- OPERATION

LATE FILING NON-FILING

1,250

2,500

2,500

5,000

5,000

10,000

Memorandum Circular No. 15 Series of 2006; Section 8 SUBSTITUTION OR ADDITIONAL RESIDENT AGENT

LATE FILING OF PETITION (to change, substitute or add a Resident Agent)

Basic fine: 10,000.00 Additional: 1,000 per month of

delay

Basic fine: 10,000.00 Additional:: 1,000 per month of

delay

Basic fine: 10,000.00 Additional:: 1,000 per

month of delay

Section 126 of CCP SECURITIES DEPOSIT

LATE INITIAL DEPOSIT Basic fine: 10,000.00 Surcharge: 500 per month of

delay

n/a n/a


INADEQUATE OR LATE ADDITIONAL SECURITIES DEPOSIT

Basic fine: 7,000.00 Surcharge: 500 per month of

delay

Basic fine: 7,000.00 Surcharge: 1,000 per month of

delay

Basic fine: 7,000.00 Surcharge: 1,500 per

month of delay


LATE SUBSTITUTION OF MATURED SECURITIES DEPOSITED (within 30 days from the date of maturity)

Basic fine: 10,000 Surcharge: 500 per month of

delay

Basic fine: 10,000 Surcharge: 1,000 per month of

delay

Basic fine: 10,000.00 Surcharge: 1,500 per

month of delay

13





Section 130 of CCP AMENDED ARTICLES OF INCORPORATION AND BY-LAWS OF FOREIGN CORPORATIONS LICENSED TO DO BUSINESS IN THE PHILIPPINES

NON-FILING OR LATE FILING Submission is within sixty (60) days after the amendment becomes effective.

Basic fine: 10,000

Basic fine: 10,000

Basic fine: 10,000


CHANGES IN THE CORPORATE NAME, PURPOSE AND ADDITION OF PURPOSES WITHOUT FILING A PETITION TO AMEND LICENSE

Basic fine: 10,000.00



Section 132 of CCP Articles of Merger and Consolidation of a foreign corporation licensed to do business in the Philippines who is party to a merger or consolidation in its home country or state and filing of withdrawal of license if the absorbed corporation is the foreign corporation doing business in the Philippines

NON-FILING OR LATE FILING OF THE ARTICLES OF MERGER OR WITHDRAWAL OF LICENSE Submission is within sixty (60) days after the amendment becomes effective.




14

3.2 NON-STOCK BRANCH OFFICE/ REPRESENTATIVE OFFICE







LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 750 100,001 to 500,000: 1,500 500,001 to 10,000,0000: 2,500 10,000,001 to 100,000,000: 3,500 Above 100,000,000: 5,000


computed


computed


NON-FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 1,500 100,001 to 500,000: 3,000 500,001 to 10,000,0000: 5,000 10,000,001 to 100,000,000: 7,000 Above 100,000,000: 10,000


computed


computed

15












whichever is higher


whichever is higher -


of the amount of misstatement, whichever

is higher





16

3.2. b. OTHER REQUIREMENTS LEGAL BASIS/

REQUIREMENT VIOLATION FIRST OFFENSE



Memorandum Circular No. 15, Series of 2006 AFFIDAVIT OF NON-OPERATION


1,000

2,000

1,000

2,000

1,000

2,000

Section 8 of CCP; Memorandum Circular No. 15 Series of 2006 SUBSTITUTION OR ADDITIONAL RESIDENT AGENT

LATE FILING OF PETITION (to change, substitute or add a Resident Agent)


delay


delay

Basic fine: 10,000 Surcharge: 1,000 per month

of delay

Section 130 of CCP AMENDED ARTICLES OF INCORPORATION AND BY-LAWS OF FOREIGN CORPORATIONS LICENSED TO DO BUSINESS IN THE PHILIPPINES

NON-FILING OR LATE FILING Submission is within sixty (60) days after the amendment becomes effective.

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000


CHANGES IN THE CORPORATE NAME, PURPOSE AND ADDITION OF PURPOSES WITHOUT FILING A PETITION TO AMEND LICENSE

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000

17

3.3 REGIONAL OPERATING HEADQUARTERS






Section 141 of the Corporation Code of the Philippines; Memorandum Circular No. 15, Series of 2006 GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 1,250 100,001 to 500,000: 2,000 500,001 to 5,000,000: 3,000 5,000,001 to 10,000,000: 4,000 Above 10,000,000: 5,000


computed


computed




computed


computed

18






MATERIAL DEFICIENCY The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000 : 500 100,001 to 500,000 : 1,000 500,001 to 5,000,000 : 2,000 5,000,001 to 10,000,000: 3,000 Above 10,000,000: 4,000

The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000 : 1,000 100,001 to 500,000 : 2,000 500,001 to 5,000,000 : 4,000 5,000,001 to 10,000,000: 6,000 Above 10,000,000: 8,000

The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000 : 2,000 100,001 to 500,000 : 4,000 500,001 to 5,000,000 : 8,000 5,000,001 to 10,000,000: 12,000 Above 10,000,000: 16,000




whichever is higher


whichever is higher

An amount based on the above scale or 4/10 of 1% of

the amount of misstatement, whichever is

higher





19

3.3.b. OTHER REQUIREMENTS LEGAL BASIS/




Memorandum Circular No. 15 Series of 2006; Articles 58 & 59 of the Omnibus Investments Code

Initial Remittance of at least US$200,000 or its equivalent in other foreign currencies converted to Philippine currency (within 30 days after the issuance of the license)

Basic fine of 10,000 Surcharge: 500 per month of

delay

n/a

n/a

Memorandum Circular No. 15, Series of 2006 AFFIDAVIT NON-OPERATION


1,250

2,500

2,500

5,000

5,000

10,000


Changes in the corporate name, purpose and addition of purposes without filing a petition to amend license




3.4. REGIONAL AREA HEADQUARTERS






Section 141 of CCP; Memorandum Circular No. 15 Series of 2006

LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements


computed


computed

20





GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS

Up to 100,000: 750 100,001 to 500,000: 1,500 500,001 to 10,000,000: 2,500 10,000,001 to 100,000,000: 3,500 Above 100,000,000: 5,000

Section 141 of CCP; Memorandum Circular No. 15 Series of 2006 GENERAL INFORMATION SHEETS AND ANNUAL FINANCIAL STATEMENTS



computed


computed





21








whichever is higher


whichever is higher

An amount based on the above scale or 4/10 of 1% of

the amount of misstatement, whichever is

higher





3.4.b OTHER REQUIREMENTS LEGAL BASIS/




Memorandum Circular No. 15,Series of 2006; Article 58 & 59 of the Omnibus Investments Code Initial Remittance of at least US$50,000 or its equivalent in other foreign currencies converted to Philippine currency (within 30 days after the issuance of the license)

Failure to remit the required amount within the prescribed period Basic fine of 10,000

Surcharge: 500 per month of delay

n/a n/a

22





Memorandum Circular No. 15 Series of 2006; Article 58 &59 of the Omnibus Investments Code Annual Remittance of at least US$50,000 or its equivalent in other foreign currencies, converted to Philippine currency (within 30 days from the anniversary date of the issuance of the license)

Failure to remit the required amount within the prescribed period

Basic Fine - .003 of the actual remittance

Surcharge of 500 per month of delay


Surcharge of 1,000 per month of delay


Surcharge of 1,500 per month of delay

Memorandum Circular No. 15 Series of 2006 AFFIDAVIT OF NON-OPERATION


1,250

2,500

2,500

5,000

5,000

10,000


Changes in the corporate name, purpose and addition of purposes without filing a petition to amend license

Basic fine: 5000.00



23

(4) FOUNDATIONS

Department in Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT

4.1. REPORTORIAL REQUIREMENTS


VIOLATION SECOND OFFENSE (Amounts in Pesos)



LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 250 100,001 to 500,000 : 750 500,001 to 5,000,000: 1,250 5,000,001 to 10,000,000: 1,750 Above 10,000,000 : 2,500


computed


computed


NON-FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to 100,000: 500 100,001 to 500,000 : 1,500 500,001 to 5,000,000: 2,500 5,000,001 to 10,000,000: 3,500 Above 10,000,000 : 5,000


computed


computed


MATERIAL DEFICIENCY The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 200 100,001 to 500,000: 300 500,001 to 5,000,000 : 500

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 400 100,001 to 500,000: 600 500,001 to 5,000,000 : 1,000

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 800 100,001 to 500,000: 1,200

24




5,000,001 to 10,000,000: 1,000 Above 10,000,000: 2,000

5,000,001 to 10,000,000: 2,000 Above 10,000,000: 4,000

500,001 to 5,000,000 : 2,000 5,000,001 to 10,000,000: 4,000 Above 10,000,000: 8,000

Sec. 68 of the SRC; SRC Rule 68 SUPPORTING DOCUMENTS TO THE FINANCIAL STATEMENTS: Sworn Statement by the President and Treasurer of the Sources, Amount and Application of Funds and Program/Activity Planned, Ongoing and Accomplished (SS) with Certificate of Existence of Program/Activity issued by the Mayor, Barangay Chairman, DSWD, DOH and/or recipient (COEP)


2,500

5,000

5,000

10,000

10,000

20,000




whichever is higher


whichever is higher



higher


The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 200 100,001 to 500,000: 300 500,001 to 5,000,000 : 500

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 400 100,001 to 500,000: 600 500,001 to 5,000,000 : 1,000

The basis of penalty is the "Total Assets" reported in the Latest Financial Statements Up to 100,000: 800 100,001 to 500,000: 1,200

25




5,000,001 to 10,000,000: 1,000 Above 10,000,000: 2,000

5,000,001 to 10,000,000: 2,000 Above 10,000,000: 4,000

500,001 to 5,000,000 : 2,000 5,000,001 to 10,000,000: 4,000 Above 10,000,000: 8,000

4.2. OTHER REQUIREMENTS LEGAL BASIS/





Changes in the corporate name without amendment of the Articles of Incorporation

2,500

2,500

2,500


Changes in the Principal Office Address without amendment of the Articles of Incorporation

2,500

2,500

2,500

Section 16 of CCP BOARD OF TRUSTEES

Increase in number of Board of Trustees without amendment of the Articles of Incorporation

2,500

2,500

2,500


Changes in corporate purpose without amendment of the Articles of Incorporation

5,000

5,000

5,000

26





Section 25 of CCP ELECTION OF PRESIDENT AS SECRETARY AND/ OR TREASURER

Election of President as Secretary and/or Treasurer

2,500

2,500

2,500

Section 25 of CCP ELECTION OF A PRESIDENT WHO IS NOT A MEMBER OF THE BOARD OR A STOCKHOLDER

Election of a President who is not a member of the Board of Trustees

2,500

2,500

2,500


Election of a Secretary who is not a Filipino

2,500

2,500

2,500


NON-REGISTRATION OF BY-LAWS

5,000

n/a

n/a


LATE REGISTRATION OF BY-LAWS

500

n/a

n/a


CHANGES IN FISCAL YEAR WITHOUT AMENDMENT OF THE BY-LAWS

2,500

2,500

2,500


CHANGES IN THE ANNUAL DATE OF MEETING WITHOUT AMENDMENT OF THE BY-LAWS

2,500

2,500

2,500

27






NON-HOLDING OF MEETING

2,500

2,500

2,500

MEMBERSHIP BOOK LATE FILING OF MEMBERSHIP BOOK

1,000 n/a n/a

B. REGISTERED CORPORATIONS WITH SECONDARY LICENSE

(5) LENDING COMPANIES

Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT 5.1. LICENSING REQUIREMENT





Section 4 of LCRA of 2007; Rule 3(b) of its IRR

Engaging in Lending Activities without Registration as Corporation

50,000 n.a. n.a.

Sec. 4 of LCRA of 2007; Rule 3(b) of its IRR CERTIFICATE OF AUTHORITY (CA) FOR HEAD OFFICE

Operating a Lending Company Head Office without a Certificate of Authority from SEC

10,000 plus daily penalty and for blacklisting and revocation

of primary franchise (for continuous non-compliance)

n.a. n.a.

28

Sec. 4 of LCRA of 2007; Rule 3(c) of its IRR CA FOR BRANCH OFFICE

Operating a Branch, Extension, Satellite or Unit Office without a Certificate of Authority from SEC

10,000 plus 100 daily penalty 15,000 plus 100 daily penalty Suspension of CA

5.2. REPORTORIAL REQUIREMENTS LEGAL BASIS/




Sec. 9 of LCRA of 2007; Rule 8(a) of its IRR AUDITED FINANCIAL STATEMENTS

LATE-FILING

10,000 plus 100 daily


Suspension of CA

NON-FILING


Sections 68 and 54 of the Securities Regulation Code ANNUAL FINANCIAL STATEMENTS

MATERIAL MISSTATEMENT OR MISREPRESENTATION IN THE AFS

1/10 of 1% of the amount of misstatement

1/20 of 1% of the amount of misstatement

P30,000 or 1/30 of 1% of the amount of misstatement

MATERIAL DEFICIENCY 1,000 or 500 per material deficiency,

whichever is higher

2,000 or 1,000 per material deficiency,

whichever is higher

4,000 or 2,000 per material deficiency,

whichever is higher


10,000 20,000 30,000

29





Sec. 9 of LCRA of 2007; Rule 8(a) of its IRR INTERIM FINANCIAL STATEMENTS

LATE-FILING NON-FILING


10,000 plus 100 daily penalty



Suspension of CA

Suspension of CA

Sections 68 and 54 of SRC INTERIM FINANCIAL STATEMENTS

MATERIAL MISSTATEMENT OR MISREPRESENTATION

10,000 per FS or 500 per material deficiency, whichever is higher

15,000 per FS or P1,000 per material deficiency, whichever is higher

30,000 per FS or 2,000 per material deficiency, whichever is higher

MATERIAL DEFICIENCY 10,000 or 1/10 of 1% of the amount of misstatement,

whichever is higher

20,000 or 1/20 of 1% of the amount of misstatement,

whichever is higher


whichever is higher


P10,000 P20,000 P30,000

Sec. 9 of LCRA of 2007; Rule 8(a) of its IRR SPECIAL FORM OF FINANCIAL STATEMENTS (LCFS) (hard and soft copies)






Suspension of CA

Suspension of CA

Section 141 of the CCP GENERAL INFORMATION SHEET

LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements

Total fine plus 10% of the total fines computed


computed

30





Up to P100,000: 500 100,001 to 500,000: 1,500 500,001 to 5,000,000: 2,500 5,000,001 to 10,000,000: 3,500 Above 10,000,000: 5,000

Section 141 of CCP GENERAL INFORMATION SHEET



computed


Computed

Rule 17.1(2)(c) of the Amended IRR of SRC ANNUAL INFORMATION STATEMENT FOR ISSUERS OF COMMERCIAL PAPERS

LATE FILING



Suspension of CA

NON-FILING



Suspension of CA

INCOMPLETE REPORT 10,000 plus 100 daily penalty


Suspension of CA

Rule 17.1(2)(c) of the Amended IRR of SRC QUARTERLY REPORT FOR ISSUERS OF COMMERCIAL PAPERS

LATE FILING



Suspension of CA

NON-FILING


INCOMPLETE REPORT 10,000 15,000 20,000

31





SEC MC no. 2, S. of 2010 REVISED ANTI-MONEY LAUNDERING OPERATING MANUAL

LATE FILING


n.a. n.a

NON-FILING


n.a. n.a.

Sec. 74 of CCP STOCK AND TRANSFER BOOK

LATE REGISTRATION

2,000

n/a

n/a

5.3. OPERATIONAL, PRUDENTIAL, OTHER REQUIREMENTS LEGAL BASIS/

SUBJECT REPORT




Sec. 9 of LCRA of 2007; Rule 3(e) of its IRR COMMENCEMENT OF OPERATION WITHIN 120 DAYS

FAILURE TO COMMENCE OPERATION WITHIN 120 DAYS FROM THE DATE OF GRANT OF CA (MAIN AND/OR BRANCH)

10,000

20,000 Suspension of CA

Sec. 9 of LCRA of 2007; Rule 3(d)(ii) of its IRR ANNUAL FEE

LATE PAYMENT OF ANNUAL FEE



Suspension of CA

NON-PAYMENT OF ANNUAL FEE



Suspension of CA

Sec. 7 of LCRA of 2007; Rule 6(b) of its IRR, SEC MC 7, S. of 2011 DISCLOSURE STATEMENT

Failure to furnish a debtor with a disclosure statement that is compliant with the requirements of BSP Circular No. 730 dated July 20, 2011

20,000 plus 100 per day of continuing violation



32





Sec. 9 of LCRA of 2007; Rule 8(a) of its IRR; Sections 54 and 68 of SRC ACCREDITATION OF EXTERNAL AUDITOR

FAILURE TO ENGAGE THE SERVICES OF AN EXTERNAL AUDITOR W/O GROUP C OR HIGHER (A OR B) SEC ACCREDITATION

25,000 50,000 100,000

Sec.9 of LCRA of 2007; Rule 3(g) of its IRR INVESTMENT IN REAL ESTATE SHALL NOT EXCEED 25% OF THE COMPANY’S NETWORTH

BREACH OF LIMIT

1% of the amount of investment in real estate in

excess of 25% of the company’s networth



Suspension of CA

Sec. 9 of LCRA of 2007; Rule 3(h) TOTAL CREDIT EXTENDED TO THE COMPANY’S DIRECTORS, OFFICERS, STOCKHOLDERS AND RELATED INTERESTS (DOSRI) SHALL NOT EXCEED 15% OF THE COMPANY’S NETWORTH

BREACH OF LIMIT

1% of the amount of credit extended in excess of 15% of

the company’s networth



Suspension of CA

Sec 9 of LCRA of 2007; Rule 3(i) of its IRR TOTAL CREDIT EXTENDED TO ANY PERSON, WHETHER INDIVIDUAL, PARTNERSHIP OR CORPORATION (SINGLE BORROWER LIMIT) SHALL NOT EXCEED 30% OF THE COMPANY’S NETWORTH

BREACH OF LIMIT 1% of the amount of credit extended in excess of 30% of




Suspension of CA

33





Sec. 9 of LCRA of 2007; Rule 3(f) MORE THAN 50% OF THE FUNDS MUST BE USED IN LENDING ACTIVITIES

PRESCRIBED RATIO NOT MET

1% of the amount of deficiency 3% of the amount of deficiency Suspension of CA

Sec 12 of LCRA of 2007; Rule 10 of its IRR INFORMATION IN THE IN ANY APPLICATION FOR, PERSONAL INFORMATION SHEET, REPORTS, AND OTHER DOCUMENTS REQUIRED TO BE SUBMITTED TO THE COMMISSION (OTHER THAN AFS AND INTERIM FS)

MISREPRESENTATION OR MISSTATEMENT

20,000 P30,000 Suspension of CA

Sec. 5 of LCRA of 2007; Rule 4 of its IRR MINIMUM REQUIRED CAPITAL

Failure to comply with the required capital and/or maintain a net worth of not less than the minimum required Paid-up Capital

1% of the amount of deficiency 3% of the amount of deficiency Suspension of CA

Corporation Code of the Philippines (CCP) REQUIREMENTS FOR A STOCK CORPORATION

VIOLATIONS OF ANY OF THE PROVISIONS OF THE CCP

(Please see pages 3 to 5

of this Scale)


of this Scale)


of this Scale)

34

(6) FINANCING COMPANIES Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT

6.1. LICENSING REQUIREMENT LEGAL BASIS VIOLATION FIRST OFFENSE



SEC 2 of the IRR of the Financing Company Act (FCA)

Engaging in Financing Activities without Certificate of Authority

P 100,000 n.a. n.a.

Sec. 7(c) of FCA of 1998; Sec 4& 5, IRR CERTIFICATE OF AUTHORITY (CA) FOR HEAD OFFICE

Operating a Financing Company Head Office without a Certificate of Authority from SEC

10,000 plus 100 per day

n/a

n/a

Section 6(a), IRR CERTIFICATE OF AUTHORITY (CA) FOR BRANCH

Operating a Financing Company Branch office without a Certificate of Authority from SEC


20,000 plus 100 per day 30,000 plus 100 per day





Section 13(b), IRR AUDITED FINANCIAL STATEMENTS








35





Sections 54 and 68 of SRC; SRC Rule 68 AUDITED FINANCIAL STATEMENTS

MATERIAL DEFICIENCY 10,000 per AFS or 1,000 per material deficiency, whichever is higher

20,000 per AFS or 2,000 per material deficiency, whichever is higher




whichever is higher


whichever is higher


whichever is higher


10,000 20,000 30,000

Sections 54 and 68 of SRC SPECIAL FORM OF FINANCIAL STATEMENTS

LATE-FILING




NON-FILING 2,000 plus 100 per day 4,000 plus 100 per day


MATERIAL DEFICIENCY OR MATERIAL DISCREPANCY WITH ANNUAL FINANCIAL STATEMENTS

1,000 2,000 4,000

Section 13(a), IRR QUARTERLY FINANCIAL STATEMENTS (up to December 2007 only)








36





Sections 54 and 68 of SRC; SRC Rule 68 QUARTERLY FINANCIAL STATEMENTS (up to December 2007 only)

MATERIAL DEFICIENCY MATERIAL MISSTATEMENT OR MATERIAL MISREPRESENTATION

SEC MC No. 3, S. of 2007 INTERIM FINANCIAL STATEMENTS (from January 2008 to present)








MATERIAL DEFICIENCY 10,000 per FS or 500 per material deficiency, whichever is higher1

15,000 per FS or 1,000 per material deficiency, whichever is higher1

30,000 per FS or 2,000 per material deficiency, whichever is higher1

MATERIAL MISSTATEMENT OR MATERIAL MISREPRESENTATION


whichever is higher1






10,000 20,000 30,000


LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to P100,000: 500 100,001 to 500,000: 1,500 500,001 to 5,000,000: 2,500 5,000,001 to 10,000,000:



Computed

37





3,500 Above 10,000,000: 5,000




computed


Computed

Anti-Money Laundering Act, as amended ANTI-MONEY LAUNDERING MANUAL

LATE-FILING


n/a

n/a

NON-FILING

25,000 plus 100 daily penalty n/a

n/a

Revised Code on Corporate Governance MANUAL ON CORPORATE GOVERNANCE

LATE-FILING



Suspension of CA

NON-FILING


Revised Code on Corporate Governance CERTIFICATION BY THE SECRETARY ON THE ATTENDANCE OF DIRECTORS TO MEETING

LATE-FILING



Suspension of CA

NON-FILING


38





Revised Code on Corporate Governance CERTIFICATION BY THE COMPLIANCE OFFICERS ON THE EXTENT OF COMPLIANCE WITH MANUAL ON CORPORATE GOVERNANCE

LATE-FILING



Suspension of CA

NON-FILING


Revised Code on Corporate Governance; Section 54 of SRC OTHER REQUIREMENTS, INCLUDING COMPLIANCE WITH OTHER REPRESENTATIONS IN THE MANUAL OF CORPORATE GOVERNANCE

NON-COMPLIANCE WITH ANY OF THE REQUIREMENTS

10,000

20,000

Suspension of CA

Sec. 17.1 of SRC; SRC Rule 17.1.2.C ANNUAL INFORMATION STATEMENT FOR ISSUER OF COMMERCIAL PAPERS

LATE FILING




NON-FILING




INCOMPLETE REPORT 10,000 plus 100 per day 20,000 plus 100 per day 40,000 plus 100 per day

Sec. 17.1 of SRC; SRC Rule 17.1.2.C QUARTERLY REPORT FOR ISSUERS OF COMMERCIAL PAPERS

LATE FILING



Suspension of CA

NON-FILING



Suspension of CA

INCOMPLETE REPORT

10,000

15,000

20,000

Sec 74 of CCP STOCK AND TRANSFER BOOK

LATE REGISTRATION

2,000

n/a

n/a

39

6.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS LEGAL BASIS/

SUBJECT REQUIREMENTS VIOLATION FIRST OFFENSE



Section 5(b)/6d, IRR COMMENCEMENT OF OPERATIONS

FAILURE TO OPERATE WITHIN 120 DAYS FROM GRANT OF CA (MAIN AND/OR BRANCH OFFICE)

10,000 20,000 30,000

Section 8, IRR ANNUAL FEE

LATE PAYMENT

10,000 plus 100 per day 20,000 plus 100 per day 30,000 plus 100 per day

NON-PAYMENT


Section 9(a), IRR INVESTMENT IN REAL ESTATE SHALL NOT EXCEED 25% OF THE COMPANY’S NETWORTH

BREACH OF LIMIT


excess of 25% of the compa-ny’snetworth




excess of the compa-ny’snetworth

Section 9(b), IRR INVESTMENT OF MORE THAN 50% OF FUNDS MUST BE USED IN FINANCING ACTIVITIES

FUNDS USED IN FINANCING ACTIVITIES BELOW THE THRESHOLD







Section 9(d), IRR TOTAL CREDIT EXTENDED TO ANY PERSON, CORPORATION OR FIRM SHALL NOT EXCEED 30% OF THE COMPANY’S NETWORTH (SINGLE BORROWER LIMIT)

TOTAL CREDIT EXTENDED TO A SINGLE BORROWER EXCEEDS LIMITS







40

LEGAL BASIS/ SUBJECT REQUIREMENTS




Section 9(e), IRR UNCOLLECTED INTEREST INCOME SHALL NOT BE RECOGNIZED ON LOANS AND LEASE RECEIVABLES THAT REMAIN OUTSTANDING BEYOND THEIR MATURITY DATE

INCORRECT RECOGNITION OF UNCOLLECTED INCOME

1% of the amount of uncollected interest income

outstanding beyond maturity date





Section 9(f), IRR SETTING OF 100% ALLOWANCE FOR PROBABLE LOSSES IF THE CRITERIA IS MET

FAILURE TO SET UP 100% ALLOWANCE FOR PROBABLE LOSSES DESPITE PRESENCE OF

1% of the amount of deficiency

2% of the amount of deficiency 6% of the amount of deficiency

Sections 11, 2(b) & 6(c),IRR REQUIRED PAID-UP CAPITAL

FAILURE TO COMPLY WITH THE REQUIRED PAID-UP CAPITAL AND/OR MAINTAIN A NETWORTH OF NOT LESS THAN THE MINIMUM REQUIRED PAID-UP CAPITAL

1% of the amount of deficiency

2% of the amount of deficiency 6% of the amount of deficiency

SEC MC No. 7, S. of 2011 PROVIDE A DISCLOSURE STATEMENT TO A BORROWER

FAILURE TO FURNISH A DEBTOR WITH DISCLOSURE STATEMENT THAT IS COMPLIANT WITH BSP CIRCULAR NO. 730 DATED JULY 20, 2011

20,000 plus 100 per day of continuing

violation



violation

41





Section 68 of SRC; SRC Rule 68 ACCREDITATION OF EXTERNAL AUDITOR

FAILURE TO ENGAGE THE SERVICES OF AN EXTERNAL AUDITOR W/O GROUP C OR HIGHER (A OR B) SEC ACCREDITATION

25,000 50,000 100,000




of this Scale)


of this Scale)


of this Scale)

(7) ISSUERS OF SECURITIES TO THE PUBLIC (LISTED COMPANIES, ISSUERS OF REGISTERED & UNLISTED SECURITIES, MUTUAL FUNDS,

EXCHANGE TRADED FUNDS) AND PUBLIC COMPANIES

Department in Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT

7.1. REGISTRATION OF SECURITIES

LEGAL BASIS/ REQUIREMENTS

VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Sections 8 and 12 of the Securities Regulation Code (SRC);

Selling or distribution of securities to the public without prior registration or permit to sell

5% of the amount of each transaction or 10,000 per

transaction but not less than 300,000.




transaction but not less than 1,000,000.

42



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Sections 7 and 24 of ICA (for mutual funds); Section 7 of ETF Rules (for exchange traded funds) REGISTRATION OF SECURITIES PRIOR TO PUBLIC OFFERING AND SALE

Selling or distribution of securities to the public without prior registration or permit to sell






transaction but not less than 1,000,000.

Offering for sale of securities to the public without prior registration or permit to sell

Maximum 1,000,000

(amount may be adjusted depending on mitigating circumstance present)

[see page no. of Circular]

Maximum 1,000,000


[see page no. of the Circular]

Maximum 1,000,000


[see page no. of the Circular]

7.2. EXEMPTION FROM REGISTRATION OF SECURITIES LEGAL BASIS/

REQUIREMENTS VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 10 of SRC; SRC Rule 10.1 FILING OF NOTICE OF EXEMPTION PURSUANT TO SRC RULE 10.1 (K AND L)

LATE FILING OF NOTICE

10,000 plus 100 per day of delay

For listed companies:








43



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

NON-COMPLIANCE WITH THE DISCLOSURE REQUIREMENTS UNDER SRC RULE 10.1









120,000 plus 1,000 per day of delay

Section 10.2 of SRC FILING OF REPORT SHOWING NAMES OF OPTIONEES AND NUMBER OF SHARES SUBSCRIBED AND AMOUNT PAID

LATE FILING OF REPORT 10,000 plus 100 per day of delay in filing the report


20,000 plus 100 per day of delay in filing the report







NON-FILING OF REPORT






150,000.00 plus 300 per day of delay in filing the report




44

7.3. AMENDMENT OF REGISTRATION STATEMENT OF ISSUERS OF SECURITIES TO THE PUBLIC



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 14 of SRC; SRC Rule 14 AMENDMENT OF REGISTRATION STATEMENT TO REFLECT A MATERIAL CHANGE

FAILURE TO AMEND REGISTRATION STATEMENT IN ACCORD ANCE WITH SRC RULE 14 Change in the Qualitative Terms and Conditions of the Securities including work program or use of proceeds

10,500 plus

100 per day of delay of the filing of the amendment

21,000 plus


63,000 plus


INCREASE IN THE NUMBER OF SHARES OR OFFERING PRICE PER SHARE (IN EXCESS OF THE PRICE RANGE, IF ANY) WITHOUT PRIOR APPROVAL OF THE AMENDMENT

5% of the amount of each sale in excess of the authorized

shares or price, or 10,500 per transaction, whichever is

higher, plus 100 per day of delay of the filing of the

amendment

7% of the amount of each sale in excess of the authorized shares

or price, or 21,000 per transaction, whichever is higher, plus 200 per day of delay of filing

of the amendment.

10% of the amount of each

sale in excess of the authorized shares or price, or

63,000 per transaction, whichever is higher,

plus 600 per day of delay of the filing of the amendment.

FAILURE TO TIMELY PUBLISH THE NOTICE OF AMENDMENTS

10,500 plus


21,000 plus


63,000 plus


45

7.4. GENERAL REPORTORIAL REQUIREMENTS (FOR ISSUERS OF SECURITIES, MUTUAL FUNDS, EXCHANGE TRADED FUNDS AND PUBLIC COMPANIES)

LEGAL BASIS/

REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 17.1 of SRC; SRC Rule 17.1 (1)(A)(iii) CURRENT REPORT

LATE FILING OF CURRENT REPORT (SEC FORM 17-C)

0.0003% of the maximum aggregate amount of the total issued and outstanding shares or 20,000, whichever is higher

plus 100 per day of delay

0.0006% of the maximum aggregate amount of the total

issued and outstanding shares or 30,000, whichever is higher


0.0008% of the maximum aggregate amount of the

total issued and outstanding shares or 40,000, whichever

is higher plus 400 per day of delay

NON-FILING OF CURRENT REPORT (SEC FORM 17-C)








is higher plus 500 per day of delay

Section 17.1; SRC Rule 17.1 (1)(A)(ii) QUARTERLY REPORT

LATE FILING OF QUARTERLY REPORT (SEC FORM 17-Q)



0.001 of the maximum aggregate amount of the total


plus300 per day of delay



is higher Plus 600 per day of delay

NON-FILING OF QUARTERLY REPORT (SEC FORM 17-Q)


Plus 400 per day of delay





total issued and outstanding shares or 150,000, whichever is higher

Plus 1,000 per day of delay

46

LEGAL BASIS/

REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

INCOMPLETE QUARTERLY REPORT (SEC FORM 17-Q)

10,000 plus 200 per day until a complete report is filed


50,000 plus 600 per day until a complete report is

filed

MATERIAL DEFICIENCY IN

THE INTERIM FS

10,000 per AFS or 5,000 for

each material deficiency,

whichever is higher

20,000 per AFS or 10,000 for


whichever is higher

40,000 per AFS or 20,000 for


whichever is higher

MATERIAL MISSTATEMENT

OR MISREPRESENTATION

IN THE INTERIM FS

10,000 or 1/100 of 1% of the

amount of misstatement,

whichever is higher

20,000 or 1/200 of 1% of the


whichever is higher

30,000 or 1/300 of 1% of the


whichever is higher

OTHER NON-COMPLIANCE

WITH THE REQUIREMENTS

OF SRC RULE 68

10,000 20,000 30,000

Section 17.1; SRC Rule 17.1 (1)(A)(i) ANNUAL REPORT

LATE FILING OF ANNUAL REPORT (SEC FORM 17-A)








plus 1,000 per day of delay

NON-FILING OF ANNUAL REPORT (SEC FORM 17-A)

0.005% of the maximum aggregate amount of the total issued and outstanding shares

or 200,000, whichever is higher Plus 500 per day of delay


issued and outstanding shares or 300,000, whichever is higher Plus 1,000 per day of delay




47

LEGAL BASIS/

REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

INCOMPLETE ANNUAL REPORT (SEC FORM 17-A)



65,000 plus 1,000 per day until a complete report is

filed

Section 68 of SRC; SRC Rule 68 AUDITED FINANCIAL STATEMENTS

MATERIAL DEFICIENCY 10,000 for each material

deficiency

20,000 for each material

deficiency

40,000 for each material

deficiency

MATERIAL MISSTATEMENT

OR MISREPRESENTATION

10,000 or

1/10 of 1% of the amount of

misstatement, whichever is

higher

20,000 or



higher

30,000 or



higher

OTHER NON-COMPLIANCE

WITH THE REQUIREMENTS

OF SRC RULE 68

P10,000 20,000 30,000

Section 20 [in relation with 17.1(b)] SRC Rule 20 INFORMATION STATEMENT

LATE FILING OF INFORMATION STATEMENT (SEC FORM 20-IS)

0.0003% of the maximum aggregate amount of the total issued and outstanding shares or 50,000, whichever is higher,



issued and outstanding shares or 100,000, whichever is higher,



total issued and outstanding shares or 200,000,

whichever is higher plus 1,000 per day of delay

48

LEGAL BASIS/

REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

NON- FILING OF INFORMATION1 STATEMENT (SEC FORM 20-IS)


or P100,000, whichever is higher plus



issued and outstanding shares or 200,000, whichever is higher plus

1,000 per day of delay


total issued and outstanding shares or 400,000,

whichever is higher plus 2,000 per day of delay

INCOMPLETE INFORMATION STATEMENT (SEC FORM 20-IS)

20,000.00 plus 200 per day of delay of filing an amended

statement

40,000.00 plus 500 per day of delay of filing an amended

statement

80,000.00 plus 1,000 per day of delay of filing an amended

statement

FAILURE TO COMPLY WITH ANY OF THE OTHER PROCEDURAL REQUIREMENTS OF SRC RULE 20



100,000 plus 1,000 per day of continuing violation

Section 17.1 of SRC; SRC Rule 17.1 NOTICE OF SUSPENSION TO FILE REPORTS (SEC FORM 17-EX)

LATE FILING OF NOTICE 15,000 plus 100 per day of delay

25,000.00 plus 200 per day of delay

50,000.00 plus 600 per day of delay

Section 54 of SRC

MISREPRESENTATION OR MISLEADING STATEMENTS IN ANY REPORTS REQUIRED TO BE SUBMITTED TO THE COMMISSION


violation

210,000 plus 1,000 per day of continuing

violation


violation

1In instances where the company conducted a meeting.

49

7.5. REPORTORIAL AND OTHER REQUIREMENTS FOR BENEFICIAL OWNERS AND ACQUIRERS OF EQUITY SECURITIES LEGAL BASIS/

REPORT VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 18 of SRC; SRC Rule 18 REPORTS BY 5% OR MORE HOLDERS OF EQUITY SECURITIES (SEC FORM 18-A/18-AS)

LATE FILING OF REPORT

1% of the amount of each purchase or disposition, or

10,000 per transaction whichever is higher plus 100

per day of delay

2% of the amount of each transaction, or 20,000 per

transaction, whichever is higher plus 200 per day of delay

3% of the amount of each transaction, or 30,000 per transaction, whichever is

higher plus 300 per day of delay

NON-FILING OF REPORT



per day of delay





INCOMPLETE REPORT

10,000 plus 100 per day of delay of the submission of

the amended report

20,000 plus 300 per day of delay of the submission of the amended

report


the amended report

Section 23 of SRC; SRC Rule 23 STATEMENT OF BENEFICIAL OWNERSHIP (SEC FORM 23-A/B)

LATE FILING OF STATEMENT


10,000 per transaction whichever is higher plus

P100 per day of delay





NON-FILING OF STATEMENT



per day of delay





50

LEGAL BASIS/ REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

INCOMPLETE STATEMENT


the amended report

20,000 plus 200 per day of delay of the submission of the amended

report


the amended report

Section 23 of SRC; SRC Rule 23 BENEFICIAL OWNERSHIP REPORT OF DIRECTORS AND OFFICERS

LATE FILING OF A REPORT SHOWING QUALIFYING SHARES (NOT MORE THAN 100 SHARES)

10,000 plus 100 per day of delay in the submission of

the report

20,000 plus 200 per day of delay in the submission of the report


the report

LATE FILING OF A REPORT SHOWING MORE THAN 100 SHARES BUT LESS THAN 5% OF THE OUTSTANDING EQUITY SECURITIES


the report



the report

LATE FILING OF A REPORT SHOWING MORE THAN 5% BUT LESS THAN 10%


the report



the report

Section 19.1 of SRC; SRC Rule 19.1 TENDER OFFER REQUIREMENTS

LATE FILING OF TENDER OFFER REPORT (SEC FORM 19-1)


of filing the report


of filing the report


of filing a the report

NON-FILING OF TENDER OFFER REPORT (SEC FORM 19-1)

100,000 plus 500 per day of delay of filing the report

200,000 plus 1,000 per day of delay of filing the report

400,000 plus 2,000 per day of delay of filing a the

report

51

LEGAL BASIS/ REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

INCOMPLETE TENDER OFFER REPORT (SEC FORM 19-1)

31,500 plus 500 per day of delay of filing the amended

report

63,000 plus 1,000 per day of delay of filing the amended report

130,000 plus 2,000 per day of delay of filing the

amended report

FAILURE TO CONDUCT A TENDER OFFER

105,000 or 0.01% of the aggregate amount of the tender offer, whichever is higher, plus 500 per day of

continuing violation

210,000 or 0.02% of the aggregate amount of the tender offer,

whichever is higher, plus 1,000 per day of continuing violation

315,000 or 0.06% of the aggregate amount of the tender offer, whichever is higher, plus 2,000 per day

of continuing violation

FAILURE TO COMPLY WITH ANY OTHER REQUIREMENTS OF SRC RULE 19-1 AND RELATED GUIDELINES




Section 54 of the Securities

Regulation Code

MISREPRESENTATION OR

MISLEADING STATEMENTS

IN ANY FILINGS REQUIRED

TO BE SUBMITTED TO THE

COMMISSION

105,000 plus

500 per day of continuing

violation

210,000 plus

1,000 per day of continuing

violation

420,000 plus

2,000 per day of continuing

violation

7.6. OTHER REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC AND PUBLIC COMPANIES LEGAL BASIS/


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 38 of SRC; SRC Rule 38 ELECTION OF INDEPENDENT DIRECTORS

FAILURE TO ELECT INDEPENDENT DIRECTOR(S) OR ELECTION OF AN UNQUALIFIED INDEPENDENT DIRECTORS

50,000 plus

200 per day of continuing violation

100,000 plus

500 per day of continuing violation

150,000 plus

1,000 per day of continuing violation

52



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)


FAILURE TO ENGAGE THE SERVICES OF AN EXTERNAL AUDITOR WITHOUT A GROUP A ACREDITATION

100,000

200,000

400,000

Revised Rules Governing Offers of Pre-emptive Rights and Declaration of Stock Cash or Property Dividends of Corporations whose Securities are Registered under the Revised Securities Act; SEC Memorandum Circular No. 2, Series of 2009 DIVIDEND DECLARATIONS

FAILURE TO OBSERVE THE PRESCRIBED PERIODS UNDER THE RULES AND CIRCULAR

50,000 plus 200 per day of

Violation


Violation

150,000 plus 1,000 per day of

Violation

7.7. ADDITIONAL REQUIREMENTS FOR MUTUAL FUNDS AND EXCHANGE TRADED FUNDS LEGAL BASIS


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 8 of ICA ELECTION OF CERTAIN INELIGIBLE AFFILIATED PERSONS AND UNDERWRITERS







Section 9 of ICA UNAUTHORIZED AFFILIATIONS OF DIRECTORS, OFFICERS AND EMPLOYEES







53

LEGAL BASIS


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 10 of ICA PROHIBITED OFFER TO EXCHANGE SECURITIES







Section 11 of ICA UNAUTHORIZED OR ILLEGAL ACTIVITIES OF INVESTMENT COMPANIES (Per illegal activity /violation)







Section 12 of ICA UNAUTHORIZED CHANGES IN INVESTMENT POLICY







Section 14 of ICA UNAUTHORIZED CONTRACTS OF ADVISERS AND UNDERWRITERS







Sections 22 & 23 of ICA; ICA Rule 35-1 (e)

VIOLATION OF REQUIREMENTS ON DISTRIBUTION, REDEMPTION, AND REPURCHASE OF SECURITIES







Section 26 of ICA EXCESSIVE PERIODIC PAYMENT PLAN







Sections 25, 27 and 30 of ICA; ICA Rule 35-1(e)(3);

FAILURE TO SUBMIT REQUIRED REPORTS AND/OR TO PUBLISH DAILY PRICES







54

LEGAL BASIS


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 32 of ICA MISREPRESENTATION IN ANY REPORT







ICA Rule 35-1(d); Section 7.5 of ETF Rules

VIOLATION OF RECITED INVESTMENT OBJECTIVES AND RESTRICTIONS







ICA Rule 35-1(c)(2); ETF Rules Section 17.1

NON-DEPOSIT OF SALES PROCEEDS TO A CUSTODIAN BANK







ICA Rule 35-1(c)(3) REDEMPTION OF ORIGINAL CAPITAL FOR LESS THAN 12 MONTHS

10,000 per redemption

20,000 per redemption 30,000 per redemption

ICA Rule 35-1(i)(2); Section 27.1(a) of ETF Rules

LATE FILING OF MONTHLY SALES/REDEMPTION REPORT







ICA Rule 35-1(i)(2); ETF Rules Section 27.1(a)

NON-FILING OF MONTHLY SALES/REDEMPTION REPORT





60,000.00 plus 600 per day of


ICA Rule 35-1(e)(3);

ETF Rules Section 26

FAILURE TO EFFECT REDEMPTION REQUEST WITHIN 7 BANKING DAYS

10,000 per redemption

20,000 per redemption 30,000 per redemption

Section 35 of ICA; ICA Rule 35-1(g)(1)

FAILURE TO REGISTER AS AN INVESTMENT COMPANY ADVISER

50,000

75,000 100,000

55

7.8. ADDITIONAL REQUIREMENTS FOR EXCHANGE TRADED FUNDS ONLY LEGAL BASIS


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Sections 8(4) and (5) of ETF Rules FAILURE TO PUBLISH/ UPLOAD DAILY PRICES/NAV/INAV







Section 23 of ETF Rules FAILURE TO PUBLISH/UPLOAD ON A DAILY BASIS THE INFORMATION ON THE INDEX AND PROTFOLIO HOLDINGS

P10,000 plus 100 per day of


P20,000 plus P200 per day of


P30,000 plus P400 per day of


(8) INVESTMENT COMPANY ADVISERS/MUTUAL FUND DISTRIBUTORS

Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT




ICA Rule 35-1 (g) (1) FAILURE TO REGISTER AS AN INVESTMENT COMPANY ADVISER

50,000

75,000 100,000

Section 28.1, SRC FAILURE TO REGISTER AS A MUTUAL FUND DISTRIBUTOR

50,000

75,000 100,000

56

Section 40 of the Investment Company Act

FAILURE TO REGISTER AGENTS & INVESTMENT SOLICITORS COMPANY INDIVIDUAL

10,000

5,000

15,000

10,000

20,000

15,000


LEGAL BASIS/ SUJBECT REPORT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

GENERAL INFORMATION SHEET (GIS)

LATE OR NON-FILING OTHER VIOLATIONS RELATING TO THE GIS

See applicable violations for stock corporations



ANNUAL AUDITED FINANCIAL STATEMENTS (AFFS)

LATE OR NON-FILING OF ANNUAL AUDITED FINANCIAL STATEMENT (AAFS) OTHER VIOLATIONS RELATING TO THE AAFS

10,000 plus 100/day of delay



SRC Rule 28.1-1.E.2.xiii – SEC FORM ICA-IA (CHANGE IN INFORMATION)

FAILURE TO NOTIFY ANY CHANGE IN INFORMATION WITHIN SEVEN (7) DAYS FROM THE DATE OF THE OCCURRENCE OF THE EVENT

10,000 basic penalty Plus 100/day of delay



57



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 28.1-4.C SEC FORM ICA-T

FAILURE TO NOTIFY THE COMMISSION WITHIN THIRTY(30) DAYS AFTER THE DISCONTINUATION OF EMPLOYMENT




SEC FORM ICA-CIS FAILURE TO REPORT ANY

CHANGE IN

INFORMATION IN SEC

FORM ICA –CIS

10,000 Plus 100/day of delay

30,000 Plus 200/day of delay 50,000 Plus 300/day of delay

SEC FORM ICA-CO/AP FAILURE TO REPORT ANY CHANGE IN INFORMATION IN SEC FORM ICA –CO


30,000 Plus 200/day of delay 50,000 Plus 300/day of delay

SEC FORM MFD FAILURE TO REPORT ANY CHANGE IN SEC FORM MFD




8.3. OTHER REQUIREMENTS



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

ICA Rule 35-1 (g) (1)-A FAILURE TO MAINTAIN THE MINIMUM UNIMPAIRED NET WORTH

5,000 plus 100/day of violation



58

(9) BROKER DEALER OF SECURITIES , SALESMEN OR ASSOCIATED PERSONS OF BROKER OR DEALER; OTC PARTICIPANTS Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT




Section 28.1

ENGAGING IN THE BUSINESS OF BUYING AND SELLING SECURITIES WITHOUT BEING REGISTERED AS BROKERS. DEALERS OF : EQUITY SECURITIES PROPRIETARY SHARES OTHER SECURITIES

100,000

50,000

50,000

150,000

75,000

75,000

200,000

100,000

100,000

SRC Rule 28.1-1 (E) (vi) FAILURE TO REGISTER AS BRANCH OFFICE

10,000 plus 100/day of operation without registration

25,000 plus 100/day of operation without

registration


SRC Rule 28.1-4 ACTING AS A SALESMAN OR AN ASSOCIATED PERSON OF ANY BROKER DEALER WITHOUT REGISTRATION: SALESMAN A. COMPANY B. INDIVIDUAL

10,000 5,000

15,000 10,000

20,000 15,000

59

LEGAL BASIS VIOLATION FIRST OFFENSE (Amounts in Pesos)



ASSOCIATED PERSON A. COMPANY B. INDIVIDUAL

15,000 10,000

30,000 15,000

30,000 20,000





SRC Rule 52.1-5 ANNUAL AUDITED FINANCIAL STATEMENT (AAFS) SEC Form 52 – AR

LATE OR NON-FILING AAFS





MATERIAL DEFICIENCY

10,000 per AFS or P1,000 per material deficiency,


20,000 per AFS or 2,000 per material deficiency, whichever is higher1




whichever is higher


whichever is higher


whichever is higher


10,000 20,000 30,000


LATE-FILING




60





NON-FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day


1,000 2,000 4,000

SRC Rule 49.1-1 SEC Memorandum Circular No. 16 series of 2004

LATE FILING OF RBCA REPORT INCLUDING DECLARATION SHEET, SUPPORTING DOCUMENTS AND NOT USING THE REQUIRED FORMAT.

10,000 Plus 100/day of delay [Note: Alternative proposal, failure to file the RBCA: within 7 days – P25k within 14 days – P50k plus suspension]



SRC Rule 49.1-1

FAILURE TO SUBMIT RBCA REPORT INCLUDING DECLARATION SHEET, SUPPORTING DOCUMENTS AND NOT USING THE REQUIRED FORMAT.

25,000

50,000 100,000

SRC Rule 28.1-1 (E) (xiii) SEC Form 28-BDA

FAILURE TO REPORT AMENDMENT




SRC Rule 28.1-4 (C) SEC Form 28-T

FAILURE TO NOTIFY DISCONTINUATION OF EMPLOYMENT OF SALESMAN, ASSOCIATED PERSON




61





SRC Rule 30.2-6 QUARTERLY COMPLIANCE REPORT SEC Form BD – 30.2 QCR

FAILURE TO TIMELY FILE THE REPORT

10,000 Plus 100/day



SRC Rule 30.1 SEC Form 30.1

VIOLATION OF RULES ON AFFILIATED TRANSACTIONS

5,000 10,000 25,000

SRC Rule 28.1-4 (H) SEC Form 28-AMD

FAILURE TO REPORT ANY CHANGE IN INFORMATION IN SEC FORM 28-S AND SEC FORM 28-AP




Rules Governing the Trading of PSE Shares

LATE OR NON-FILING OF REPORT ON TRANSACTIONS/TRADING OF PSE SHARES

50,000 75,000 100,000




computed


Computed

62








computed


Computed


LATE-FILING


n/a

n/a

NON-FILING


n/a

n/a


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA

63





REVISED CODE OF CORPORATE GOVERNANCE CERTIFICATIONS ON CORPORATE GOVERNANCE (I.E. CERTIFICATION BY THE CORPORATE SECRETARY ON THE ATTENDANCE OF DIRECTORS AND CERTIFICATION BY THE COMPLIANCE OFFICERS ON THE EXTENT OF COMPLIANCE WITH THE MANUAL OF CORPORATE GOVERNANCE)

FAILURE TO SUBMIT ANY OF THE REQUIRED CERTIFICATIONS (NB: Covered companies per SEC Memo Circular No. 5, S. 2013 are not required to submit these Certifications in view of the implementation of the ACGR)




violation

ANY MISREPRESENTATION IN THE SUBMITTED MANUAL ON CORPORATE GOVERNANCE


violation

50,000.00 plus 500 per day of continuing

violation


violation

ANY VIOLATION OF THE REVISED CODE OF CORPORATE GOVERNANCE (RCCG)


violation

50,000.00 plus 1,000 per day of continuing

violation


violation

LATE FILING OF THE ANNUAL CORPORATE GOVERNANCE REPORT


violation


violation

Suspension or Revocation

NON-FILING OF THE ANNUAL CORPORATE GOVERNANCE REPORT


violation


violation

Suspension or Revocation

64





MISREPRESENTATION/ OMISSION OF INFORMATION IN THE ANNUAL CORPORATE GOVERNANCE REPORT


violation


violation


violation


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA



10,000

20,000

Suspension of CA





SRC Rule 24.1 (b)-1 VIOLATION OF MANIPULATIVE PRACTICES RULE

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000 BD – 200,000 AP/S – 100,000

SRC Rule 24.1 (d)-1 VIOLATION OF ADVERTISEMENTS AND COMMUNICATIONS WITH PUBLIC RULE

BD – 50,000 AP/S – 25,000

BD – 100,000 AP/S – 50,000 BD – 150,000 AP/S – 75,000

65





SRC Rule 24.1 (d)-2 VIOLATION OF PUBLICATION OF TRANSACTIONS AND QUOTATIONS RULE

BD – 50,000 AP/S – 25,000

BD – 100,000 AP/S – 50,000 BD – 150,000 AP/S – 75,000

SRC Rule 24.1 (d)-3 VIOLATION OF PAYMENT TO INFLUENCE MARKET PRICES RULE

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000 BD – 200,000 AP/S – 100,000

SRC Rule 24.2-2 VIOLATION OF SHORT SALES RULE

BD – 50,000 AP/S – 25,000

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000

SRC Rule 24.2-3 VIOLATION OF PROHIBITION ON GUARANTEES AGAINST LOSS RULE

BD – 50,000 AP/S – 25,000

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000

SRC Section 25 VIOLATION OF REGULATION OF OPTION TRADING RULE

50,000 75,000

100,000

SRC Section 26 VIOLATION OF FRAUDULENT TRANSACTIONS RULE

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000

BD – 200,000 AP/S – 100,000

SRC Rule 26.3-1 VIOLATION OF THE USE OF INFORMATION OBTAINED IN FIDUCIARY CAPACITY RULE

25,000

50,000

100,000

66





SRC Rule 26.3-2 (b) VIOLATION OF PROHIBITED REPRESENTATIONS RULE

100,000

150,000 200,000

SRC Section 27 VIOLATION OF INSIDER TRADING RULE

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000

BD – 200,000 AP/S – 100,000

SRC Rule 28.1-1 (E) (viii) FAILURE TO MAINTAIN REGISTERED AP

10,000 plus 100/day of operation without

registration



SRC 28.1-1(E)(xi) FAILURE TO MAINTAIN SEPARATE BANK ACCOUNT FOR CLIENT FUND




SRC Rule 30.2-1 VIOLATION OF THE ETHICAL STANDARDS RULE

25,000 50,000 100,000

SRC Rule 30.2-2 VIOLATION OF CUSTOMER ORDERS RULE

10,000 30,000 50,000

SRC Rule 30.2-3 VIOLATION OF CLIENT AGREEMENT RULE VIOLATION OF CLIENT AGREEMENT WITH DISCRETIONARY ACCOUNT RULE

10,000

25,000

30,000

50,000

50,000

100,000

67





SRC Rule 30.2-4 VIOLATION OF SUITABILITY RULE TRADING VIOLATION OF CHURNING/ EXCESSIVE TRADING

25,000

25,000

50,000

50,000

100,000

100,000

SRC Rule 30.2-5 VIOLATION OF RULES ON COMMISSIONS & CHARGES FOR SERVICES OF BROKER DEALER

10,000

30,000

50,000

SRC Rule 30.2-6 FAILURE TO ESTABLISH/ MAINTAIN EFFECTIVE AND APPROPRIATE COMPLIANCE FUNCTIONS FAILURE TO INFORM THE COMMISSION OF OCCURRENCES OF MATERIAL NON- COMPLIANCE WITH LEGAL REQUIREMENTS , FIRMS OWN POLICIES AND PROCEDURES FAILURE TO REPORT TO MANAGEMENT ALL OCCURRENCES OF MATERIAL NON-COMPLIANCE BY THE FIRM OR ITS STAFF WITH LEGAL AND REGULATORY REQUIREMENTS

15,000

25,000

10,000

10,000

25,000

50,000

30,000

30,000

50,000

100,000

50,000

50,000

68





FAILURE TO COMPLY WITH RULE ON MAINTENANCE OF A LOGBOOK

SRC Rule 30.2-7 FAILURE TO ESTABLISH, IMPLEMENT TRAINING PROGRAM

10,000

30,000

50,000

SEC Rule 32.1 PROHIBITION ON TRADING OF UNREGISTERED SECURITIES OR IN UNREGISTERED EXCHANGE/MARKET

BD – 100,000 AP/S – 50,000

BD – 150,000 AP/S – 75,000

BD – 200,000 AP/S – 100,000

SRC Rule 32.2 (a) VIOLATION OF BEST EXECUTION RULE

BD – 50,000 AP/S – 25,000

BD – 75,000 AP/S – 50,000

BD – 100,000 AP/S – 75,000

SRC Rule 34.1-1 VIOLATION OF CUSTOMER FIRST POLICY

25,000 50,000 100,000

SRC Rule 34.1-2 VIOLATION OF CHINESE WALLS POLICY

25,000 50,000 100,000

SRC Rule 48.1 VIOLATION OF MARGIN REQUIREMENT RULE

10,000

30,000

50,000

69





SRC Rule 49.1-1; SEC MC # 16 S 2004

VIOLATION OF NET CAPITAL RULE AND THE RBCA RULES BELOW MINIMUM NET LIQUID CAPITAL OF P5M OR P2.5M OR 5% OF AGGREGATE INDEBTEDNESS WHICHEVER IS HIGHER; IN THE CASE OF BROKER DEALERS R PROPRIETARY SHARES, BELOW MINIMUM NET LIQUID CAPITAL OF P 2.5M or 2.5% OF AGGREGATE INDEBTEDNESS WHICHEVER IS HIGHER IF RBCA RATIO IS BELOW 1.1

Suspension of Operations






IF AGGREGATE INDEBTEDNESS IN EXCESS OF 1700% OF ITS NLC OR RBCA RATIO IS LESS THAN 1.2, FAILURE TO NOTIFY THE COMMISSION ON THE DAILY BASIS OF ITS NLC POSITION




70





FAILURE TO CEASE OPERATION IF (1) MINIMUM RBCA RATIO OF 1.1; OR (2) THE MINIMUM NLC IS BREACHED FAILURE TO COMPUTE NET RBCA MARGIN AND RBCA RATIO ON A DAILY BASIS FAILURE TO SUBMIT REPORTS WHICH REFLECT RBCA RATIO AND RBCA MARGIN UPON REQUEST AGGREGATE INDEBTEDNESS IN EXCESS OF 1700% OF ITS NLC CORE EQUITY GREATER THAN OPERATIONAL RISK REQUIREMENT IS BERACHED NON-COMPLIANCE WITH THE MINIMUM UNIMPAIRED PAID-UP CAPITAL NON-SUBMISSION OF CAPITAL BUILD-UP PLAN

50,000 plus 10,000/day of violation





















71





AND/OR FAILURE TO EFFECT PROPOSAL (MEASURES TO BE TAKEN) WITHIN 10 DAYS ERRONEOUS COMPUTATION OF RBCA REQUEST NOT USING THE REQUIRED FORMAT

10,000

10,000

30,000

30,000

50,000

50,000

SRC Rule 49.1-1(H) VIOLATION OF LIMITATION ON WITHDRAWAL OF EQUITY CAPITAL

10,000 30,000 50,000

SRC Rule 49.2 VIOLATION OF CUSTOMER PROTECTION RESERVES & CUSTODY OF SECURITIES RULE

10,000

30,000 50,000

SRC Rule 49.2-4 VIOLATION OF SPECIAL RESERVE BANK ACCOUNT RULE

10,000

30,000 50,000

SRC Rule 49.3 VIOLATION OF LENDING AND VOTING CUSTOMERS SECURITIES RULE

10,000

30,000 50,000

72





SRC Rule 50 VIOLATION OF PURCHASES AND SALES ACCOUNT RULE

10,000

30,000 50,000

SRC Rule 52.1-1 VIOLATION OF BOOKS AND RECORDS RULE NOT CURRENT NOT AVAILABLE

10,000 Plus 200/day of violation

Immediate Suspension



SRC Rule 52.1-2 VIOLATION OF RECORDS AND RETENTION RULE PRESERVATION FOR 5 YRS ACCESSIBLE FOR 2 YRS CEASED OPERATION

10,000 10,000

10,000

30,000 30,000

30,000

50,000 50,000

50,000

SRC Rule 52.1-4 REPORT OF EXCHANGE MEMBERS, BROKERS, DEALERS TRADING THROUGH MEMBERS

10,000

30,000 50,000

SRC Rule 52.1-6 VIOLATION OF CUSTOMER ACCOUNT INFORMATION RULE

10,000

30,000 50,000

SRC Rule 52.1-7 VIOLATION OF ORDER TICKET RULE

10,000

30,000 50,000

73





SRC Rule 52.1-8 VIOLATION OF RULE ON CUSTOMER ACCOUNT STATEMENTS FAILURE TO SEND CUSTOMER ACCOUNT STATEMENT MONTHLY

10,000

10,000

30,000

30,000

50,000

50,000

SRC Rule 52.1-9 VIOLATION OF CUSTOMER COMPLAINT RULE FAILURE TO PRESERVE SEPARATE FILE OF COMPLAINTS RECEIVED AND ACTION TAKEN

10,000

10,000

30,000

30,000

50,000

50,000

SRC Rule 52.1-10 VIOLATION OF THE MONTHLY SECURITIES COUNT BY BROKER, DEALER RULE

10,000

30,000 50,000


FAILURE TO ENGAGE THE SERVICES OF AN EXTERNAL AUDITOR WITHOUT A GROUP B ACREDITATION

50,000

100,000

200,000




of this Scale)


of this Scale)


of this Scale)

74

9.4. ADDITIONAL REQUIREMENTS FOR OTC PARTICIPANTS (SEC MEMORANDUM CIRCULAR NO. 14, SERIES OF 2006 OR OTC RULES)

LEGAL BASIS/ SUBJECT MATTER


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 3 of the

OTC Rules

MAKING, CREATING OR

OPERATING AN OTC MARKET

PROHIBITION FROM

MAKING, CREATING OR

OPERATING AN OTC

MARKET NOT IN

ACCORDANCE WITH THE

RULES.

BD – minimum of 100,000

S/AP – minimum of 50,000

OP – minimum of 10,000







Section 4 of the OTC Rules

REGISTRATION OF BROKER,

DEALER, SALESMAN AND

ASSOCIATED PERSON OF

BROKER OR DEALER IN AN OTC

MARKET

ACTING AS A BROKER, DEALER,

SALESMAN OR AN ASSOCIATED

PERSON OF BROKER OR DEALER

WITHOUT BEING REGISTERED

AS SUCH PURSUANT SECTION

28 OF THE SRC

MAKING, CREATING OR

OPERATING AN OTC

MARKET WITHOUT BEING

REGISTERED AS BROKER,

DEALER OR SALESMAN OF

BROKER OR DEALER IN

AN OTC MARKET.

ENABLING ANOTHER

PERSON TO MAKE,

CREATE OR OPERATE AN

OTC MARKET WHERE

SAID PERSON IS NOT

AUTHORIZED TO ACT AS

BROKER, DEALER OR






OP – min

mum of 25,000




75



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SALESMAN IN AN OTC

MARKET.

BROKER’S OR DEALER’S

FAILURE TO CAUSE THE

REGISTRATION OF A

PERSON OR THE

AMENDMENT OF

REGISTRATION OF A

SALESMAN OR

ASSOCIATED PERSON

BEFORE ALLOWING SUCH

PERSON TO ACT AS

SALESMAN OR

ASSOCIATED PERSON OF

A BROKER OR DEALER IN

AN OTC MARKET.

Section 5 of the OTC Rules REGISTRATION OF A

GROUP OF PERSONS TO

OPERATE AN OTC

ACTING IN CONCERT IN

MAKING, CREATING OR

OPERATING AN OTC

MARKET WITHOUT

FORMING AND CAUSING

THE REGISTRATION OF AN

ASSOCIATION OF










76



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

BROKERS AND/OR

DEALERS PURSUANT TO

SECTION 39 OF THE SRC

Section 6 of the OTC Rules MEMBERSHIP IN AN SRO

VIOLATIONS AGAINST

THE REQUIREMENT THAT

NO BROKER OR DEALER

SHALL PARTICIPATE IN AN

OTC MARKET UNLESS HE

IS A MEMBER OF AN SRO










Section 7 of the OTC Rules ELIGIBLE INVESTORS IN

AN OTC MARKET

VIOLATION AGAINST THE

REQUIREMENT THAT A

NON-QUALIFIED

INVESTOR SHALL NOT

PARTICIPATE IN AN OTC

MARKET










SRC Rule 32.1 PROHIBITION ON

TRADING OF

UNREGISTERED

SECURITIES OR IN

UNREGISTERED

EXCHANGE/MARKET

B/D - P100,000

AP/SP – P50,000

B/D - P150,000

AP/SP – P75,000

B/D - P200,000

AP/SP – P100,000

77



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 8 of the OTC Rules ELIGIBLE SECURITIES IN AN OTC MARKET VIOLATION AGAINST THE RULES ON ELIGIBLE SECURITIES IN AN OTC

BD – minimum of 100,000 S/AP – minimum of 50,000 OP – minimum of 10,000


BD – minimum of 250,000 S/AP – minimum of 100,000


Section 10 of the OTC Rules SUBMISSION OF INFORMATION RELATIVE TO THE QUOTATION SYSTEM VIOLATION OF THE REQUIREMENTS FOR SUBMISSION OF INFORMATION RELATIVE TO THE QUOTATION SYSTEM





Sections 11, 12, 13 of the OTC Rules

OPERATION OF A QUOTATION SYSTEM VIOLATIONS IN THE OPERATION OF A QUOTATION SYSTEM BY A DEALER, BROKER, OR BY A GROUP OF BROKERS AND/OR DEALERS





78



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 14 of the OTC Rules INTEGRATION OF THE QUOTATION SYSTEMS FAILURE TO COMPLY WITH ORDER FOR ELECTRONIC INTEGRATION FAILURE TO COMPLY WITH ORDER TO PROVIDE THE COMMISSION WITH ACCESS AND LINKAGE





Section 15 of the OTC Rules REQUIRED INFORMATION BEFORE INITIATION OR RESUMPTION OF QUOTATIONS FAILURE TO MAINTAIN REQUIRED INFORMATION BEFORE INITIATION OR RESUMPTION OF QUOTATIONS.





Section 16 of the OTC Rules TRADE REPORTING OBLIGATIONS FAILURE TO COMPLY WITH TRADE REPORTING OBLIGATIONS AS PRESCRIBED BY THE RULES.





79



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 17 of the OTC Rules APPROVAL OF A CENTRAL TRADE REPORTING SYSTEM OPERATING OR PROVIDING A CENTRAL TRADE REPORTING SYSTEM WITHOUT THE PRIOR APPROVAL OF THE COMMISSION.





Section 18 of the OTC Rules CAPITAL ADEQUACY REQUIREMENTS AND REPORTS FAILURE TO MEET CAPITAL ADEQUACY REQUIREMENTS AND TO SUBMIT REPORTS.

In case of breach by a bank, the Commission shall impose the corresponding sanctions being enforced on broker or dealer as if the violation is a breach of SRC Rules on RBCA In case of breach by a qualified investor, the Commission may declare the entity as being unfit to continue participating as a qualified investor in the OTC market.

Section 19 of the OTC Rules COMMISSIONS, CHARGES AND FEES VIOLATIONS IN CHARGING COMMISSIONS AND FEES IN OTC TRANSACTIONS.





80



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 20 of the OTC Rules CLEARING AND SETTLEMENT VIOLATIONS IN CLEARING AND SETTLEMENT OF OTC TRANSACTIONS.





Section 22 of the OTC Rules UNLAWFUL ACTS

ENGAGING IN UNLAWFUL ACTS AS ENUMERATED IN THE OTC RULES.





Section 23 of the OTC Rules OTHER PROHIBITED ACTS ENGAGING IN OTHER PROHIBITED ACTS AS ENUMERATED IN THE OTC RULES





Section 26 of the OTC Rules DISPUTE RESOLUTION

FAILURE TO COMPLY WITH THE REQUIREMENT THAT PARTICIPANTS IN THE OTC MARKET AND OTHER PERSONS INVOLVED THEREIN SHALL INCORPORATE IN THEIR CLIENT AGREEMENT, PARTICIPATION AGREEMENT OR ANY OTHER SUITABLE AGREEMENT PROVISIONS FOR PROMPT RESOLUTION OF ANY DISPUTE THAT MAY ARISE FROM THE IMPLEMENTATION OF SAID AGREEMENT





81

(10) INVESTMENT HOUSES/UNDERWRITER OF SECURITIES Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT




Section 3.E of the Omnibus Rules

VIOLATION OF THE RULE ON USE OF THE TERM “INVESTMENT” ADVERTISING OR HOLDING ITSELF OUT AS BEING ENGAGED IN THE BUSINESS OF AN IH/UNDERWRITER OF SECURITIES WITHOUT A LICENSE

Fine not exceeding 200.00 per day for every day during which such violation or non-

compliance continues (Section 16 of the IH Law)





Section 3.F of the Omnibus Rules

FAILURE TO SECURE A LICENSE TO OPERATE A BRANCH







82

Section 4 of the Omnibus Rules

VIOLATION OF THE RULE ON UNDERWRITING REQUIREMENTS FAILURE TO SECURE APPROVAL OF UNDERWRITING AGREEMENT NON-SUBMISSION OF DULY NOTARIZED AND EXECUTED COPY OF UA












MATERIAL DEFICIENCY






whichever is higher


whichever is higher


whichever is higher


10,000 20,000 30,000

Section 14.B of the Omnibus Rules; Section 16 of the Investment Houses Law

LATE OR NON-FILING OF SEC FORM IH-14 AR (ANNUAL REPORT)


compliance continues





83





SEC Form IH-14 AR FAILURE TO USE FORM PRESCRIBED BY THE COMMISSION OTHER VIOLATIONS RELATING TO SEC FORM IH-14 AR

Section 14.A of the Omnibus Rules and Regulations for Investment Houses and Universal Banks Registered as Underwriters of Securities (Omnibus Rules); Section 16 of the Investment Houses Law SEC Form IH-14

LATE OR NON-FILING OF SEC FORM IH-14 (QPR-QUARTERLY PROGRESS REPORTS WITH ATTACHED QUARTERLY FINANCIAL STATEMENTS) FAILURE TO USE FORM PRESCRIBED BY THE COMMISSION OTHER VIOLATIONS RELATING TO SEC FORM IH-14 OTHER VIOLATIONS RELATING TO THE QUARTERLY FINANCIAL STATEMENTS







Section 14.E of the Omnibus Rules; Section 16 of the Investment Houses Law

LATE OR NON-FILING OF SEC FORM IHU-A FAILURE TO USE FORM PRESCRIBED BY THE COMMISSION







84





SEC Form IHU-A OTHER VIOLATIONS RELATING TO SEC FORM IHU-A

SRC Rule 49.1-1 SEC Memorandum Circular No. 16 series of 2004

LATE FILING OF RBCA REPORT INCLUDING DECLARATION SHEET, SUPPORTING DOCUMENTS AND NOT USING THE REQUIRED FORMAT.




SRC Rule 49.1-1

FAILURE TO SUBMIT RBCA REPORT INCLUDING DECLARATION SHEET, SUPPORTING DOCUMENTS AND NOT USING THE REQUIRED FORMAT

25,000

50,000 100,000

SRC Rule 28.1-4 (C) SEC Form 28-T

FAILURE TO NOTIFY DISCONTINUATION OF EMPLOYMENT OF SALESMAN, ASSOCIATED PERSON




SRC Rule 30.2-6 SEC Form BD – 30.2 QCR

FAILURE TO FILE QUARTERLY COMPLIANCE REPORT

10,000 Plus 100/day



85





SRC Rule 28.1-4 (H) SEC Form 28-AMD

FAILURE TO REPORT ANY CHANGE IN INFORMATION IN SEC FORM 28-S AND SEC FORM 28-AP





LATE-FILING


NON-FILING



1,000 2,000 4,000




computed


Computed




computed


Computed

86






LATE-FILING


n/a

n/a

NON-FILING


n/a

n/a


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA

87







10,000

20,000

Suspension of CA





Section 3.A.vi of the Omnibus Rules; Section 16 of the Investment Houses Law

VIOLATION OF INTERLOCKING DIRECTORS AND OFFICERS







Section 5 of the Omnibus Rules; Section 16 of the Investment Houses Law RULE ON DUE DILIGENCE

FAILURE TO EXERCISE DUE DILIGENCE INVESTIGATIONS OF ALL MATTERS RELATING TO THE ISSUER AND THE ISSUE







Section 8 of the Omnibus Rules; Section 16 of the Investment Houses Law RULE ON INITIAL PUBLIC OFFERING DISTRIBUTION PROCESS

FAILURE TO COMPLY WITH THE DISTRIBUTION REQUIREMENTS







88





Section 9 of the Omnibus Rules; Section 16 of the Investment Houses Law RULE ON MANAGEMENT OF FUNDS

FAILURE TO ENSURE THAT THE INTEREST OF THE FUNDS MANAGED IS PROMOTED AND THAT THE OPERATION OF THE FUNDS IS UNDERTAKEN ON AN ARM’S LENGTH BASIS







Section 10 of the Omnibus Rules RULE ON UNDERWRITING FEES

COLLECTION OF UNDERWRITING FEES IN EXCESS OF 5% OF THE AMOUNT GENERATED BY THE UNDERWRITER FOR THE ISSUER







Section 11. A of the Omnibus Rules; Section 16 of the Investment Houses Law RULE ON UNDERWRITING COMMITMENT

UNDERWRITING COMMITMENT UNDERTAKEN IN AN AMOUNT EXCEEDING TWENTY (20) TIMES ITS NETWORTH







Section 11. B of the Omnibus Rules

VIOLATION OF THE RULE ON THE MINIMUM CAPITALIZATION AND/OR UNIMPAIRED CAPITAL AND SURPLUS

Any or all of the following sanctions may be imposed by the Commission on any Investment House which fails to comply with the capital requirement or having complied, shall fail to maintain thereafter such capital requirement, to wit:



89





i. Cease and desist order; ii. Prohibition from

underwriting; iii. Prohibition from

extending new loans or making new investments;

iv. Suspension of the privilege to establish and/or open approved branches, agencies or offices; and/or

v. Other sanctions prescribed under existing pertinent laws, rules and regulations











Section 11.C of the Omnibus Rules; Section 16 of the Investment Houses Law

NON-COMPLIANCE WITH THE REQUIREMENT THAT WHENEVER AN IH IS ENGAGED IN THE MANAGEMENT OF FUNDS, ITS OFFICER/S AND OTHER PERSONNEL DIRECTLY INVOLVED IN THE MANAGEMENT OF FUNDS ARE PROHIBITED FROM SIMULTANEOUSLY OR CONCURRENTLY BUYING OR SELLING THE SHARES OF STOCK OF THE SAME FIRM THAT THE FUNDS ARE BUYING AND SELLING







90





Section 11.E of the Omnibus Rules; Section 16 of the Investment Houses Law

NON-COMPLIANCE WITH THE REQUIREMENT THAT THERE SHALL BE NO ADVANCES TO DIRECTORS, OFFICERS AND STOCKHOLDERS OWNING AT LEAST 10% OF THE OUTSTANDING CAPITAL OF AN IH SHALL BE ALLOWED , UNLESS SUFFICIENTLY COLLATERALIZED, AS REQUIRED BY BSP







Section 12 of the Omnibus Rules; Section 16 of the Investment Houses Law FEE-BASED INCOME REQUIREMENT

FAILURE TO DERIVE AT LEAST 25% OF ITS ANNUAL GROSS INCOME FROM UNDERWRITING & OTHER FEE-BASED ACTIVITIES.







Section 13 of the Omnibus Rules; Section 16 of the Investment Houses Law CAPITAL ADEQUACY REQUIREMENTS

FAILURE TO COMPLY WITH CAPITAL ADEQUACY REQUIREMENTS • SINGLE BORROWER’S LIMIT (SBL) • NETWORTH TO RISK-ASSETS RATIO







91





Section 15 of the Omnibus Rules; Section 16 of the Investment Houses Law BOOKS AND RECORDS RULE

FAILURE TO MAINTAIN AND PRESERVE RECORDS OF ALL TRANSACTIONS AND OTHER DOCUMENTS FOR FIVE (5) YEARS FROM THE DATES OF THE TRANSACTIONS FAILURE TO PRESERVE AND STORE RECORDS OF ALL TRANSACTIONS AND OTHER DOCUMENTS FOR FIVE (5) YEARS FROM THE DATES WHEN THEY WERE CLOSED







Section 17 of the Omnibus Rules; Section 16 of the Investment Houses Law RULE ON STOCKBROKERAGE OR DEALERSHIP FUNCTIONS

FAILURE TO DISCLOSE TO THE COMMISSION THAT THEY ARE ENGAGED IN THE BUSINESS OF DEALING IN GOVERNMENT SECURITIES.

Fine not exceeding 200.00 per day for every day during which such violation or non-compliance continues





50,000

100,000

200,000

92








of this Scale)


of this Scale)


of this Scale)

(11) SELF REGULATORY ORGANIZATIONS, EXCHANGES Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT




Section 32 VIOLATION OF THE PROHIBITION ON THE USE OF UNREGISTERED EXCHANGE; FAILURE TO RENEW LICENSE

100,000 200,000 300,000


SUJBECT REPORT VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section 68 of SRC; SRC Rule 68 AUDITED FINANCIAL STATEMENTS

LATE-FILING

0.001% of the maximum aggregate amount of the total and issued and outstanding

shares or 50,000, whichever is higher








93



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

NON-FILING


or 200,000, whichever is higher









MATERIAL DEFICIENCY












10,000 20,000 30,000


LATE FILING


NON-FILING



1,000 2,000 4,000

SRC Rule 39.1.1(f) AUDIT CALENDAR (on or before the 15th of January of every year or notify the Commission of any amendment thereto)

LATE FILING OR NON-FILING

20,000 basic penalty Plus500/day of delay

30,000 basic penalty Plus 1,000/day of delay

50,000 Plus 1,500/day of delay

94



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 39.1.1 (f) MONTHLY REPORT OF PERIODIC EXAMINATIONS (within ten (10) days after the end of each month)

LATE OR NON-FILING 20,000 basic penalty Plus 500/day of delay



SRC Rule 30.2.8 LATE OR NON-FILING OF BLOCK SALE REPORT

50,000 75,000 100,000

SRC Rule 39.1.1(E) LATE OR NON-FILING OF CEILING/FLOOR ALERTS* *This should be filed with the Enforcement and Investors’ Protection Department

50,000 75,000 100,000

SRC Rule 39.1.1(j) FAILURE OF SRO TO FILE REQUIRED REPORT

50,000 75,000 100,000

SRC Rule 39.1.2(c) FAILURE TO AMEND SEC FORM 39







computed


Computed

95



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)




computed


Computed


LATE-FILING


n/a

n/a

NON-FILING


n/a

n/a


LATE-FILING



Suspension of CA

NON-FILING

25,000 plus 100 daily penalty 30,000 plus 100 daily penalty

Suspension of CA

Revised Code on Corporate Governance

LATE-FILING



Suspension of CA

96



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

CERTIFICATION BY THE SECRETARY ON THE ATTENDANCE OF DIRECTORS TO MEETING

NON-FILING

25,000 plus 100 daily penalty 30,000 plus 100 daily penalty

Suspension of CA


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA



10,000

20,000

Suspension of CA

11.3. OPERATIONAL PRUDENTIAL AND OTHER REQUIREMENTS LEGAL BASIS VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 33.2 (c) NON-COMPLIANT AS TO COMPOSITION OF THE BOARD OF AN EXCHANGE

100,000

200,000 300,000

97

LEGAL BASIS VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 33.2 (c) FAILURE TO COMPLY WITH THE OWNERSHIP REQUIREMENT

100,000 basic penalty plus P100/day of delay


200,000 basic penaly plus P100/day of delay

SRC Rule 33.2 (d) FAILURE OF AN EXCHANGE TO PROTECT CUSTOMER ACCOUNTS IN CASE OF BUSINESS FAILURE



200,000 basic penaly plus P100/day of delay

SRC Rule 39.1.1(d) FAILURE TO SUPERVISE LISTED COMPANIES

50,000 75,000 100,000

SRC Rule 39.1.1(e) FAILURE TO COMPLY WITH REQUIREMENTS ON COMPLIANCE AND SURVEILLANCE

50,000 75,000 100,000

SRC Rule 39.1.1(g) FAILURE TO INVESTIGATE SUSPECTED VIOLATION OF THE SECURITIES LAW AND SRO RULES BASED ON COMPLAINTS, EXAMINATION/AUDIT FINDINGS OR UNUSUAL TRADING ACTIVITIES OR VERIFIED REFERRALS FROM A MEMBER, TRADING PARTICIPANT, SRO OTHER THAN AN EXCHANGE, CLEARING AGENCY, TRANSFER AGENT, ANY REGISTERED PERSON, OR THE

50,000 75,000 100,000

98


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

COMMISSION AND TAKE DISCIPLINARY ACTION, WHERE APPROPRIATE, PURSUANT TO SRO RULES

SRC Rule 39.1-1 (F) FAILURE OF SRO TO SEND DEFICIENCY LETTER, IF WARRANTED

50,000 75,000 100,000

SRC Rule 39.1-1 (F) FAILURE OF SRO TO INITIATE INVESTIGATION, IF WARRANTED

50,000 75,000 100,000

SRC Rule 39.1-1 (G-i) FAILURE OF SRO TO INVESTIGATE SUSPECTED VIOLAITIONS OF SRC SECTIONS 24, 26, 27

50,000 75,000 100,000

SRC Rule 39.1-1 (G-ii)

FAILURE OF SRO TO INVESTIGATE VIOLATION OF RULES ON SALES PRACTICES, ETC

50,000 75,000 100,000

SRC Rule 39.1-1 (G-iii) FAILURE OF SRO TO NOTIFY THE COMMISSION OF INVESTIGATION OF SRC SECTIONS 24,26,27

10,000 30,000 50,000

SRC Rule 39.1.1(h)/SRC Rule 40.6

FAILURE TO DISCIPLINE A MEMBER, INCLUDING SUSPENSION OR EXPULSION OF A MEMBER, IF SUCH PERSON HAS BEEN FOUND TO HAVE BEEN

50,000 75,000 100,000

99


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

ENGAGED IN A VIOLATION OF SRO RULES OF PROVISIONS OF THE SECURITIES LAW, INCLUDING BUT NOT LIMITED TO, ILLEGAL SALES PRACTICES, FINANCIAL AND OPERATIONAL REQUIREMENTS, TRADING AND FLOOR RELATED VIOLATIONS, AND/OR VIOLATION OF SRO LISTING RULES

SRC Rule 39.1.1(i) FAILURE TO COMPLY WITH DISCIPLINARY ACTION OF THE COMMISSION

50,000 75,000 100,000

SRC Rule 39.1.2(b) FAILURE TO REGISTER AS AN SRO

100,000 200,000 300,000

SRC Rule 39.1.2(f) FAILURE OF SRO TO SEND TO THE COMMISSION COPIES OF ANY NOTICES, REPORTS OR RECORDS OF CHANGES COVERED BY AMENDMENTS




SRC Rule 39.1.3 FAILURE TO COMPLY WITH RULES ON ALLOCATION OF REGULATORY RESPONSIBILITIES AMONG SROS




100


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 40.2 FAILURE OF SRO TO COMPLY WITH SRC PROVISIONS, THE RULES AND REGULATIONS THEREUNDER, AND ITS OWN RULES, AND ENFORCE COMPLIANCE THEREWITH, NOTWITHSTANDING ANY PROVISION OF THE CORPORATION CODE TO THE CONTRARY, BY ITS MEMBERS, PERSONS ASSOCIATED WITH ITS MEMBERS OR ITS PARTICIPANTS




SRC Rule 40.3 FAILURE OF SRO, REGISTERED EXCHANGE OR TRADING PARTICIPANT AND ANY REGISTERED CLEARING AGENCY TO SUBMIT PROPOSED RULE OR AMENDMENT THERETO OR TO OBSERVE PROCEDURE ON RULE MAKING




SRC Rule 40.4 FAILURE OF SRO, REGISTERED EXCHANGE OR TRADING PARTICIPANT AND ANY REGISTERED CLEARING AGENCY TO COMPLY WITH THE




101


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

COMMISSION’S ORDER TO EFFECT CHANGES IN ITS RULE/PRACTICE

SRC Rule 40.7 FAILURE OF SRO TO NOTIFY THE COMMISSION OF ANY DISCIPLINARY SANCTION OF ANY MEMBER




SRC Rule 52.1-3 VIOLATION OF RULE ON KEEPING OF EXCHANGE RECORDS






50,000

100,000

200,000




of this Scale)


of this Scale)


of this Scale)

102

(12) CLEARING AGENCIES Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT 12.1. LICENSING REQUIREMENT

LEGAL BASIS VIOLATION FIRST OFFENSE (Amounts in Pesos)



SRC Rule Section 41 PROHIBITION ON THE USE OF UNREGISTERED CLEARING AGENCY

100,000 200,000 300,000

SRC Rule 42.1(a) FAILURE TO REGISTER AS CLEARING AGENCY

100,000 200,000 300,000



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 42.1(e) AUDITED FINANCIAL STATEMENTS SEC Form 42-FS

LATE OR NON-FILING OF ANNUAL AUDITED FINANCIAL STATEMENTS





MATERIAL DEFICIENCY



30,000 per AFS or 3,000 per material deficiency,







30,000 or 1/30 of 1% of the amount of

misstatement, whichever is higher1

103



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)


10,000 20,000 30,000


LATE FILING


NON-FILING



1,000 2,000 4,000

SRC Rule 42.1(d) SEC Form 42-CA

FAILURE TO FILE AMENDMENT FORM FOR CLEARING AGENCIES








Computed

104



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)




computed


Computed

Revised Code on Corporate

Governance

MANUAL ON CORPORATE

GOVERNANCE

LATE-FILING 10,000 plus 100 daily

n/a n/a

NON-FILING 25,000 plus 100 daily penalty

n/a n/a

Revised Code on Corporate

Governance

CERTIFICATION BY THE

SECRETARY ON THE

ATTENDANCE OF DIRECTORS

TO MEETING

LATE-FILING



Suspension of CA

NON-FILING 25,000 plus 100 daily penalty


Suspension of CA

Revised Code on Corporate Governance CERTIFICATION BY THE

LATE-FILING



Suspension of CA

105



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

COMPLIANCE OFFICERS ON THE EXTENT OF COMPLIANCE WITH MANUAL ON CORPORATE GOVERNANCE

NON-FILING



Suspension of CA



10,000

20,000

Suspension of CA


SUJBECT REQUIREMENT VIOLATION FIRST OFFENSE

(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

SRC Rule 42.1(b) FAILURE OF A CLEARING AGENCY TO PAY THE PRESCRIBED ANNUAL FEE

50,000basic penalty Plus 500/day of delay



SRC Rule 42.2 FAILURE TO REPORT DAILY BREACHES OF RULES OR DIFFICULTIES BY PARTICIPANT





FAILURE TO ENGAGE THE SERVICES OF AN EXTERNAL AUDITOR WITH A GROUP B ACCREDITATION

50,000

100,000

200,000

106

LEGAL BASIS/ SUJBECT REQUIREMENT


(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)




of this Scale)


of this Scale)


of this Scale)

(13) ALTERNATIVE TRADING SYSTEMS Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT




Section 37 of the SRC; Section II of the ATS Rules

VIOLATION OF REGISTRATION REQUIREMENT OF ATS

100,000 150,000 200,000



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)


LATE-FILING

0.001% of the maximum aggregate amount of the total and issued and outstanding

shares or 50,000, whichever is higher



or 100,000, whichever is higher plus



total issued and outstanding shares or 200,000, whichever is

higher

107



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)


NON-FILING


or 200,000, whichever is higher



or 300,000, whichever is higher Plus 1,000 per day of delay


total issued and outstanding shares or 400,000, whichever is

higher Plus 1,000 per day of

delay


MATERIAL DEFICIENCY













10,000 20,000 30,000


LATE FILING


NON-FILING



1,000 2,000 4,000

108



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section G(1), Rules and Regulations on ATS ATS Form 2 ATS Form 2-A ATS Form 3 ATS Form 4 ATS Form 5 ATS Form 6

LATE FILING OR NON-FILING OF THE REPORTS

10,000 basic fine plus 500/day of delay





(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Section G(2), Rules and Regulations on ATS

Late Amendment or Non-Amendment of Registration Statement

10,000 basic fine plus 1,000/day of delay




Late or Non-Approval of Investors’ Training Program





Violation of any provision of the Rules and Regulations on ATS

50,000 per violation

100,000 per violation 200,000 per violation and cancellation of

registration


FAILURE TO ENGAGE THE SERVICES OF AN EXTERNAL AUDITOR WITHOUT A GROUP B

50,000

100,000

200,000

109



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

ACREDITATION




of this Scale)


of this Scale)


of this Scale)

(14) TRANSFER AGENTS Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT

14.1. LICENSING REQUIREMENT LEGAL BASIS/SUBJECT REPORT VIOLATION FIRST OFFENSE



SRC Rule 36-4.1 (SEC Form 36-TA)

FAILURE TO REGISTER AS TRANSFER AGENT

50,000

75,000 100,000





SRC Rule 36.4.2(a) ANNUAL REPORT SEC Form 36-AR

LATEOR NON-FILING FILING OF ANNUAL REPORT




SRC Rule 36.4.2(a) AUDITED FINANCIAL STATEMENTS

LATE OR NON-FILING OF ANNUAL AUDITED FINANCIAL STATEMENTS




110






MATERIAL DEFICIENCY




whichever is higher









10,000 20,000 30,000


LATE-FILING




NON-FILING



1,000 2,000 4,000


LATE FILING The basis of the penalty is the “Total Assets” reported in the latest Financial Statements Up to P100,000: 500



Computed

111





100,001 to 500,000: 1,500 500,001 to 5,000,000: 2,500 5,000,001 to 10,000,000: 3,500 Above 10,000,000: 5,000




computed


Computed


LATE-FILING


n/a

n/a

NON-FILING

25,000 plus 100 daily penalty n/a

n/a


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA

Revised Code on Corporate Governance

LATE-FILING



Suspension of CA

112





CERTIFICATION BY THE SECRETARY ON THE ATTENDANCE OF DIRECTORS TO MEETING

NON-FILING



Suspension of CA


LATE-FILING



Suspension of CA

NON-FILING



Suspension of CA



10,000

20,000

Suspension of CA

SRC Rule 36.4.1(d) FAILURE TO REPORT AMENDMENTS TO SEC FORM 36-TA




SRC Rule 36.4.2(b) EXCEPTION REPORTS (SEC FORM 36-ER) WITHIN SEVEN (7) DAYS OF THE OCCURRENCE OF ANY OF THE FOLLOWING EVENTS STATED UNDER SRC RULE 36.4 PARAGRAPH 2 (B)

FAILURE TO TIMELY SUBMIT REPORT




113





SRC Rule 36-4.2(e) FAILURE TO SUBMIT OTHER REPORTS








SRC Rule 36-4.2(c) FAILURE TO COMPLY WITH PERIODIC REPORTING TO ISSUER REQUIREMENT




SRC Rule 36-4.2(d) FAILURE TO MAINTAIN A COMPLAINT LOG




SRC Rule 36–4.3 FAILURE TO MAINTAIN REQUIRED RECORDS






25,000 50,000

100,000




of this Scale)


of this Scale)


of this Scale)

114

(15) OTHER PROHIBITED PRACTICES AND SCHEMES UNDER THE SECURITIES REGULATION CODE



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Sec. 24, SRC Manipulative Practices

Individual/Corporation/ Broker Dealer of Securities: 100,000.00 + 100% of the

profits gained or losses avoided

Individual/Corporation/Broker Dealer of Securities: 150,000.00 + 100% of the profits gained or

losses avoided

Individual/Corporation/Broker Dealer of Securities: 200,000.00 + 100% of the


Associated Person or Salesman: 75,000.00



Sec. 26, SRC Fraudulent Transactions Individual/Corporation/Broker Dealer of Securities:

100,000.00 + 100% of the profits gained or losses

avoided


losses avoided






Sec. 27, SRC Insider’s Trading Individual/Corporation/Broker Dealer of Securities:

100,000.00 + 100% of the profits gained or losses

avoided


losses avoided






115



(Amounts in Pesos)

SECOND OFFENSE

(Amounts in Pesos)

THIRD OFFENSE

(Amounts in Pesos)

Sec. 54 & 68, SRC Failure of any public

companies and secondary

licensees of the

Commission including

those significant

subsidiaries, that propose

to receive property in

exchange for shares of

stock, to submit an

appraisal report issued by

an SEC-accredited appraisal

company

Denial of the request for

approval of the consideration

(1) 50,000 fine;

(2) The appraisal report shall not

be accepted as a supporting

document to the application

or financial statements

(3) The violation shall be

referred to EIPD for

appropriate investigation.

Failure of public

companies and secondary

licensees and their

significant subsidiaries,

that have adopted the fair

value model in measuring

their properties pursuant

to Philippine Financial

Reporting Standards, to

engage the services of an

SEC-accredited appraisal

company

1/100 of 1% of the fair value

of the property recorded in

the financial statements

without the required

valuation of an accredited

appraisal company

1/100 of 1% of the fair value of

the property recorded in the

financial statements without the

required valuation of an

accredited appraisal company

1/100 of 1% of the fair

value of the property

recorded in the financial

statements without the

required valuation of an

accredited appraisal

company

116

C. INDEPENDENT PROFESSIONALS, FIRMS AND EXPERTS

(16) EXTERNAL AUDITORS AND AUDIT FIRMS In-Charge: OFFICE OF THE GENERAL ACCOUNTANT 16.1. ACCREDITATION REQUIREMENT

LEGAL BASIS




Section 68 of SRC; SRC Rule 68

Acceptance by an external auditor or firm of an audit of financial statements of a covered corporation without prior accreditation as an external auditor and/or audit firm with the appropriate category of accreditation (Group A, B, or C)

Group A: 50,000 Group B: 25,000 Group C: 10,000

(1) Group A: 100,000 Group B: 50,000 Group C: 20,000

(2) Referral to EPD for appropriate investigation; and

(3) Referral to the Board of Accountancy for appropriate proceedings on the revocation of accreditation or other action.

-

117


LEGAL BASIS/ REPORT




SRC Rule 68, as amended REPORT ON DISAGREEMENTS WITH CLIENTS; FINDINGS OF MATERIAL FRAUD, ERROR, SIGNIFICANT LOSSES OR WEAKNESS IN INTERNAL CONTROLS

FAILURE TO TIMELY SUBMIT THE REPORT


Group A: 100,000 and suspension of accreditation Group B: 50,000 and suspension of accreditation Group C: 20,000 and suspension of accreditation

Group A: 200,000 and removal of accreditation Group B: 100,000 and removal of accreditation Group C: 40,000 and removal of accreditation

SRC Rule 68, as amended REPORT ON MATERIAL CHANGES IN THE FIRM’S OR THE ACCOUNTING OFFICE’ STRUCTURE, COMPOSITION, QUALITY CONTROLS

FAILURE TO TIMELY FILE THE REPORT




16.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS LEGAL BASIS/




SRC Rule 68, as amended COMPLIANCE WITH AUDITING STANDARDS, CODE OF ETHICS AND OTHER REQUIREMENTS UNDER

Failure to comply with prescribed auditing standards, as maybe shown by the findings on the financial statements

50% of the amount imposable on the corporate client whose audited financial statements

are materially deficient or misstated

Group A: 100,000 and suspension of accreditation Group B: 50,000 and suspension of

Group A: 200,000 and removal of accreditation Group B: 100,000 and removal of accreditation

118





THE SEC RULES audited by the accredited external auditor or such other findings as maybe established

If impact of non-compliance is

not quantifiable: Group A: 50,000 Group B: 25,000 Group C: 10,000

accreditation Group C: 20,000 and suspension of accreditation

Group C: 40,000 and removal of accreditation

Failure to comply with the Code of Ethics for Professional Accountants including independence requirements



Group A: 200,000 and removal of accreditation Group B: 100,000 and removal of accreditation Group C: 40,000 and removal of accreditation

Failure to allow the conduct of Quality Assurance Review (QAR) or to provide requested records and documents during the QAR


Plus PhP 100 daily fine until compliance





Failure to timely pay the prescribed annual fee

Daily fine of PhP 100 Daily fine of PhP 500 Daily fine of PhP 1,000

Failure to adopt and implement quality control standards in the conduct of audit


Group A: 100,000 and suspension of accreditation Group B: 50,000 and suspension of accreditation

Group A: 200,000 and removal of accreditation Group B: 100,000 and removal of accreditation

119





Group C: 20,000 and suspension of accreditation

Group C: 40,000 and removal of accreditation

Failure to comply with other requirements of SRC Rule 68, as amended and other Guidelines issued by the Commission




17. CREDIT RATING AGENCIES In-Charge: OFFICE OF THE GENERAL ACCOUNTANT

17.1. ACCREDITATION REQUIREMENT LEGAL BASIS/




Sections 12.1 and 54 of SRC; SRC Rule 12.1; REGISTRANTS OF DEBT SECURITIES MUST BE RATED BY AN ACCREDITED CREDIT RATING AGENCY

THE CREDIT RATING AGENCY WHICH ISSUED THE RATING IS NOT ACCREDITED WITH THE COMMISSION

The credit rating report shall not be accepted as a

supporting document to the registration statement

(1) 50,000 fine shall be imposed on the registrant and rating agency;

(2) The credit rating report shall not be accepted as a supporting document to the registration statement;

-

120

(3) The violation shall be referred to EIPD for appropriate investigation.


LEGAL BASIS/ REPORT




SRC Rule 12 FAILURE TO SUBMIT THE PRESCRIBED REPORTS UNDER THE RULE

25,000 50,000 100,000 and suspension of

accreditation

17.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS LEGAL BASIS




SUBSEQUENT OFFENSES

(Amounts in Pesos)

SRC Rule 12 ANNUAL FEE

FAILURE TO TIMELY SETTLE THE PRESCRIBED ANNUAL FEE

10,000 plus P100 per day of delay



40,000 plus 100 per day of delay and suspension of accreditation

FAILURE TO COMPLY WITH THE PRESCRIBED INDEPENDENCE, STRUCTURE AND PROCEDURAL REQUIREMENTS UNDER THE RULE

50,000

100,000 and suspension of accreditation

200,000 and removal of accreditation

-

121

18. APPRAISAL COMPANIES In-Charge: OFFICE OF THE GENERAL ACCOUNTANT

18.1. ACCREDITATION REQUIREMENT

LEGAL BASIS




Section 62 of the Corporation Code; Section 68 of the SRC; SEC MC 4, s2010 or the amended MC

Acceptance by an appraisal company of an appraisal engagement with a covered corporation without prior accreditation with the Commission

The appraisal report shall not be accepted as a supporting document

to the application or financial statements

(1) 50,000 fine; (2) The appraisal report shall not

be accepted as a supporting document to the application or financial statements

(3) The violation shall be referred to EIPD for appropriate investigation.

-

Failure of any issuers of securities to the public or public companies that propose to transfer or has transferred property to another entity in exchange for cash or property, to submit an appraisal report issued by SEC accredited appraisal company


consideration

1/100 of 1% of the amount of consideration

1/100 of 1% of the amount of consideration

Failure of any public companies and secondary licensees of the Commission that declare property dividend without any support or appraisal report of an accredited appraiser

1/100 of 1% of the property dividend



122


LEGAL BASIS




Section 62 of Corporation Code; Section 68 of the SRC; SEC MC 4, s2010 or the amended MC

FAILURE TO TIMELY SUBMIT ANNUAL REPORT MATERIALLY INCOMPLETE ANNUAL REPORT

10,000 plus 100 daily fine

10,000

20,000 plus P 100 daily fine

20,000



FAILURE TO TIMELY SUBMIT COPIES OF RENEWED LICENSE/S OF THE APPRAISAL COMPANY’S PROPERTY VALUER/S

10,000 20,000 50,000 and suspension of accreditation

MATERIAL MISREPRESENTATION IN THE ANNUAL REPORT

10,000 20,000 P50,000 and suspension of accreditation

MATERIAL MISREPRESENTATION IN ANY APPRAISAL REPORT ISSUED BY THE COMPANY

50,000



123

18.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS LEGAL BASIS




Section 62 of Corporation Code; Section 68 of the SRC; SEC MC 4, s2010 or the amended MC

FAILURE TO TIMELY PAY THE PRESCRIBED ANNUAL FEE


20,000 plus P100 per day of delay 40,000 plus P100 per day of delay

FAILURE TO COMPLY WITH THE PRESCRIBED OPERATIONAL AND QUALIFICATION REQUIREMENTS FOR ACCREDITED APPRAISAL COMPANIES

50,000



19. OTHER VIOLATIONS

LEGAL BASIS




SEC MC No. 20. s.1999 CORPORATION WHOSE INCORPORATOR/S IS/ARE MINOR/S

Revocation n/a n/a

SEC MC No. 20. s.1999 INCORPORATOR/S WITH FAKE TIN’S (TAXPAYER IDENTIFICATION CARD/S)

Revocation n/a n/a

SEC MC No. 20. s.1999 INCORPORATOR/S WHO IS/ARE DECEASED AT THE TIME OF INCORPORATION

Revocation n/a n/a

SEC MC No. 20. s.1999 OFFICER/S WHO ARE DECEASED

Revocation

124

Sec. 21 of Corporation Code CORPORATION BY ESTOPPEL

P 10,000 P 20,000 Revocation

Sec. 45 of Corporation Code ULTRA-VIRES ACTS


UNAUTHORIZED USE OF PREVIOUSLY REGISTERED CORPORATE NAME


SUBMISSION OF SPURIOUS OR FALSIFIED DOCUMENTS

Revocation n/a n/a

as of 13 November 2013

a. registered corporations with no secondary license€¦ · 1 consolidated scale of fines a....

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