SEC

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
AND

NON-FILING The basis of the penalty is the

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

Total fine plus
computed
Total fine plus
computed
2

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 68 of the Securities
Regulation Code (SRC); SRC Rule 68

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

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

"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

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

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

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


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

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

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

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

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

10,000

10,000

10,000

4

LEGAL BASIS/
REQUIREMENT

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
the By-Laws

5,000

5,000

5,000

5

LEGAL BASIS/
REQUIREMENT

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 48 of CCP
DATE OF ANNUAL MEETING
Changes in the Annual
Date of Meeting
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
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/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

AND


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

Total fine plus
computed
Total fine plus
computed

AND


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

Total fine plus
computed
Total fine plus
computed
7

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 68 of SRC; SRC Rule 68, as
amended


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


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

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

Section 68 of SRC; SRC Rule 68

MATERIAL
MISSTATEMENT/
MISREPRESEN-TATION
whichever is higher
An amount based on the above
scale or 2/10 of 1% of the
amount of misstatement,
whichever is higher
of the amount of
higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

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

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

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

8

2.2 OTHER REQUIREMENTS
LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 16 of CCP
CORPORATE NAME

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

2,500

2,500

2,500

Section 16 of CCP

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

Section 16 of CCP
PURPOSE

CHANGES IN CORPORATE
PURPOSE WITHOUT
AMENDMENT OF THE
ARTICLES OF
INCORPORATION

5,000

5,000

5,000

Section 25 of CCP
SECRETARY AND/ OR TREASURER

ELECTION OF PRESIDENT
AS SECRETARY AND/ OR
TREASURER

2,500

2,500

2,500

9

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 25 of CCP
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

Section 25 of CCP
ELECTION OF A
SECRETARY WHO IS NOT
A FILIPINO
2,500

2,500

2,500

Section 46 of CCP
BY-LAWS
NON-REGISTRATION
5,000 n/a n/a
Section 46 of CCP
BY-LAWS
LATE- REGISTRATION
500 n/a n/a
Section 48 of CCP
FISCAL YEAR
CHANGES IN FISCAL
YEAR WITHOUT
AMENDMENT OF THE
BY-LAWS

2,500

2,500

2,500

Section 48 of CCP

CHANGES IN THE
ANNUAL DATE OF
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
2,500

2,500

2,500

Section 50 of CCP
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/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Code of the Philippines and
Memorandum Circular No. 15
Series of 2006

AND


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

Total fine plus
computed
Total fine plus
computed
Section 141 of the CCP;
Memorandum Circular No. 15,
Series of 2006

AND


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

Total fine plus
computed
Total fine plus
computed
11

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Sec. 68 of the SRC; SRC Rule 68

MATERIAL DEFICIENCY The basis of the penalty is the

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

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:
6,000
Above 10,000,000: 8,000


MATERIAL
MISSTATEMENT/
MISREPRESENTATION
whichever is higher

whichever is higher
of the amount of
misstatement, whichever
is higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

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


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

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

12

3.1. b. OTHER REQUIREMENTS
LEGAL BASIS/
REQUIREMENT

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

Additional:: 1,000 per month of
delay

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
Section 126 of CCP

SECURITIES DEPOSIT
INADEQUATE OR LATE
ADDITIONAL SECURITIES
DEPOSIT
delay

Surcharge: 1,000 per month of
delay

Surcharge: 1,500 per
month of delay

Section 126 of CCP

SECURITIES DEPOSIT

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

Basic fine: 10,000
delay

Basic fine: 10,000
delay

Surcharge: 1,500 per
month of delay

13

LEGAL BASIS/
REQUIREMENT

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

Section 131 of CCP
PURPOSE

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




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

(60) days after the
amendment becomes
effective.




14

3.2 NON-STOCK BRANCH OFFICE/ REPRESENTATIVE OFFICE

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Series of 2006

AND


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

Total fine plus
computed
Total fine plus
computed
Series of 2006

AND

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

Total fine plus
computed
Total fine plus
computed
15

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)


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


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 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


MATERIAL
MISSTATEMENT/
MISREPRESENTATION
whichever is higher

whichever is higher -
of the amount of
is higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

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


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
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

16

3.2. b. OTHER REQUIREMENTS
LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Series of 2006
AFFIDAVIT OF NON-OPERATION

LATE FILING

NON-FILING
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)

Basic fine: 10,000
delay

Basic fine: 10,000
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

(60) days after the
amendment becomes
effective.

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000

Section 131 of CCP
PURPOSE
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

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Code of the Philippines;
Series of 2006

AND

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

Total fine plus
computed
Total fine plus
computed
Series of 2006

AND

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

Total fine plus
computed
Total fine plus
computed
18

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 68 of SRC;
SRC Rule 68

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


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 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



MATERIAL
MISSTATEMENT/
MISREPRESENTATION
whichever is higher

whichever is higher
the amount of
higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

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: 2,0

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

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

19

3.3.b. OTHER REQUIREMENTS
LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
delay

n/a

n/a

Series of 2006
AFFIDAVIT NON-OPERATION

LATE FILING

NON-FILING
1,250

2,500
2,500

5,000

5,000

10,000
Section 131 of CCP

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




3.4. REGIONAL AREA HEADQUARTERS

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)


Total fine plus
computed
Total fine plus
computed
20

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
AND

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


AND


Up to 100,000: 1,500
100,001 to 500,000: 3,000
500,001 to 10,000,000: 5,000
10,000,001 to 100,000,000:
7,000
Above 100,000,000: 10,000

Total fine plus
computed
Total fine plus
computed
Section 68 of SRC;
SRC Rule 68


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


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

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

21

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 68 of SRC;
SRC Rule 68

MATERIAL
MISSTATEMENT/
MISREPRESENTATION
whichever is higher
whichever is higher
the amount of
higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

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


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

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

3.4.b OTHER REQUIREMENTS
LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Memorandum Circular No. 15,Series
of 2006; Article 58 & 59 of the

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
delay

n/a n/a
22

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
of 2006; Article 58 &59 of the

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

Basic Fine - .004 of the actual
remittance
Surcharge of 1,000 per month
of delay

Basic Fine - .005 of the
actual remittance
Surcharge of 1,500 per
month of delay

of 2006

AFFIDAVIT OF NON-OPERATION

LATE FILING

NON-FILING
1,250

2,500

2,500

5,000

5,000

10,000
Section 131 of CCP

PURPOSE
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
LEGAL BASIS/
SUBJECT REPORT
VIOLATION SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

AND


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

Total fine plus
computed
Total fine plus
computed

AND


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

Total fine plus
computed
Total fine plus
computed
amended


Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500

Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
Statements

Up to 100,000: 800
100,001 to 500,000: 1,200
24

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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


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)

LATE FILING

NON-FILING

2,500

5,000

5,000

10,000

10,000

20,000

amended

MATERIAL
MISSTATEMENT/
MISREPRESENTATION
whichever is higher

whichever is higher
of the amount of
higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68


Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500

Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
Statements

Up to 100,000: 800
100,001 to 500,000: 1,200
25

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 16 of CCP
CORPORATE NAME

name without
amendment of the

2,500

2,500

2,500

Section 16 of CCP

Changes in the Principal
Office Address without
amendment of the

2,500

2,500

2,500

Section 16 of CCP
BOARD OF TRUSTEES

Increase in number of
Board of Trustees
the Articles of
Incorporation

2,500

2,500

2,500

Section 16 of CCP

PURPOSE

Changes in corporate
purpose without
amendment of the

5,000

5,000

5,000

26

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 25 of CCP

SECRETARY AND/ OR TREASURER
Election of President as
Secretary and/or
Treasurer
2,500

2,500

2,500

Section 25 of CCP

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

Section 25 of CCP


Election of a Secretary
who is not a Filipino
2,500

2,500

2,500

Section 46 of CCP
BY-LAWS
NON-REGISTRATION OF
BY-LAWS
5,000

n/a

n/a

Section 46 of CCP
BY-LAWS

LATE REGISTRATION OF
BY-LAWS
500

n/a

n/a

Section 48 of CCP

FISCAL YEAR
CHANGES IN FISCAL
YEAR WITHOUT
AMENDMENT OF THE
BY-LAWS

2,500

2,500

2,500

Section 48 of CCP


CHANGES IN THE
ANNUAL DATE OF
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
2,500

2,500

2,500

27

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 50 of CCP

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
LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Sec. 9 of LCRA of 2007; Rule 8(a)
of its IRR
AUDITED FINANCIAL
STATEMENTS

LATE-FILING

10,000 plus
100 daily
20,000 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

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

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

10,000 20,000 30,000
29

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
of its IRR

INTERIM FINANCIAL
STATEMENTS

LATE-FILING

NON-FILING

5,000 plus
100 daily

10,000 plus 100 daily penalty
10,000 plus
100 daily


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
whichever is higher

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

MATERIAL DEFICIENCY 10,000 or 1/10 of 1% of the
whichever is higher

20,000 or 1/20 of 1% of the
whichever is higher
30,000 or 1/30 of 1% of the
whichever is higher
OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

P10,000 P20,000 P30,000
of its IRR

SPECIAL FORM OF FINANCIAL
STATEMENTS (LCFS)
(hard and soft copies)

LATE-FILING

NON-FILING

10,000 plus
100 daily penalty

15,000 plus
100 daily penalty

Suspension of CA

Suspension of CA
GENERAL INFORMATION SHEET

Total fine plus
10% of the total fines computed
Total fine plus
computed
30

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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


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

Total fine plus
computed
Total fine plus
Computed
Rule 17.1(2)(c) of the Amended
IRR of SRC

ANNUAL INFORMATION
STATEMENT FOR ISSUERS OF
COMMERCIAL PAPERS

LATE FILING

10,000 plus
100 daily penalty
15,000 plus
100 daily penalty

Suspension of CA
NON-FILING

20,000 plus
100 daily penalty

25,000 plus
100 daily penalty
Suspension of CA
INCOMPLETE REPORT 10,000 plus
100 daily penalty

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

5,000 plus
100 daily
10,000 plus
100 daily

Suspension of CA
NON-FILING


INCOMPLETE REPORT 10,000 15,000 20,000

31

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SEC MC no. 2, S. of 2010
REVISED ANTI-MONEY
LAUNDERING OPERATING
MANUAL
LATE FILING

10,000 plus
100 daily penalty
n.a. n.a
NON-FILING

20,000 plus
100 daily penalty
n.a. n.a.
Sec. 74 of CCP
LATE REGISTRATION

2,000

n/a

n/a

5.3. OPERATIONAL, PRUDENTIAL, OTHER REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT

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

10,000 plus
100 daily penalty
20,000 plus
100 daily penalty
Suspension of CA
NON-PAYMENT OF
ANNUAL FEE
25,000 plus
100 daily penalty
30,000 plus
100 daily penalty
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

LEGAL BASIS/
SUBJECT REPORT

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
COMPANYS NETWORTH

BREACH OF LIMIT

1% of the amount of
investment in real estate in
excess of 25% of the
companys networth
3% of the amount of
excess of 25% of the companys
networth
Suspension of CA
Sec. 9 of LCRA of 2007; Rule 3(h)

TOTAL CREDIT EXTENDED TO THE
COMPANYS DIRECTORS,
OFFICERS, STOCKHOLDERS AND
RELATED INTERESTS (DOSRI)
COMPANYS NETWORTH

BREACH OF LIMIT

1% of the amount of credit
extended in excess of 15% of
the companys 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)
COMPANYS NETWORTH
BREACH OF LIMIT 1% of the amount of credit
Suspension of CA
33

LEGAL BASIS/
SUBJECT REPORT

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

LEGAL BASIS VIOLATION FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

FOR HEAD OFFICE

Operating a Financing
Company Head Office
Authority from SEC
10,000 plus
100 per day

n/a

n/a
Section 6(a), IRR

FOR BRANCH

Operating a Financing
Company Branch office
Authority from SEC
10,000 plus
100 per day
20,000 plus 100 per day 30,000 plus 100 per day

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 13(b), IRR
AUDITED FINANCIAL STATEMENTS
LATE-FILING

NON-FILING

10,000 plus 100 per day





35

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Sections 54 and 68 of SRC;
SRC Rule 68

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

20,000 per AFS or 2,000 per
whichever is higher
whichever is higher
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION

10,000 or 1/10 of 1% of the
whichever is higher

20,000 or 1/20 of 1% of the
whichever is higher
40,000 or 1/30 of 1% of the
whichever is higher

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

10,000 20,000 30,000

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)

LATE FILING

NON-FILING



36

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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)

LATE FILING

NON-FILING



MATERIAL DEFICIENCY 10,000 per FS or 500 per
whichever is higher
1

15,000 per FS or 1,000 per
whichever is higher
1

30,000 per FS or 2,000 per
whichever is higher
1

MATERIAL
MISSTATEMENT OR
MATERIAL
MISREPRESENTATION

10,000 or 1/10 of 1% of the
whichever is higher
1

15,000 or 1/20 of 1% of the
whichever is higher
1

30,000 or 1/30 of 1% of the
whichever is higher
1

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

10,000 20,000 30,000

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:
Total fine plus

Total fine plus
Computed
37

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
3,500
Above 10,000,000: 5,000

Section 141 of CCP


Up to P100,000: 1,000
100,001 to 500,000: 3,00
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000

Total fine plus
computed
Total fine plus
Computed
Anti-Money Laundering Act, as
amended

ANTI-MONEY LAUNDERING
MANUAL

LATE-FILING

10,000 plus
100 daily

n/a

n/a
NON-FILING

n/a

n/a
Revised Code on Corporate
Governance

MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

Governance

CERTIFICATION BY THE SECRETARY
ON THE ATTENDANCE OF
DIRECTORS TO MEETING
LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

38

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Governance

CERTIFICATION BY THE
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE
LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

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

5,000 plus
100 daily penalty
10,000 plus
100 daily penalty
Suspension of CA
NON-FILING

10,000 plus
100 daily penalty

15,000 plus
100 daily penalty
Suspension of CA
INCOMPLETE REPORT

10,000

15,000

20,000
Sec 74 of CCP

LATE REGISTRATION

2,000

n/a

n/a
39

6.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS
LEGAL BASIS/
SUBJECT REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
COMPANYS NETWORTH

BREACH OF LIMIT

1% of the amount of
excess of 25% of the compa-
nysnetworth
2% of the amount of
excess of 25% of the companys
networth
6% of the amount of
excess of the compa-
nysnetworth
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
COMPANYS NETWORTH (SINGLE
BORROWER LIMIT)

TOTAL CREDIT EXTENDED
TO A SINGLE BORROWER
EXCEEDS LIMITS

40

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
2% of the amount of
outstanding beyond maturity
date
6% of the amount of
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
30,000 plus
violation
41

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

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

25,000 50,000 100,000
Philippines (CCP)

CORPORATION

CCP

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
(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.
600,000.
1,000,000.
42

LEGAL BASIS/
REQUIREMENTS
(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
permit to sell

300,000.
600,000.
1,000,000.
Offering for sale of
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
(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

For listed companies:
20,000 plus
20,000 plus

40,000 plus
60,000 plus

120,000 plus
43

LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
NON-COMPLIANCE WITH
THE DISCLOSURE
REQUIREMENTS UNDER
SRC RULE 10.1
10,500 plus

21,000 plus
21,000 plus

42,000 plus

63,000 plus

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




NON-FILING OF REPORT



150,000.00 plus 300 per day



44

7.3. AMENDMENT OF REGISTRATION STATEMENT OF ISSUERS OF SECURITIES TO THE PUBLIC
LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

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
200 per day of delay of the filing
of the amendment

63,000 plus
600 per day of delay of the
filing of the amendment
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.

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

issued and outstanding shares or
30,000, whichever is higher
aggregate amount of the
total issued and outstanding
shares or 40,000, whichever
is higher

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

is higher
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
plus300 per day of delay
is higher
Plus 600 per day of delay
NON-FILING OF
QUARTERLY REPORT
(SEC FORM 17-Q)
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)
until a complete report is filed
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
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
shares or 200,000,
whichever is higher
plus
NON-FILING OF
ANNUAL REPORT
(SEC FORM 17-A)
shares or 400,000,
whichever is higher
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

AUDITED FINANCIAL
STATEMENTS

MATERIAL DEFICIENCY 10,000 for each material
deficiency
20,000 for each material
deficiency
40,000 for each material
deficiency


10,000 or
higher
20,000 or
higher
30,000 or
higher

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)
or 50,000, whichever is higher,
plus

100,000, whichever is higher,

shares or 200,000,
whichever is higher plus
48

LEGAL BASIS/
REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

NON- FILING OF
INFORMATION
1

STATEMENT
(SEC FORM 20-IS)
or P100,000, whichever is
higher plus

200,000, whichever is higher plus
shares or 400,000,
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
of continuing violation

100,000 plus 1,000 per day
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
25,000.00 plus
50,000.00 plus
Section 54 of SRC

MISLEADING STATEMENTS
IN ANY REPORTS
REQUIRED TO BE
SUBMITTED TO THE
COMMISSION
105,000 plus
violation

210,000 plus
1,000 per day of continuing
violation
420,000 plus
violation

1
In 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
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)


REPORTS BY 5% OR MORE
HOLDERS OF EQUITY SECURITIES
(SEC FORM 18-A/18-AS)
LATE FILING OF REPORT

purchase or disposition, or
10,000 per transaction
whichever is higher plus 100
per day of delay
transaction, or 20,000 per
transaction, whichever is higher
higher plus 300 per day of
delay

NON-FILING OF REPORT

per day of delay
delay

INCOMPLETE REPORT

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

STATEMENT OF BENEFICIAL
OWNERSHIP (SEC FORM 23-A/B)
LATE FILING OF
STATEMENT

P100 per day of delay
delay

NON-FILING OF
STATEMENT

per day of delay
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


BENEFICIAL OWNERSHIP REPORT
OF DIRECTORS AND OFFICERS

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

delay in the submission of
the report
20,000 plus 200 per day of delay in
the submission of the report
the report
SHOWING MORE THAN 100
SHARES BUT LESS THAN 5%
OF THE OUTSTANDING
EQUITY SECURITIES

the report
the 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)
delay
of filing the report
105,000 plus 1,000 per day of
delay
of filing the report
210,000 plus 2,000 per day
of delay
of filing a the report

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

delay of filing the report
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)
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
tender offer, whichever is
higher, plus 500 per day of
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
tender offer, whichever is
higher, plus 2,000 per day

ANY OTHER
REQUIREMENTS OF SRC
RULE 19-1 AND RELATED
GUIDELINES
210,000 plus 2,000 per day

Section 54 of the Securities
Regulation Code

MISLEADING STATEMENTS
IN ANY FILINGS REQUIRED
TO BE SUBMITTED TO THE
COMMISSION
105,000 plus
violation

210,000 plus
violation
420,000 plus
violation

7.6. OTHER REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC AND PUBLIC COMPANIES
LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

ELECTION OF INDEPENDENT
DIRECTORS

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

50,000 plus
violation

100,000 plus
500 per day of

150,000 plus
violation

52

LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

ACCREDITATION
OF EXTERNAL AUDITOR
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

100,000 plus
500 per day of
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
50,000 plus
300 per day of
100,000 plus
600 per day of
150,000 plus
1,800 per day of
Section 9 of ICA UNAUTHORIZED
AFFILIATIONS OF
DIRECTORS, OFFICERS AND
EMPLOYEES
52,500 plus
300 per day of
105,000 plus
600 per day of

210,000 plus
1,800 per day of

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
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
1,800 per day of
Section 11 of ICA UNAUTHORIZED OR
ILLEGAL ACTIVITIES OF
INVESTMENT COMPANIES
(Per illegal activity
/violation)
52,500 plus
300 per day of

105,000 plus
600 per day of

210,000 plus
1,800 per day of

Section 12 of ICA UNAUTHORIZED CHANGES
IN INVESTMENT POLICY
52,500 plus
300 per day of
105,000 plus
600 per day of

210,000 plus
800 per day of

Section 14 of ICA UNAUTHORIZED
CONTRACTS OF ADVISERS
AND UNDERWRITERS
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
800 per day of
Sections 22 & 23 of ICA;
ICA Rule 35-1 (e)
VIOLATION OF
REQUIREMENTS ON
DISTRIBUTION,
REDEMPTION, AND
REPURCHASE OF
SECURITIES
52,500 plus
300 per day of
105,000 plus
600 per day of

210,000 plus
800 per day of

Section 26 of ICA EXCESSIVE PERIODIC
PAYMENT PLAN
25,000 plus
100 per day of
50,000 plus
300 per day of
100,000 plus
600 per day of
Sections 25, 27 and 30 of ICA; ICA
Rule 35-1(e)(3);
FAILURE TO SUBMIT
REQUIRED REPORTS
AND/OR TO PUBLISH DAILY
PRICES
10,000 plus
100 per day of
20,000 plus
200 per day of
30,000 plus
400 per day of
54

LEGAL BASIS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 32 of ICA MISREPRESENTATION IN
ANY REPORT
52,500 plus
300 per day of
105,000 plus
600 per day of
315,000 plus
1,800 per day of
ICA Rule 35-1(d);
Section 7.5 of ETF Rules
VIOLATION OF RECITED
INVESTMENT OBJECTIVES
AND RESTRICTIONS
25,000 plus
100 per day of
50,000 plus
300 per day of
100,000 plus
600 per day of
ICA Rule 35-1(c)(2);
ETF Rules Section 17.1
NON-DEPOSIT OF SALES
PROCEEDS TO A
CUSTODIAN BANK
10,500 plus
300 per day of
21,000 plus
500 per day of
52,500 plus
600 per day of
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
10,000 plus
100 per day of
20,000 plus
200 per day of
30,000 plus
400 per day of
ICA Rule 35-1(i)(2);
ETF Rules Section 27.1(a)

NON-FILING OF MONTHLY
SALES/REDEMPTION
REPORT
20,000 plus
200 per day of
30,000 plus
300 per day of
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
10,000 plus
100 per day of
20,000 plus
200 per day of
30,000 plus
400 per day of
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

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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)
(GIS)
LATE OR NON-FILING

OTHER VIOLATIONS
RELATING TO THE GIS
See applicable violations
for stock corporations

See applicable violations for stock
corporations
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

15,000 plus 100/day of delay

20,000
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
200/day of delay
300/day of delay

57

LEGAL BASIS/
SUJBECT REPORT
(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

100/day of delay
200/day of delay

300/day of delay

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

delay
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

100/day of delay
200/day of delay
300/day of delay

8.3. OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
(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
violation
violation
15,000
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
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
50,000 plus
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

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
ASSOCIATED PERSON
A. COMPANY
B. INDIVIDUAL
15,000
10,000

30,000
15,000
30,000
20,000

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 52.1-5

ANNUAL AUDITED FINANCIAL
STATEMENT (AAFS)
SEC Form 52 AR

LATE OR NON-FILING
AAFS
delay

15,000 plus 100/day of delay

20,000

SRC Rule 68

AUDITED FINANCIAL
STATEMENTS

MATERIAL DEFICIENCY

10,000 per AFS or P1,000
per material deficiency,
whichever is higher
1

whichever is higher
1

whichever is higher
1

MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000 or 1/10 of 1% of the
whichever is higher
20,000 or 1/20 of 1% of the
whichever is higher
30,000 or 1/30 of 1% of the
whichever is higher

WITH THE
REQUIREMENTS OF SRC
RULE 68

10,000 20,000 30,000

STATEMENTS

LATE-FILING




60

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
NON-FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day

MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS

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.
delay
[Note: Alternative proposal,
failure to file the RBCA:
within 7 days P25k
within 14 days P50k plus
suspension]

30,000 Plus 200/day of delay


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

10,000
Plus 100/day of delay
30,000
50,000
SRC Rule 28.1-4 (C)

SEC Form 28-T
FAILURE TO NOTIFY
DISCONTINUATION OF
EMPLOYMENT OF
SALESMAN, ASSOCIATED
PERSON

10,000 Plus
100/day of delay
30,000 Plus
200/day of delay
50,000 Plus
300/day of delay
61

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
30,000
50,000
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

10,000
30,000
50,000
Rules Governing the Trading of
PSE Shares
REPORT ON
TRANSACTIONS/TRADING
OF PSE SHARES

50,000 75,000 100,000
LATE FILING The basis of the penalty is
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
computed

Total fine plus
Computed
62

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 141 of CCP

NON-FILING The basis of the penalty is
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

Total fine plus
computed
Total fine plus
Computed
amended

MANUAL
LATE-FILING

10,000 plus
100 daily

n/a

n/a
NON-FILING

25,000 plus 100 daily
penalty
n/a

n/a
Governance

MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
plus 100 daily penalty
30,000
Suspension of CA
Governance

SECRETARY ON THE
ATTENDANCE OF DIRECTORS TO
MEETING

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA
63

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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)

25,000 plus

50,000 plus

75,000 plus
violation

ANY
THE SUBMITTED MANUAL
ON CORPORATE
GOVERNANCE

25,000 plus
violation
50,000.00 plus
violation
100,000 plus
violation

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

25,000 plus
violation
50,000.00 plus
violation
100,000 plus
violation

LATE FILING OF THE
ANNUAL CORPORATE
GOVERNANCE REPORT

50,000 plus
violation
100,000.00 plus
violation
Suspension or Revocation

NON-FILING OF THE
ANNUAL CORPORATE
GOVERNANCE REPORT
100,000 plus
violation
200,000.00 plus
violation

Suspension or Revocation

64

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
MISREPRESENTATION/
OMISSION OF
INFORMATION IN THE
ANNUAL CORPORATE
GOVERNANCE REPORT

25,000 plus
violation
50,000.00 plus
violation
100,000 plus
violation

Governance
MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA
OTHER REQUIREMENTS,
OTHER REPRESENTATIONS IN
THE MANUAL OF CORPORATE
GOVERNANCE
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

10,000

20,000

Suspension of CA

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

25,000 plus
50,000 plus
SRC 28.1-1(E)(xi) FAILURE TO MAINTAIN
SEPARATE BANK
ACCOUNT FOR CLIENT
FUND

10,000
30,000
50,000
SRC Rule 30.2-1 VIOLATION OF THE
ETHICAL STANDARDS
RULE

25,000 50,000 100,000
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

violation

violation

violation

violation

violation

violation
75,000 plus 15,000/day of
violation

violation

violation

violation

violation

violation

violation
100,000 plus 20,000/day of
violation

violation

violation

violation

violation

violation

violation
71

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

violation

Immediate Suspension

violation

50,000
Plus 500/day of violation

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
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
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
ACCREDITATION
OF EXTERNAL AUDITOR

SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION

50,000

100,000

200,000

Philippines (CCP)
CORPORATION
CCP

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

LEGAL BASIS/
SUBJECT MATTER
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SALESMAN IN AN OTC
MARKET.
BROKERS OR DEALERS
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

LEGAL BASIS/
SUBJECT MATTER
(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

LEGAL BASIS/
SUBJECT MATTER
(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
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

LEGAL BASIS/
SUBJECT MATTER
(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

LEGAL BASIS/
SUBJECT MATTER
(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

LEGAL BASIS/
SUBJECT MATTER
(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.
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

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

ON UNDERWRITING
REQUIREMENTS

FAILURE TO SECURE
APPROVAL OF
UNDERWRITING
AGREEMENT

NON-SUBMISSION OF
DULY NOTARIZED AND
EXECUTED COPY OF UA

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS
MATERIAL DEFICIENCY

whichever is higher

whichever is higher

whichever is higher
10,000 or 1/10 of 1% of the
whichever is higher
20,000 or 1/20 of 1% of the
whichever is higher
30,000 or 1/30 of 1% of the
whichever is higher

OF SRC RULE 68

10,000 20,000 30,000
Section 14.B of the Omnibus
Rules; Section 16 of the
Investment Houses Law

SEC FORM IH-14 AR
(ANNUAL REPORT)

83

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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);
Houses Law

SEC Form IH-14
SEC FORM IH-14 (QPR-
QUARTERLY PROGRESS
REPORTS WITH ATTACHED
QUARTERLY FINANCIAL
STATEMENTS)

FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION
OTHER VIOLATIONS
IH-14
OTHER VIOLATIONS
RELATING TO THE
QUARTERLY FINANCIAL
STATEMENTS




Rules;

Houses Law

SEC FORM IHU-A
FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION

84

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SEC Form IHU-A OTHER VIOLATIONS
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

10,000 Plus
100/day of delay
30,000 Plus
200/day of delay
50,000 Plus
300/day of delay
SRC Rule 30.2-6

SEC Form BD 30.2 QCR
FAILURE TO FILE
QUARTERLY COMPLIANCE
REPORT

10,000
Plus 100/day
30,000
50,000
85

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

10,000
30,000
50,000

STATEMENTS

LATE-FILING


NON-FILING

STATEMENTS
1,000 2,000 4,000

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
computed

Total fine plus
Computed
Section 141 of CCP


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
Total fine plus
computed
Total fine plus
Computed
86

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
amended

MANUAL

LATE-FILING

10,000 plus
100 daily

n/a

n/a
NON-FILING

25,000

n/a

n/a
Governance

MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000 plus 100 daily
penalty
Suspension of CA
Governance

SECRETARY ON THE
ATTENDANCE OF DIRECTORS
TO MEETING

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA
Governance
COMPLIANCE OFFICERS ON
THE EXTENT OF COMPLIANCE
WITH MANUAL ON
CORPORATE GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA
87

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

OTHER REQUIREMENTS,
GOVERNANCE

NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

10,000

20,000

Suspension of CA

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 3.A.vi of the Omnibus

VIOLATION OF
INTERLOCKING DIRECTORS
AND OFFICERS

Section 5 of the Omnibus Rules;
Houses Law

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

Houses Law

RULE ON INITIAL PUBLIC
OFFERING DISTRIBUTION
PROCESS

THE DISTRIBUTION
REQUIREMENTS




88

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
ARMS 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

RULE ON UNDERWRITING
COMMITMENT

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

Section 11. B of the Omnibus
Rules
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:

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

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

89

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

underwriting;
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

underwriting;
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

NON-COMPLIANCE WITH
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

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

NON-COMPLIANCE WITH
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


FEE-BASED INCOME
REQUIREMENT

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


CAPITAL ADEQUACY
REQUIREMENTS
CAPITAL ADEQUACY
REQUIREMENTS
SINGLE BORROWERS
LIMIT (SBL)
NETWORTH TO RISK-
ASSETS RATIO

91

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

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


RULE ON STOCKBROKERAGE
OR DEALERSHIP FUNCTIONS

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


ACCREDITATION
OF EXTERNAL AUDITOR
AUDITOR WITHOUT A
GROUP B ACREDITATION

50,000

100,000

200,000

92

LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Philippines (CCP)

CORPORATION
CCP

of this Scale)

of this Scale)

of this Scale)

(11) SELF REGULATORY ORGANIZATIONS, EXCHANGES
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 32 VIOLATION OF THE
PROHIBITION ON THE USE
OF UNREGISTERED
EXCHANGE; FAILURE TO
RENEW LICENSE

100,000 200,000 300,000

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
AUDITED FINANCIAL
STATEMENTS
LATE-FILING

and issued and outstanding
shares or 50,000, whichever is
higher

shares or 100,000,
whichever is higher
plus
shares or 200,000,
whichever is higher
plus
93

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
NON-FILING

or 200,000, whichever is
higher

shares or 300,000,
whichever is higher
shares or 400,000,
whichever is higher

SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

MATERIAL DEFICIENCY

whichever is higher
1

whichever is higher
1
whichever is higher
1

10,000 or 1/10 of 1% of the
whichever is higher
1

20,000 or 1/20 of 1% of the
whichever is higher
1

30,000 or 1/30 of 1% of the
whichever is higher
1

OF SRC RULE 68

10,000 20,000 30,000

STATEMENTS

LATE FILING


NON-FILING

STATEMENTS
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
1,000/day of delay
50,000 Plus 1,500/day
of delay

94

LEGAL BASIS/
SUJBECT REPORT
(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 1,000/day of delay

50,000

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

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
computed

Total fine plus
Computed
95

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 141 of CCP


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

Total fine plus
computed
Total fine plus
Computed
amended

MANUAL

LATE-FILING

10,000 plus
100 daily

n/a

n/a
NON-FILING

25,000

n/a

n/a
Governance

MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000 plus 100 daily penalty 30,000 plus 100 daily
penalty
Suspension of CA
Governance

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

96

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SECRETARY ON THE
TO MEETING

NON-FILING

25,000 plus 100 daily penalty 30,000 plus 100 daily
penalty
Suspension of CA
Governance
WITH MANUAL ON

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA

OTHER REQUIREMENTS,
GOVERNANCE
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

10,000

20,000

Suspension of CA

11.3. OPERATIONAL PRUDENTIAL AND OTHER REQUIREMENTS
(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

(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
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

P100/day of delay
P100/day of delay
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

500/day of delay
1,000/day of delay
50,000 Plus 1,500/day of
delay

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)
COMMISSIONS 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



ACCREDITATION
OF EXTERNAL AUDITOR

AUDITOR WITHOUT A
GROUP B ACREDITATION

50,000

100,000

200,000

Philippines (CCP)
CORPORATION
CCP

of this Scale)

of this Scale)

of this Scale)

102

(12) CLEARING AGENCIES

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

LEGAL BASIS/
SUJBECT REPORT
(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

ANNUAL AUDITED
FINANCIAL STATEMENTS




SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

MATERIAL DEFICIENCY

whichever is higher
1

whichever is higher
1

30,000 per AFS or 3,000
whichever is higher
1

10,000 or 1/10 of 1% of the
whichever is higher
1

20,000 or 1/20 of 1% of the
whichever is higher
1

30,000 or 1/30 of 1% of
the amount of
is higher
1
103

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
OF SRC RULE 68

10,000 20,000 30,000

STATEMENTS

LATE FILING


NON-FILING

STATEMENTS

1,000 2,000 4,000
SRC Rule 42.1(d)

SEC Form 42-CA
FAILURE TO FILE
AMENDMENT FORM FOR
CLEARING AGENCIES




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

Total fine plus
Computed
104

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 141 of CCP


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

Total fine plus
computed
Total fine plus
Computed
Governance
MANUAL ON CORPORATE
GOVERNANCE
LATE-FILING 10,000 plus
100 daily
n/a n/a

NON-FILING 25,000
n/a n/a
Governance
SECRETARY ON THE
TO MEETING
LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING 25,000
30,000
Suspension of CA
Governance
LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

105

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
WITH MANUAL ON

NON-FILING

25,000
30,000
Suspension of CA
OTHER REQUIREMENTS,
GOVERNANCE
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

10,000

20,000

Suspension of CA

LEGAL BASIS/
SUJBECT REQUIREMENT
(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


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




ACCREDITATION
OF EXTERNAL AUDITOR

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)

Philippines (CCP)
CORPORATION

CCP

of this Scale)

of this Scale)

of this Scale)

(13) ALTERNATIVE TRADING SYSTEMS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 37 of the SRC; Section II of
the ATS Rules
VIOLATION OF
REGISTRATION
REQUIREMENT OF ATS
100,000 150,000 200,000

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 68
LATE-FILING

and issued and outstanding
shares or 50,000, whichever is
higher
plus
total issued and
outstanding shares or
200,000, whichever is
higher
107

LEGAL BASIS/
SUJBECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
plus
NON-FILING

or 200,000, whichever is
higher
total issued and
outstanding shares or
400,000, whichever is
higher
Plus 1,000 per day of
delay
SRC Rule 68

MATERIAL DEFICIENCY

whichever is higher
1

whichever is higher
1

30,000 per AFS or 3,000
whichever is higher
1

MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000 or 1/10 of 1% of the
whichever is higher
1

20,000 or 1/20 of 1% of the
whichever is higher
1

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

OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

10,000 20,000 30,000

STATEMENTS

LATE FILING


NON-FILING

STATEMENTS
1,000 2,000 4,000
108

LEGAL BASIS/
SUJBECT REPORT
(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
10,000 basic fine
10,000 basic fine

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
on ATS

Late Amendment or Non-
Amendment of
Registration Statement

10,000 basic fine
plus 1,000/day of delay
10,000 basic fine
10,000 basic fine
on ATS
Late or Non-Approval of
Investors
Training Program
10,000 basic fine
10,000 basic fine

10,000 basic fine
on ATS

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
ACCREDITATION
OF EXTERNAL AUDITOR

SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
50,000

100,000

200,000

109

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
ACREDITATION

Philippines (CCP)

CORPORATION

CCP

of this Scale)

of this Scale)

of this Scale)

(14) TRANSFER AGENTS

LEGAL BASIS/SUBJECT REPORT VIOLATION FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 36-4.1
(SEC Form 36-TA)
FAILURE TO REGISTER AS
TRANSFER AGENT

50,000

75,000 100,000

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 36.4.2(a)

ANNUAL REPORT
SEC Form 36-AR
LATEOR NON-FILING
FILING OF ANNUAL
REPORT
10,000

30,000

50,000
SRC Rule 36.4.2(a)


ANNUAL AUDITED
FINANCIAL STATEMENTS
10,000

30,000

50,000
110

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 68

MATERIAL DEFICIENCY

whichever is higher

whichever is higher
40,000 per AFS or 3,000
whichever is higher
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION

10,000 or 1/10 of 1% of the
whichever is higher
1

20,000 or 1/20 of 1% of the
whichever is higher
1

40,000 or 1/30 of 1% of
the amount of
is higher
1
OTHER NON-
COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

10,000 20,000 30,000

STATEMENTS

LATE-FILING




NON-FILING

MATERIAL DEFICIENCY
OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS

1,000 2,000 4,000

Up to P100,000: 500
Total fine plus

Total fine plus
Computed
111

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

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

Total fine plus
computed
Total fine plus
Computed
amended

MANUAL
LATE-FILING

10,000 plus
100 daily

n/a

n/a
NON-FILING

n/a

n/a
Governance

MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA
Governance

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily
Suspension of CA

112

LEGAL BASIS/
SUBJECT REPORT
(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
30,000
Suspension of CA
Governance

MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA

NON-FILING

25,000
30,000
Suspension of CA

OTHER REQUIREMENTS,
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

10,000

20,000

Suspension of CA

SRC Rule 36.4.1(d) FAILURE TO REPORT
AMENDMENTS TO SEC
FORM 36-TA
10,000

30,000

delay

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

LEGAL BASIS/
SUBJECT REPORT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 36-4.2(e) FAILURE TO SUBMIT
OTHER REPORTS
10,000

30,000

50,000
LEGAL BASIS/
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 36-4.2(c) FAILURE TO COMPLY
WITH PERIODIC
REPORTING TO ISSUER
REQUIREMENT

10,000

30,000

50,000
SRC Rule 36-4.2(d) FAILURE TO MAINTAIN A
COMPLAINT LOG
10,000

30,000

50,000

SRC Rule 364.3 FAILURE TO MAINTAIN
REQUIRED RECORDS
10,000

30,000

50,000

ACCREDITATION
OF EXTERNAL AUDITOR

SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION

25,000 50,000

100,000

Philippines (CCP)

CORPORATION

CCP

of this Scale)

of this Scale)

of this Scale)

114

(15) OTHER PROHIBITED PRACTICES AND SCHEMES UNDER THE SECURITIES REGULATION CODE
LEGAL BASIS/
REQUIREMENTS
(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/Br
oker Dealer of Securities:
200,000.00 + 100% of the
avoided
Associated Person or
Salesman: 75,000.00
Associated Person or Salesman:
100,000.00
Salesman: 150,000.00
Sec. 26, SRC Fraudulent Transactions Individual/Corporation/Broker
Dealer of Securities:
100,000.00 + 100% of the
avoided

losses avoided
200,000.00 + 100% of the
avoided
Salesman: 75,000.00
100,000.00
Sec. 27, SRC Insiders Trading Individual/Corporation/Broker
Dealer of Securities:
100,000.00 + 100% of the
avoided

losses avoided
200,000.00 + 300% of the
avoided
Salesman: 75,000.00

100,000.00
115

LEGAL BASIS/
REQUIREMENTS
(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
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

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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: 50,000
Group B: 25,000
Group C: 10,000

Group A: 100,000 and
suspension of accreditation

Group B: 50,000
and suspension of
accreditation

Group C: 20,000
and suspension of
accreditation

removal of accreditation

Group B: 100,000
and removal of accreditation

Group C: 40,000


REPORT ON MATERIAL CHANGES IN
THE FIRMS OR THE ACCOUNTING
OFFICE STRUCTURE,
COMPOSITION, QUALITY
CONTROLS

FAILURE TO TIMELY FILE
THE REPORT
Group A: 25,000
Group B: 10,000
Group C: 5,000

Group A: 50,000
Group B: 20,000
Group C: 10,000


Group B: 40,000 and

Group C: 20,000 and

16.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS
LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

COMPLIANCE WITH AUDITING
STANDARDS, CODE OF ETHICS AND
OTHER REQUIREMENTS UNDER
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 B: 50,000
and suspension of

Group B: 100,000
118

LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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

the Code of Ethics for
Professional Accountants
including independence
requirements

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


Group B: 50,000
and suspension of
accreditation

Group C: 20,000
and suspension of
accreditation


Group B: 100,000

Group C: 40,000

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

Group A: 50,000
Group B: 25,000
Group C: 10,000
Plus PhP 100 daily fine until
compliance

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

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


Group B: 50,000
and suspension of
accreditation

Group B: 100,000

119

LEGAL BASIS/
REQUIREMENTS
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Group C: 20,000
and suspension of
accreditation

Group C: 40,000

other requirements of
and other Guidelines
issued by the
Commission
Group A: 50,000
Group B: 25,000
Group C: 10,000

Group A: 50,000
Group B: 20,000
Group C: 10,000


Group B: 50,000
and suspension of
accreditation

Group C: 20,000
and suspension of
accreditation

17. CREDIT RATING AGENCIES

LEGAL BASIS/
REQUIREMENT
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 12 FAILURE TO SUBMIT THE
PRESCRIBED REPORTS
UNDER THE RULE
25,000 50,000 100,000
and suspension of
accreditation

LEGAL BASIS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
20,000 plus 100 per
day of delay
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

LEGAL BASIS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
1/100 of 1% of the
amount of
consideration
1/100 of 1% of the
amount of consideration
1/100 of 1% of the
amount of consideration
Failure of any public
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
1/100 of 1% of the
property dividend
1/100 of 1% of the
property dividend
122

LEGAL BASIS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 62 of Corporation Code;
Section 68 of the SRC;
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
50,000 and suspension of
accreditation

accreditation

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

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

MATERIAL
THE ANNUAL REPORT

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

MATERIAL
ANY APPRAISAL REPORT
ISSUED BY THE
COMPANY

50,000

accreditation

200,000 and removal of
accreditation

123

LEGAL BASIS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 62 of Corporation Code;
Section 68 of the SRC;
MC

FAILURE TO TIMELY PAY
THE PRESCRIBED
ANNUAL FEE

day of delay
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

accreditation

200,000 and removal of
accreditation

19. OTHER VIOLATIONS

LEGAL BASIS

(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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 TINS (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

SEC

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