Professional Documents
Culture Documents
1.1REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines (CCP)
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fines
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
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
NON-FILING
LEGAL BASIS/
SUBJECT REPORT
Section 68 of the Securities
Regulation Code (SRC); SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
The basis of penalty is the
"Total Assets" reported in the
Latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
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
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
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
MATERIAL
MISSTATEMENT OR
MISREPRE-SENTATION
THIRD OFFENSE
(Amounts in Pesos)
The basis of penalty is the
"Total Assets" reported in
the Latest Financial
Statements
Up to 100,000: 2,000
100,001 to 500,000: 4,000
500,001 to 5,000,000:
8,000
5,000,001 to 10,000,000:
12,,000
Above 10,000,000: 16,000
An amount based on the
above scale or 4/10 of 1%
of the amount of
misstatement, whichever is
higher
The basis of penalty is the
"Total Assets" reported in
the Latest Financial
Statements
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
1.2. OTHER REQUIREMENTS (These are also applicable to corporations with secondary license and public companies)
LEGAL BASIS/
REQUIREMENT
Section 16 of CCP
CORPORATE NAME
Section 16 of CCP
PRINCIPAL OFFICE ADDRESS
Section 16 of CCP
BOARD OF DIRECTORS
Section 16 of CCP
PURPOSE
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Changes in the
corporate name without
amendment of the
Articles of Incorporation
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
10,000
10,000
10,000
10,000
LEGAL BASIS/
REQUIREMENT
VIOLATION
FIRST OFFENSE
(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 or a
Stockholder
5,000
5,000
5,000
5,000
5,000
5,000
n/a
n/a
1,000
n/a
n/a
5,000
5,000
5,000
Election of a Secretary
who is not a Filipino
Section 43 of CCP
EXCESS IN RETAINED EARNINGS
Section 46 of CCP
BY-LAWS
Non-Registration
10,000
Late- Registration
Section 48 of CCP
FISCAL YEAR
LEGAL BASIS/
REQUIREMENT
Section 48 of CCP
DATE OF ANNUAL MEETING
VIOLATION
Section 50 of CCP
NON-HOLDING OF MEETING
Non-holding of Meeting
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.
Section 74 of CCP
STOCK AND TRANSFER BOOK
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
5,000
5,000
5,000
5,000
5,000
5,000
n/a
n/a
Reprimand
1,000 plus
100 per day of delay
1,000 plus
100 per day of delay
2,000
n/a
n/a
2.1REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines (CCP)
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
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
NON-FILING
LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC; SRC Rule 68, as
amended
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
The basis of penalty is the
"Total Assets" reported in the
Latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
The basis of penalty is the
"Total Assets" reported in the
Latest Financial Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
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
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
MATERIAL
MISSTATEMENT/
MISREPRESEN-TATION
THIRD OFFENSE
(Amounts in Pesos)
The basis of penalty is the
"Total Assets" reported in
the Latest Financial
Statements
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
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
VIOLATION
CHANGES IN THE
CORPORATE NAME
WITHOUT AMENDMENT
OF THE ARTICLES OF
INCORPORATION
Section 16 of CCP
PRINCIPAL OFFICE ADDRESS
CHANGES IN THE
PRINCIPAL OFFICE
ADDRESS WITHOUT
AMENDMENT OF THE
ARTICLES OF
INCORPORATION
Section 16 of CCP
BOARD OF TRUSTEES
INCREASE IN NUMBER
OF BOARD OF TRUSTEES
WITHOUT AMENDMENT
OF THE ARTICLES OF
INCORPORATION
Section 16 of CCP
PURPOSE
CHANGES IN CORPORATE
PURPOSE WITHOUT
AMENDMENT OF THE
ARTICLES OF
INCORPORATION
Section 25 of CCP
ELECTION OF PRESIDENT AS
SECRETARY AND/ OR TREASURER
ELECTION OF PRESIDENT
AS SECRETARY AND/ OR
TREASURER
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
5,000
5,000
2,500
2,500
2,500
LEGAL BASIS/
REQUIREMENT
Section 25 of CCP
ELECTION OF A PRESIDENT WHO
IS NOT A MEMBER OF THE
BOARD
VIOLATION
ELECTION OF A
PRESIDENT WHO IS NOT
A MEMBER OF THE
BOARD OF TRUSTEES
Section 25 of CCP
ELECTION OF A SECRETARY WHO
IS NOT A FILIPINO CITIZEN OR A
RESIDENT OF THE PHILIPPINES
Section 46 of CCP
BY-LAWS
Section 46 of CCP
BY-LAWS
Section 48 of CCP
FISCAL YEAR
ELECTION OF A
SECRETARY WHO IS NOT
A FILIPINO
Section 48 of CCP
DATE OF ANNUAL MEETING
CHANGES IN THE
ANNUAL DATE OF
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
NON-HOLDING OF
MEETING
LATE REGISTRATION OF
MEMBERSHIP BOOK
Section 50 of CCP
NON-HOLDING OF MEETING
Section 6(d) Guidelines on the
Imposition of Fines or Penalties
for Non-Compliance with the
Reportorial Requirements - 2002
(Section 74)
MEMBERSHIP BOOK
NON-REGISTRATION
LATE- REGISTRATION
CHANGES IN FISCAL
YEAR WITHOUT
AMENDMENT OF THE
BY-LAWS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
5,000
n/a
n/a
500
n/a
n/a
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
1,000
n/a
n/a
VIOLATION
LATE FILING
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
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
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
NON-FILING
10
LEGAL BASIS/
SUBJECT REPORT
Sec. 68 of the SRC; SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT/
MISREPRESENTATION
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
THIRD OFFENSE
(Amounts in Pesos)
The basis of the penalty is
the Total Assets
reported in the latest
Financial Statements
Up to 100,000: 500
100,001 to 500,000: 1,000
500,001 to 5,000,000: 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
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
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
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
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
11
VIOLATION
LATE FILING
NON-FILING
LATE FILING OF PETITION
(to change, substitute or
add a Resident Agent)
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
1,250
2,500
5,000
2,500
Basic fine: 10,000.00
Additional: 1,000 per month of
delay
5,000
Basic fine: 10,000.00
Additional:: 1,000 per month of
delay
10,000
Basic fine: 10,000.00
Additional:: 1,000 per
month of delay
n/a
n/a
SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT
Section 126 of CCP
SECURITIES DEPOSIT
Section 126 of CCP
SECURITIES DEPOSIT
INADEQUATE OR LATE
ADDITIONAL SECURITIES
DEPOSIT
LATE SUBSTITUTION OF
MATURED SECURITIES
DEPOSITED (within 30
days from the date of
maturity)
12
LEGAL BASIS/
REQUIREMENT
Section 130 of CCP
AMENDED ARTICLES OF
INCORPORATION AND BY-LAWS
OF FOREIGN CORPORATIONS
LICENSED TO DO BUSINESS IN THE
PHILIPPINES
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
NON-FILING OR LATE
FILING
Submission is within sixty
(60) days after the
amendment becomes
effective.
CHANGES IN THE
CORPORATE NAME,
PURPOSE AND ADDITION
OF PURPOSES WITHOUT
FILING A PETITION TO
AMEND LICENSE
NON-FILING OR LATE
FILING OF THE ARTICLES
OF MERGER OR
WITHDRAWAL OF
LICENSE
13
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
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
NON-FILING
14
LEGAL BASIS/
SUBJECT REPORT
Section 68 of the SRC; SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT/
MISREPRESENTATION
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
THIRD OFFENSE
(Amounts in Pesos)
The basis of the penalty is
the Total Assets
reported in the latest
Financial Statements
Up to 100,000: 500
100,001 to 500,000: 1,000
500,001 to 5,000,000: 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
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
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
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
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
15
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
1,000
SECOND OFFENSE
(Amounts in Pesos)
1,000
THIRD OFFENSE
(Amounts in Pesos)
1,000
NON-FILING
2,000
2,000
2,000
SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT
NON-FILING OR LATE
FILING
CHANGES IN THE
CORPORATE NAME,
PURPOSE AND ADDITION
OF PURPOSES WITHOUT
FILING A PETITION TO
AMEND LICENSE
16
VIOLATION
LATE FILING
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
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
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
NON-FILING
17
LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC;
SRC Rule 68
ANNUAL FINANCIAL STATEMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
Up to 100,000 : 500
100,001 to 500,000 : 1,000
500,001 to 5,000,000 : 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
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
MATERIAL
MISSTATEMENT/
MISREPRESENTATION
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
MATERIAL DEFICIENCY
THIRD OFFENSE
(Amounts in Pesos)
The basis of the penalty is
the Total Assets reported
in the latest Financial
Statements
Up to 100,000 : 2,000
100,001 to 500,000 : 4,000
500,001 to 5,000,000 : 8,000
5,000,001 to 10,000,000:
12,000
Above 10,000,000: 16,000
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
18
VIOLATION
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)
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
LATE FILING
1,250
2,500
5,000
NON-FILING
2,500
5,000
10,000
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
PURPOSE
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
19
LEGAL BASIS/
SUBJECT REPORT
GENERAL INFORMATION SHEETS
AND
ANNUAL FINANCIAL STATEMENTS
VIOLATION
NON-FILING
Section 68 of SRC;
SRC Rule 68
FIRST OFFENSE
(Amounts in Pesos)
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
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
MATERIAL DEFICIENCY
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
20
LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC;
SRC Rule 68
VIOLATION
MATERIAL
MISSTATEMENT/
MISREPRESENTATION
FIRST OFFENSE
(Amounts in Pesos)
An amount based on the above
scale or 1/10 of 1% of the
amount of misstatement,
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
An amount based on the
above scale or 2/10 of 1% of
the amount of misstatement,
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
An amount based on the
above scale or 4/10 of 1% of
the amount of
misstatement, whichever is
higher
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
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
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
21
LEGAL BASIS/
REQUIREMENT
Memorandum Circular No. 15 Series
of 2006; Article 58 &59 of the
Omnibus Investments Code
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
LATE FILING
1,250
2,500
5,000
NON-FILING
2,500
5,000
10,000
22
(4) FOUNDATIONS
Department in Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
4.1. REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines (CCP)
VIOLATION
LATE FILING
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
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
NON-FILING
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
MATERIAL DEFICIENCY
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
23
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
SECOND OFFENSE
(Amounts in Pesos)
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
LATE FILING
2,500
5,000
10,000
NON-FILING
5,000
10,000
20,000
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
MATERIAL
MISSTATEMENT/
MISREPRESENTATION
THIRD OFFENSE
(Amounts in Pesos)
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
Up to 100,000: 800
100,001 to 500,000: 1,200
24
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
SECOND OFFENSE
(Amounts in Pesos)
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
THIRD OFFENSE
(Amounts in Pesos)
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
5,000
5,000
VIOLATION
Changes in the corporate
name without
amendment of the
Articles of Incorporation
Section 16 of CCP
PRINCIPAL OFFICE ADDRESS
Section 16 of CCP
BOARD OF TRUSTEES
Increase in number of
Board of Trustees
without amendment of
the Articles of
Incorporation
Section 16 of CCP
Changes in corporate
purpose without
amendment of the
Articles of Incorporation
PURPOSE
25
LEGAL BASIS/
REQUIREMENT
Section 25 of CCP
ELECTION OF PRESIDENT AS
SECRETARY AND/ OR TREASURER
Section 25 of CCP
ELECTION OF A PRESIDENT WHO
IS NOT A MEMBER OF THE
BOARD OR A STOCKHOLDER
Section 25 of CCP
VIOLATION
Election of President as
Secretary and/or
Treasurer
Election of a President
who is not a member of
the Board of Trustees
Election of a Secretary
who is not a Filipino
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
n/a
n/a
500
n/a
n/a
2,500
2,500
2,500
2,500
2,500
2,500
NON-REGISTRATION OF
BY-LAWS
Section 46 of CCP
BY-LAWS
LATE REGISTRATION OF
BY-LAWS
Section 48 of CCP
CHANGES IN FISCAL
YEAR WITHOUT
AMENDMENT OF THE
BY-LAWS
FISCAL YEAR
Section 48 of CCP
DATE OF ANNUAL MEETING
CHANGES IN THE
ANNUAL DATE OF
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
26
LEGAL BASIS/
REQUIREMENT
Section 50 of CCP
VIOLATION
NON-HOLDING OF
MEETING
FIRST OFFENSE
(Amounts in Pesos)
2,500
SECOND OFFENSE
(Amounts in Pesos)
2,500
THIRD OFFENSE
(Amounts in Pesos)
2,500
1,000
n/a
n/a
FIRST OFFENSE
(Amounts in Pesos)
50,000
SECOND OFFENSE
(Amounts in Pesos)
n.a.
THIRD OFFENSE
(Amounts in Pesos)
n.a.
n.a.
n.a.
NON-HOLDING OF MEETING
MEMBERSHIP BOOK
LATE FILING OF
MEMBERSHIP BOOK
VIOLATION
Engaging in Lending
Activities without
Registration as
Corporation
Operating a Lending
Company Head Office
without a Certificate of
Authority from SEC
27
5.2.
Operating a Branch,
Extension, Satellite or
Unit Office without a
Certificate of Authority
from SEC
Suspension of CA
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus
100 daily
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
NON-FILING
Suspension of CA
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION IN
THE AFS
P30,000 or 1/30 of 1% of
the amount of
misstatement
MATERIAL DEFICIENCY
10,000
20,000
30,000
REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Sec. 9 of LCRA of 2007; Rule 8(a)
of its IRR
AUDITED FINANCIAL
STATEMENTS
Sections 68 and 54 of the
Securities Regulation Code
ANNUAL FINANCIAL
STATEMENTS
VIOLATION
LATE-FILING
28
LEGAL BASIS/
SUBJECT REPORT
Sec. 9 of LCRA of 2007; Rule 8(a)
of its IRR
VIOLATION
LATE-FILING
FIRST OFFENSE
(Amounts in Pesos)
5,000 plus
100 daily
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
Suspension of CA
INTERIM FINANCIAL
STATEMENTS
NON-FILING
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
MATERIAL DEFICIENCY
P10,000
P20,000
P30,000
LATE-FILING
10,000 plus
100 daily penalty
15,000 plus
100 daily penalty
Suspension of CA
NON-FILING
Suspension of CA
LATE FILING
INTERIM FINANCIAL
STATEMENTS
SECOND OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
29
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
NON-FILING
FIRST 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
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
Rule 17.1(2)(c) of the Amended
IRR of SRC
LATE FILING
10,000 plus
100 daily penalty
15,000 plus
100 daily penalty
Suspension of CA
ANNUAL INFORMATION
STATEMENT FOR ISSUERS OF
COMMERCIAL PAPERS
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
5,000 plus
100 daily
10,000 plus
100 daily
Suspension of CA
Suspension of CA
15,000
20,000
LATE FILING
NON-FILING
INCOMPLETE REPORT
30
LEGAL BASIS/
SUBJECT REPORT
SEC MC no. 2, S. of 2010
REVISED ANTI-MONEY
LAUNDERING OPERATING
MANUAL
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily penalty
SECOND OFFENSE
(Amounts in Pesos)
n.a.
THIRD OFFENSE
(Amounts in Pesos)
n.a
20,000 plus
100 daily penalty
n.a.
n.a.
2,000
n/a
n/a
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
10,000 plus
100 daily penalty
20,000 plus
100 daily penalty
Suspension of CA
25,000 plus
100 daily penalty
20,000 plus 100 per day of
continuing violation
30,000 plus
100 daily penalty
25,000 plus 100 per day of
continuing violation
Suspension of CA
LATE FILING
NON-FILING
Sec. 74 of CCP
STOCK AND TRANSFER BOOK
LATE REGISTRATION
LATE PAYMENT OF
ANNUAL FEE
ANNUAL FEE
NON-PAYMENT OF
ANNUAL FEE
Failure to furnish a
debtor with a disclosure
statement that is
compliant with the
requirements of BSP
Circular No. 730 dated
July 20, 2011
31
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
25,000
50,000
100,000
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
investment in real estate in
excess of 25% of the companys
networth
Suspension of CA
BREACH OF LIMIT
Suspension of CA
BREACH OF LIMIT
Suspension of CA
ACCREDITATION
OF EXTERNAL AUDITOR
32
LEGAL BASIS/
SUBJECT REPORT
Sec. 9 of LCRA of 2007; Rule 3(f)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
MISREPRESENTATION OR
MISSTATEMENT
20,000
P30,000
Suspension of CA
Suspension of CA
33
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
P 100,000
SECOND OFFENSE
(Amounts in Pesos)
n.a.
THIRD OFFENSE
(Amounts in Pesos)
n.a.
n/a
n/a
Engaging in Financing
Activities without
Certificate of Authority
Operating a Financing
Company Head Office
without a Certificate of
Authority from SEC
10,000 plus
100 per day
Operating a Financing
Company Branch office
without a Certificate of
Authority from SEC
10,000 plus
100 per day
LATE-FILING
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus 100 per day
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus 100 per day
THIRD OFFENSE
(Amounts in Pesos)
30,000 plus 100 per day
NON-FILING
VIOLATION
34
LEGAL BASIS/
SUBJECT REPORT
Sections 54 and 68 of SRC;
SRC Rule 68
AUDITED FINANCIAL STATEMENTS
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
10,000 per AFS or 1,000 per
material deficiency,
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
20,000 per AFS or 2,000 per
material deficiency,
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
40,000 per AFS or 3,000 per
material deficiency,
whichever is higher
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000
20,000
30,000
LATE-FILING
NON-FILING
1,000
2,000
4,000
LATE FILING
NON-FILING
MATERIAL DEFICIENCY
OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS
Section 13(a), IRR
QUARTERLY FINANCIAL
STATEMENTS
(up to December 2007 only)
35
LEGAL BASIS/
SUBJECT REPORT
Sections 54 and 68 of SRC;
SRC Rule 68
QUARTERLY FINANCIAL
STATEMENTS
(up to December 2007 only)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT OR
MATERIAL
MISREPRESENTATION
LATE FILING
NON-FILING
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT OR
MATERIAL
MISREPRESENTATION
10,000
20,000
30,000
LATE FILING
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:
36
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
3,500
Above 10,000,000: 5,000
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
n/a
n/a
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
Anti-Money Laundering Act, as
amended
LATE-FILING
10,000 plus
100 daily
ANTI-MONEY LAUNDERING
MANUAL
NON-FILING
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
Suspension of CA
37
LEGAL BASIS/
SUBJECT REPORT
Revised Code on Corporate
Governance
CERTIFICATION BY THE
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE
Revised Code on Corporate
Governance; Section 54 of SRC
VIOLATION
LATE-FILING
NON-FILING
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus
100 daily
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
Suspension of CA
10,000
20,000
Suspension of CA
OTHER REQUIREMENTS,
INCLUDING COMPLIANCE WITH
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
Sec. 17.1 of SRC; SRC Rule 17.1.2.C
LATE FILING
ANNUAL INFORMATION
STATEMENT FOR ISSUER OF
COMMERCIAL PAPERS
NON-FILING
INCOMPLETE REPORT
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
LATE REGISTRATION
2,000
n/a
n/a
Sec 74 of CCP
STOCK AND TRANSFER BOOK
38
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
20,000
THIRD OFFENSE
(Amounts in Pesos)
30,000
COMMENCEMENT OF
OPERATIONS
FAILURE TO OPERATE
WITHIN 120 DAYS FROM
GRANT OF CA (MAIN
AND/OR BRANCH OFFICE)
Section 8, IRR
LATE PAYMENT
ANNUAL FEE
NON-PAYMENT
BREACH OF LIMIT
1% of the amount of
investment in real estate in
excess of 25% of the companysnetworth
2% of the amount of
investment in real estate in
excess of 25% of the companys
networth
6% of the amount of
investment in real estate in
excess of the companysnetworth
FUNDS USED IN
FINANCING ACTIVITIES
BELOW THE THRESHOLD
39
LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 9(e), IRR
UNCOLLECTED INTEREST INCOME
SHALL NOT BE RECOGNIZED ON
LOANS AND LEASE RECEIVABLES
THAT REMAIN OUTSTANDING
BEYOND THEIR MATURITY DATE
Section 9(f), IRR
SETTING OF 100% ALLOWANCE
FOR PROBABLE LOSSES IF THE
CRITERIA IS MET
Sections 11, 2(b) & 6(c),IRR
REQUIRED PAID-UP CAPITAL
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
1% of the amount of
uncollected interest income
outstanding beyond maturity
date
SECOND OFFENSE
(Amounts in Pesos)
2% of the amount of
uncollected interest income
outstanding beyond maturity
date
THIRD OFFENSE
(Amounts in Pesos)
6% of the amount of
uncollected interest income
outstanding beyond
maturity date
1% of the amount of
deficiency
6% of the amount of
deficiency
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
6% of the amount of
deficiency
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
100 per day of continuing
violation
INCORRECT RECOGNITION
OF UNCOLLECTED
INCOME
40
LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 68 of SRC; SRC Rule 68
ACCREDITATION OF EXTERNAL
AUDITOR
VIOLATION
FAILURE TO ENGAGE THE
SERVICES OF AN
EXTERNAL AUDITOR W/O
GROUP C OR HIGHER (A
OR B) SEC
ACCREDITATION
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
50,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
(7) ISSUERS OF SECURITIES TO THE PUBLIC (LISTED COMPANIES, ISSUERS OF REGISTERED & UNLISTED SECURITIES, MUTUAL FUNDS,
EXCHANGE TRADED FUNDS) AND PUBLIC COMPANIES
Department in Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
7.1.
REGISTRATION OF SECURITIES
LEGAL BASIS/
REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
41
LEGAL BASIS/
REQUIREMENTS
Sections 7 and 24 of ICA (for
mutual funds);
Section 7 of ETF Rules (for
exchange traded funds)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Selling or distribution of
securities to the public
without prior registration or
permit to sell
Maximum
1,000,000
(amount may be adjusted
depending on mitigating
circumstance present)
[see page no. of Circular]
Maximum
1,000,000
(amount may be adjusted
depending on mitigating
circumstance present)
[see page no. of the Circular]
Maximum
1,000,000
(amount may be adjusted
depending on mitigating
circumstance present)
[see page no. of the Circular]
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000 plus
100 per day of delay
20,000 plus
200 per day of delay
60,000 plus
600 per day of delay
REGISTRATION OF SECURITIES
Offering for sale of
PRIOR TO PUBLIC OFFERING AND
securities to the public
SALE
without prior registration or
permit to sell
7.2.
VIOLATION
42
LEGAL BASIS/
REQUIREMENTS
VIOLATION
NON-COMPLIANCE WITH
THE DISCLOSURE
REQUIREMENTS UNDER
SRC RULE 10.1
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,500 plus
100 per day of delay
21,000 plus
200 per day of delay
63,000 plus
600 per day of delay
43
VIOLATION
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
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
FAILURE TO TIMELY
PUBLISH THE NOTICE OF
AMENDMENTS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
21,000 plus
200 per day of delay
63,000 plus
600 per day of delay
44
VIOLATION
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
LATE FILING OF
CURRENT REPORT
(SEC FORM 17-C)
NON-FILING OF
CURRENT REPORT
(SEC FORM 17-C)
LATE FILING OF
QUARTERLY REPORT
(SEC FORM 17-Q)
NON-FILING OF
QUARTERLY REPORT
(SEC FORM 17-Q)
CURRENT REPORT
Section 17.1;
SRC Rule 17.1 (1)(A)(ii)
FIRST OFFENSE
(Amounts in Pesos)
QUARTERLY REPORT
45
LEGAL BASIS/
REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
MATERIAL DEFICIENCY IN
THE INTERIM FS
MATERIAL MISSTATEMENT
OR MISREPRESENTATION
IN THE INTERIM FS
OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68
10,000
20,000
30,000
INCOMPLETE
QUARTERLY REPORT
(SEC FORM 17-Q)
Section 17.1;
SRC Rule 17.1 (1)(A)(i)
LATE FILING OF
ANNUAL REPORT
(SEC FORM 17-A)
NON-FILING OF
ANNUAL REPORT
(SEC FORM 17-A)
ANNUAL REPORT
46
LEGAL BASIS/
REPORT
VIOLATION
INCOMPLETE
ANNUAL REPORT
(SEC FORM 17-A)
MATERIAL DEFICIENCY
MATERIAL MISSTATEMENT
OR MISREPRESENTATION
OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68
Section 20 [in relation with
17.1(b)] SRC Rule 20
INFORMATION STATEMENT
LATE FILING OF
INFORMATION
STATEMENT
(SEC FORM 20-IS)
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000 or
20,000 or
30,000 or
P10,000
20,000
30,000
47
LEGAL BASIS/
REPORT
VIOLATION
THIRD OFFENSE
(Amounts in Pesos)
INCOMPLETE
INFORMATION
STATEMENT
(SEC FORM 20-IS)
15,000 plus
100 per day of delay
25,000.00 plus
200 per day of delay
105,000 plus
500 per day of continuing
violation
210,000 plus
1,000 per day of continuing
violation
SECOND OFFENSE
(Amounts in Pesos)
NON- FILING OF
INFORMATION1
STATEMENT
(SEC FORM 20-IS)
Section 54 of SRC
FIRST OFFENSE
(Amounts in Pesos)
MISREPRESENTATION OR
MISLEADING STATEMENTS
IN ANY REPORTS
REQUIRED TO BE
SUBMITTED TO THE
COMMISSION
50,000.00 plus
600 per day of delay
420,000 plus
2,000 per day of continuing
violation
48
7.5. REPORTORIAL AND OTHER REQUIREMENTS FOR BENEFICIAL OWNERS AND ACQUIRERS OF EQUITY SECURITIES
LEGAL BASIS/
REPORT
Section 18 of SRC; SRC Rule 18
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
NON-FILING OF REPORT
REPORTS BY 5% OR MORE
HOLDERS OF EQUITY SECURITIES
(SEC FORM 18-A/18-AS)
INCOMPLETE REPORT
LATE FILING OF
STATEMENT
NON-FILING OF
STATEMENT
STATEMENT OF BENEFICIAL
OWNERSHIP (SEC FORM 23-A/B)
20,000 plus 300 per day of delay of 30,000 plus 600 per day of
the submission of the amended
delay of the submission of
report
the amended report
49
LEGAL BASIS/
REPORT
VIOLATION
INCOMPLETE STATEMENT
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
20,000 plus 200 per day of delay of 30,000 plus 300 per day of
the submission of the amended
delay of the submission of
report
the amended report
NON-FILING OF TENDER
OFFER REPORT (SEC FORM
19-1)
50
LEGAL BASIS/
REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
INCOMPLETE TENDER
OFFER REPORT
(SEC FORM 19-1)
FAILURE TO CONDUCT A
TENDER OFFER
MISREPRESENTATION OR
MISLEADING STATEMENTS
IN ANY FILINGS REQUIRED
TO BE SUBMITTED TO THE
COMMISSION
105,000 plus
500 per day of continuing
violation
210,000 plus
1,000 per day of continuing
violation
420,000 plus
2,000 per day of continuing
violation
7.6. OTHER REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC AND PUBLIC COMPANIES
LEGAL BASIS/
REQUIREMENTS
Section 38 of SRC; SRC Rule 38
ELECTION OF INDEPENDENT
DIRECTORS
VIOLATION
FAILURE TO ELECT
INDEPENDENT
DIRECTOR(S) OR ELECTION
OF AN UNQUALIFIED
INDEPENDENT DIRECTORS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
50,000 plus
200 per day of continuing
violation
100,000 plus
500 per day of
continuing violation
150,000 plus
1,000 per day of continuing
violation
51
LEGAL BASIS/
REQUIREMENTS
Section 68 of SRC; SRC Rule 68
ACCREDITATION
OF EXTERNAL AUDITOR
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
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
100,000
200,000
400,000
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
DIVIDEND DECLARATIONS
7.7. ADDITIONAL REQUIREMENTS FOR MUTUAL FUNDS AND EXCHANGE TRADED FUNDS
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(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
continuing violation
100,000 plus
600 per day of
continuing violation
150,000 plus
1,800 per day of
continuing violation
Section 9 of ICA
UNAUTHORIZED
AFFILIATIONS OF
DIRECTORS, OFFICERS AND
EMPLOYEES
52,500 plus
300 per day of
continuing violation
105,000 plus
600 per day of
continuing violation
210,000 plus
1,800 per day of
continuing violation
52
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(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
continuing violation
105,000 plus
600 per day of
continuing violation
210,000 plus
1,800 per day of
continuing violation
Section 11 of ICA
UNAUTHORIZED OR
ILLEGAL ACTIVITIES OF
INVESTMENT COMPANIES
(Per illegal activity
/violation)
52,500 plus
300 per day of
continuing violation
105,000 plus
600 per day of
continuing violation
210,000 plus
1,800 per day of
continuing violation
Section 12 of ICA
UNAUTHORIZED CHANGES
IN INVESTMENT POLICY
52,500 plus
300 per day of
continuing violation
105,000 plus
600 per day of
continuing violation
210,000 plus
800 per day of
continuing violation
Section 14 of ICA
UNAUTHORIZED
CONTRACTS OF ADVISERS
AND UNDERWRITERS
52,500 plus
300 per day of
continuing violation
105,000 plus
600 per day of
continuing violation
210,000 plus
800 per day of
continuing violation
VIOLATION OF
REQUIREMENTS ON
DISTRIBUTION,
REDEMPTION, AND
REPURCHASE OF
SECURITIES
52,500 plus
300 per day of
continuing violation
105,000 plus
600 per day of
continuing violation
210,000 plus
800 per day of
continuing violation
Section 26 of ICA
EXCESSIVE PERIODIC
PAYMENT PLAN
25,000 plus
100 per day of
continuing violation
50,000 plus
300 per day of
continuing violation
100,000 plus
600 per day of
continuing violation
10,000 plus
100 per day of
continuing violation
20,000 plus
200 per day of
continuing violation
30,000 plus
400 per day of
continuing violation
53
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(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
continuing violation
105,000 plus
600 per day of
continuing violation
315,000 plus
1,800 per day of
continuing violation
VIOLATION OF RECITED
INVESTMENT OBJECTIVES
AND RESTRICTIONS
25,000 plus
100 per day of
continuing violation
50,000 plus
300 per day of
continuing violation
100,000 plus
600 per day of
continuing violation
NON-DEPOSIT OF SALES
PROCEEDS TO A
CUSTODIAN BANK
10,500 plus
300 per day of
continuing violation
21,000 plus
500 per day of
continuing violation
52,500 plus
600 per day of
continuing violation
REDEMPTION OF ORIGINAL
CAPITAL FOR LESS THAN 12
MONTHS
10,000 plus
100 per day of
continuing violation
20,000 plus
200 per day of
continuing violation
30,000 plus
400 per day of
continuing violation
NON-FILING OF MONTHLY
SALES/REDEMPTION
REPORT
20,000 plus
200 per day of
continuing violation
30,000 plus
300 per day of
continuing violation
60,000.00 plus
600 per day of
continuing violation
FAILURE TO EFFECT
REDEMPTION REQUEST
WITHIN 7 BANKING DAYS
Section 35 of ICA;
ICA Rule 35-1(g)(1)
FAILURE TO REGISTER AS
AN INVESTMENT
COMPANY ADVISER
50,000
75,000
100,000
54
7.8.
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO PUBLISH/
UPLOAD DAILY
PRICES/NAV/INAV
10,000 plus
100 per day of
continuing violation
20,000 plus
200 per day of
continuing violation
30,000 plus
400 per day of
continuing violation
FAILURE TO
PUBLISH/UPLOAD ON A
DAILY BASIS THE
INFORMATION ON THE
INDEX AND PROTFOLIO
HOLDINGS
P10,000 plus
100 per day of
continuing violation
P20,000 plus
P200 per day of
continuing violation
P30,000 plus
P400 per day of
continuing violation
VIOLATION
FAILURE TO REGISTER AS
AN INVESTMENT
COMPANY ADVISER
FAILURE TO REGISTER AS
A MUTUAL FUND
DISTRIBUTOR
FIRST OFFENSE
(Amounts in Pesos)
50,000
SECOND OFFENSE
(Amounts in Pesos)
75,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
50,000
75,000
100,000
55
FAILURE TO REGISTER
AGENTS & INVESTMENT
SOLICITORS
COMPANY
10,000
15,000
20,000
INDIVIDUAL
5,000
10,000
15,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION
LATE OR NON-FILING
OTHER VIOLATIONS
RELATING TO THE GIS
LATE OR NON-FILING OF
ANNUAL AUDITED
FINANCIAL STATEMENT
(AAFS)
20,000
plus 100/day of delay
OTHER VIOLATIONS
RELATING TO THE AAFS
SRC Rule 28.1-1.E.2.xiii
SEC FORM ICA-IA (CHANGE IN
INFORMATION)
56
LEGAL BASIS/
SUJBECT REPORT
SRC Rule 28.1-4.C
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION
FAILURE TO MAINTAIN
THE MINIMUM
UNIMPAIRED NET
WORTH
FIRST OFFENSE
(Amounts in Pesos)
5,000 plus 100/day of
violation
SECOND OFFENSE
(Amounts in Pesos)
10,000 plus 100/day of
violation
THIRD OFFENSE
(Amounts in Pesos)
15,000
plus 100/day of violation
57
(9) BROKER DEALER OF SECURITIES , SALESMEN OR ASSOCIATED PERSONS OF BROKER OR DEALER; OTC PARTICIPANTS
Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
9.1. LICENSING REQUIREMENT
LEGAL BASIS
Section 28.1
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
EQUITY SECURITIES
100,000
150,000
200,000
PROPRIETARY SHARES
50,000
75,000
100,000
OTHER SECURITIES
50,000
75,000
100,000
10,000 plus
100/day of operation
without registration
25,000 plus
100/day of operation without
registration
50,000 plus
100/day of operation
without registration
10,000
5,000
15,000
10,000
20,000
15,000
ENGAGING IN THE
BUSINESS OF BUYING
AND SELLING SECURITIES
WITHOUT BEING
REGISTERED AS BROKERS.
DEALERS OF :
FAILURE TO REGISTER AS
BRANCH OFFICE
ACTING AS A SALESMAN
OR AN ASSOCIATED
PERSON OF ANY BROKER
DEALER WITHOUT
REGISTRATION:
SALESMAN
A. COMPANY
B. INDIVIDUAL
58
LEGAL BASIS
VIOLATION
ASSOCIATED PERSON
A. COMPANY
B. INDIVIDUAL
FIRST OFFENSE
(Amounts in Pesos)
15,000
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
15,000
THIRD OFFENSE
(Amounts in Pesos)
30,000
20,000
VIOLATION
LATE OR NON-FILING
AAFS
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus 100/day of
delay
SECOND OFFENSE
(Amounts in Pesos)
15,000 plus 100/day of delay
THIRD OFFENSE
(Amounts in Pesos)
20,000
plus 100/day of delay
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000
20,000
30,000
OTHER NON-COMPLIANCE
WITH THE
REQUIREMENTS OF SRC
RULE 68
Sections 54 and 68 of SRC
LATE-FILING
59
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
2,000 plus 100 per day
SECOND OFFENSE
(Amounts in Pesos)
4,000 plus 100 per day
THIRD OFFENSE
(Amounts in Pesos)
8,000 plus 100 per day
1,000
2,000
4,000
MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
SRC Rule 49.1-1
25,000
50,000
100,000
FAILURE TO REPORT
AMENDMENT
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
10,000 Plus
100/day of delay
30,000 Plus
200/day of delay
50,000 Plus
300/day of delay
FAILURE TO NOTIFY
DISCONTINUATION OF
EMPLOYMENT OF
SALESMAN, ASSOCIATED
PERSON
60
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 30.2-6
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
Plus 100/day
SECOND OFFENSE
(Amounts in Pesos)
30,000
Plus 200/day of delay
THIRD OFFENSE
(Amounts in Pesos)
50,000
Plus 300/day of delay
VIOLATION OF RULES ON
AFFILIATED
TRANSACTIONS
5,000
10,000
25,000
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
LATE OR NON-FILING OF
REPORT ON
TRANSACTIONS/TRADING
OF PSE SHARES
50,000
75,000
100,000
LATE FILING
QUARTERLY COMPLIANCE
REPORT
SEC Form BD 30.2 QCR
SRC Rule 30.1
SEC Form 30.1
SRC Rule 28.1-4 (H)
SEC Form 28-AMD
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
61
LEGAL BASIS/
SUBJECT REPORT
Section 141 of CCP
VIOLATION
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fine
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
Computed
10,000 plus
100 daily
25,000 plus 100 daily
penalty
n/a
n/a
n/a
n/a
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
plus 100 daily penalty
30,000
plus 100 daily penalty
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
CERTIFICATION BY THE
SECRETARY ON THE
ATTENDANCE OF DIRECTORS TO
MEETING
NON-FILING
25,000
plus 100 daily penalty
30,000
plus 100 daily penalty
Suspension of CA
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is
the Total Assets reported
in the latest Financial
Statements
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000
LATE-FILING
NON-FILING
ANTI-MONEY LAUNDERING
MANUAL
Revised Code on Corporate
Governance
62
LEGAL BASIS/
SUBJECT REPORT
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)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
25,000 plus
500 per day of delay
SECOND OFFENSE
(Amounts in Pesos)
50,000 plus
1,000 per day of delay
THIRD OFFENSE
(Amounts in Pesos)
75,000 plus
1,250 per day of continuing
violation
ANY
MISREPRESENTATION IN
THE SUBMITTED MANUAL
ON CORPORATE
GOVERNANCE
25,000 plus
200 per day of continuing
violation
50,000.00 plus
500 per day of continuing
violation
100,000 plus
1,000 per day of continuing
violation
25,000 plus
500 per day of continuing
violation
50,000.00 plus
1,000 per day of continuing
violation
100,000 plus
2,000 per day of continuing
violation
50,000 plus
1,000 per day of continuing
violation
100,000.00 plus
2,000 per day of continuing
violation
Suspension or Revocation
NON-FILING OF THE
ANNUAL CORPORATE
GOVERNANCE REPORT
100,000 plus
1,000 per day of continuing
violation
200,000.00 plus
2,000 per day of continuing
violation
Suspension or Revocation
63
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
MISREPRESENTATION/
OMISSION OF
INFORMATION IN THE
ANNUAL CORPORATE
GOVERNANCE REPORT
FIRST OFFENSE
(Amounts in Pesos)
25,000 plus
500 per day of continuing
violation
SECOND OFFENSE
(Amounts in Pesos)
50,000.00 plus
1,000 per day of continuing
violation
THIRD OFFENSE
(Amounts in Pesos)
100,000 plus
2,000 per day of continuing
violation
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
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
10,000
20,000
Suspension of CA
VIOLATION
VIOLATION OF
MANIPULATIVE
PRACTICES RULE
VIOLATION OF
ADVERTISEMENTS AND
COMMUNICATIONS
WITH PUBLIC RULE
FIRST OFFENSE
(Amounts in Pesos)
BD 100,000
AP/S 50,000
SECOND OFFENSE
(Amounts in Pesos)
BD 150,000 AP/S 75,000
THIRD OFFENSE
(Amounts in Pesos)
BD 200,000 AP/S
100,000
BD 50,000
AP/S 25,000
64
LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 24.1 (d)-2
VIOLATION
VIOLATION OF
PUBLICATION OF
TRANSACTIONS AND
QUOTATIONS RULE
FIRST OFFENSE
(Amounts in Pesos)
BD 50,000
AP/S 25,000
SECOND OFFENSE
(Amounts in Pesos)
BD 100,000 AP/S 50,000
THIRD OFFENSE
(Amounts in Pesos)
BD 150,000 AP/S 75,000
VIOLATION OF PAYMENT
TO INFLUENCE MARKET
PRICES RULE
BD 100,000
AP/S 50,000
BD 200,000 AP/S
100,000
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
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
25,000
50,000
100,000
65
LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 26.3-2 (b)
VIOLATION
VIOLATION OF
PROHIBITED
REPRESENTATIONS RULE
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
150,000
THIRD OFFENSE
(Amounts in Pesos)
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
FAILURE TO MAINTAIN
REGISTERED AP
10,000 plus
100/day of operation without
registration
25,000 plus
100/day of operation
without registration
50,000 plus
100/day of operation
without registration
SRC 28.1-1(E)(xi)
FAILURE TO MAINTAIN
SEPARATE BANK
ACCOUNT FOR CLIENT
FUND
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
VIOLATION OF THE
ETHICAL STANDARDS
RULE
25,000
50,000
100,000
VIOLATION OF
CUSTOMER ORDERS RULE
10,000
30,000
50,000
VIOLATION OF CLIENT
AGREEMENT RULE
10,000
30,000
50,000
VIOLATION OF CLIENT
AGREEMENT WITH
DISCRETIONARY
ACCOUNT RULE
25,000
50,000
100,000
66
LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 30.2-4
VIOLATION
VIOLATION OF
SUITABILITY RULE
TRADING
VIOLATION OF
CHURNING/
EXCESSIVE TRADING
VIOLATION OF RULES ON
COMMISSIONS &
CHARGES FOR SERVICES
OF BROKER DEALER
FAILURE TO ESTABLISH/
MAINTAIN EFFECTIVE
AND APPROPRIATE
COMPLIANCE FUNCTIONS
FAILURE TO INFORM THE
COMMISSION OF
OCCURRENCES OF
MATERIAL NONCOMPLIANCE WITH LEGAL
REQUIREMENTS , FIRMS
OWN POLICIES AND
PROCEDURES
FAILURE TO REPORT TO
MANAGEMENT ALL
OCCURRENCES OF
MATERIAL NONCOMPLIANCE BY THE
FIRM OR ITS STAFF WITH
LEGAL AND REGULATORY
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
50,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
25,000
50,000
100,000
10,000
30,000
50,000
15,000
25,000
50,000
25,000
50,000
100,000
10,000
30,000
50,000
10,000
30,000
50,000
67
LEGAL BASIS/
SUBJECT REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000
30,000
50,000
FAILURE TO COMPLY
WITH RULE ON
MAINTENANCE OF A
LOGBOOK
SRC Rule 30.2-7
FAILURE TO ESTABLISH,
IMPLEMENT TRAINING
PROGRAM
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
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
VIOLATION OF
CUSTOMER FIRST POLICY
25,000
50,000
100,000
VIOLATION OF CHINESE
WALLS POLICY
25,000
50,000
100,000
VIOLATION OF MARGIN
REQUIREMENT
RULE
10,000
30,000
50,000
68
LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 49.1-1; SEC MC # 16 S
2004
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Suspension of Operations
Suspension of Operations
Suspension of Operations
Suspension of Operations
Suspension of Operations
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
Suspension of Operations
Suspension of Operations
Suspension of Operations
VIOLATION OF NET
CAPITAL RULE AND THE
RBCA RULES
69
LEGAL BASIS/
SUBJECT REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
50,000 plus 10,000/day of
violation
SECOND OFFENSE
(Amounts in Pesos)
75,000 plus 15,000/day of
violation
THIRD OFFENSE
(Amounts in Pesos)
100,000 plus 20,000/day of
violation
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
NON-COMPLIANCE WITH
THE MINIMUM
UNIMPAIRED PAID-UP
CAPITAL
NON-SUBMISSION OF
CAPITAL BUILD-UP PLAN
FAILURE TO CEASE
OPERATION IF (1)
MINIMUM RBCA RATIO
OF 1.1; OR (2) THE
MINIMUM NLC IS
BREACHED
70
LEGAL BASIS/
SUBJECT REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
ERRONEOUS
COMPUTATION OF RBCA
REQUEST
10,000
30,000
50,000
10,000
30,000
50,000
VIOLATION OF
LIMITATION ON
WITHDRAWAL OF EQUITY
CAPITAL
10,000
30,000
50,000
VIOLATION OF
CUSTOMER PROTECTION
RESERVES & CUSTODY OF
SECURITIES RULE
10,000
30,000
50,000
VIOLATION OF SPECIAL
RESERVE BANK ACCOUNT
RULE
10,000
30,000
50,000
VIOLATION OF LENDING
AND VOTING CUSTOMERS
SECURITIES RULE
10,000
30,000
50,000
AND/OR FAILURE TO
EFFECT PROPOSAL
(MEASURES TO BE TAKEN)
WITHIN 10 DAYS
71
LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 50
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
NOT CURRENT
50,000
Plus 500/day of violation
NOT AVAILABLE
Immediate Suspension
VIOLATION OF
PURCHASES AND SALES
ACCOUNT RULE
VIOLATION OF BOOKS
AND RECORDS RULE
VIOLATION OF RECORDS
AND RETENTION RULE
PRESERVATION FOR 5 YRS
ACCESSIBLE FOR 2 YRS
10,000
10,000
30,000
30,000
50,000
50,000
CEASED OPERATION
10,000
30,000
50,000
REPORT OF EXCHANGE
MEMBERS, BROKERS,
DEALERS TRADING
THROUGH MEMBERS
10,000
30,000
50,000
VIOLATION OF
CUSTOMER ACCOUNT
INFORMATION RULE
10,000
30,000
50,000
VIOLATION OF ORDER
TICKET RULE
10,000
30,000
50,000
72
LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 52.1-8
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
FAILURE TO SEND
CUSTOMER ACCOUNT
STATEMENT MONTHLY
10,000
30,000
50,000
VIOLATION OF
CUSTOMER COMPLAINT
RULE
10,000
30,000
50,000
FAILURE TO PRESERVE
SEPARATE FILE OF
COMPLAINTS RECEIVED
AND ACTION TAKEN
VIOLATION OF THE
MONTHLY SECURITIES
COUNT BY BROKER,
DEALER RULE
FAILURE TO ENGAGE THE
SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION
10,000
30,000
50,000
10,000
30,000
50,000
50,000
100,000
200,000
VIOLATION OF RULE ON
CUSTOMER ACCOUNT
STATEMENTS
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
73
9.4. ADDITIONAL REQUIREMENTS FOR OTC PARTICIPANTS (SEC MEMORANDUM CIRCULAR NO. 14, SERIES OF 2006 OR
OTC RULES)
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
REGISTRATION OF BROKER,
DEALER, SALESMAN AND
ASSOCIATED PERSON OF
BROKER OR DEALER IN AN OTC
MARKET
MAKING, CREATING OR
OPERATING AN OTC
MARKET WITHOUT BEING
REGISTERED AS BROKER,
DEALER OR SALESMAN OF
BROKER OR DEALER IN
AN OTC MARKET.
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP min
mum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
ENABLING ANOTHER
PERSON TO MAKE,
CREATE OR OPERATE AN
OTC MARKET WHERE
SAID PERSON IS NOT
AUTHORIZED TO ACT AS
BROKER, DEALER OR
Section 3 of the
OTC Rules
MAKING, CREATING OR
OPERATING AN OTC MARKET
74
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
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
75
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
B/D - P100,000
B/D - P150,000
B/D - P200,000
AP/SP P50,000
AP/SP P75,000
AP/SP P100,000
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
ELIGIBLE INVESTORS IN
AN OTC MARKET
VIOLATION AGAINST THE
REQUIREMENT THAT A
NON-QUALIFIED
INVESTOR SHALL NOT
PARTICIPATE IN AN OTC
MARKET
PROHIBITION ON
TRADING OF
UNREGISTERED
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET
76
LEGAL BASIS/
SUBJECT MATTER
Section 8 of the OTC Rules
VIOLATION
ELIGIBLE SECURITIES IN
AN OTC MARKET
FIRST OFFENSE
(Amounts in Pesos)
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
SECOND OFFENSE
(Amounts in Pesos)
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
THIRD OFFENSE
(Amounts in Pesos)
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM
VIOLATION OF THE
REQUIREMENTS FOR
SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM
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
77
LEGAL BASIS/
SUBJECT MATTER
Section 14 of the OTC Rules
VIOLATION
INTEGRATION OF THE
QUOTATION SYSTEMS
FIRST OFFENSE
(Amounts in Pesos)
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
SECOND OFFENSE
(Amounts in Pesos)
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
THIRD OFFENSE
(Amounts in Pesos)
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
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.
78
LEGAL BASIS/
SUBJECT MATTER
Section 17 of the OTC Rules
VIOLATION
APPROVAL OF A CENTRAL
TRADE REPORTING
SYSTEM
FIRST OFFENSE
(Amounts in Pesos)
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
SECOND OFFENSE
(Amounts in Pesos)
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
THIRD OFFENSE
(Amounts in Pesos)
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
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.
COMMISSIONS, CHARGES
AND FEES
VIOLATIONS IN
CHARGING
COMMISSIONS AND FEES
IN OTC TRANSACTIONS.
79
LEGAL BASIS/
SUBJECT MATTER
Section 20 of the OTC Rules
VIOLATION
CLEARING AND
SETTLEMENT
VIOLATIONS IN CLEARING
AND SETTLEMENT OF OTC
TRANSACTIONS.
ENGAGING IN UNLAWFUL
ACTS AS ENUMERATED IN
THE OTC RULES.
OTHER PROHIBITED ACTS
ENGAGING IN OTHER
PROHIBITED ACTS AS
ENUMERATED IN THE OTC
RULES
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
FIRST OFFENSE
(Amounts in Pesos)
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
SECOND OFFENSE
(Amounts in Pesos)
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
THIRD OFFENSE
(Amounts in Pesos)
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
BD minimum of 150,000
S/AP minimum of 75,000
OP minimum of 25,000
BD minimum of 250,000
S/AP minimum of 100,000
OP minimum of 50,000
80
VIOLATION
FAILURE TO SECURE A
LICENSE TO OPERATE A
BRANCH
FIRST OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)
SECOND OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)
THIRD OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)
81
FIRST OFFENSE
(Amounts in Pesos)
10,000 per AFS or 1,000 per
material deficiency,
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
20,000 per AFS or 2,000 per
material deficiency,
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
30,000 per AFS or 3,000 per
material deficiency,
whichever is higher
MATERIAL MISSTATEMENT
OR MISREPRESENTATION
OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68
10,000
20,000
30,000
FAILURE TO SECURE
APPROVAL OF
UNDERWRITING
AGREEMENT
NON-SUBMISSION OF
DULY NOTARIZED AND
EXECUTED COPY OF UA
VIOLATION
MATERIAL DEFICIENCY
LATE OR NON-FILING OF
SEC FORM IH-14 AR
(ANNUAL REPORT)
82
LEGAL BASIS/
SUBJECT REPORT
SEC Form IH-14 AR
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
LATE OR NON-FILING OF
SEC FORM IH-14 (QPRQUARTERLY PROGRESS
REPORTS WITH ATTACHED
QUARTERLY FINANCIAL
STATEMENTS)
FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION
OTHER VIOLATIONS
RELATING TO SEC FORM
IH-14
OTHER VIOLATIONS
RELATING TO THE
QUARTERLY FINANCIAL
STATEMENTS
LATE OR NON-FILING OF
SEC FORM IHU-A
FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION
83
LEGAL BASIS/
SUBJECT REPORT
SEC Form IHU-A
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
25,000
50,000
100,000
OTHER VIOLATIONS
RELATING TO SEC FORM
IHU-A
LATE FILING OF RBCA
REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.
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
FAILURE TO FILE
QUARTERLY COMPLIANCE
REPORT
10,000
Plus 100/day
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
84
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 28.1-4 (H)
SEC Form 28-AMD
VIOLATION
FAILURE TO REPORT ANY
CHANGE IN INFORMATION
IN SEC FORM 28-S AND SEC
FORM 28-AP
FIRST OFFENSE
(Amounts in Pesos)
10,000
Plus 100/day of delay
SECOND OFFENSE
(Amounts in Pesos)
30,000
Plus 200/day of delay
THIRD OFFENSE
(Amounts in Pesos)
50,000
Plus 300/day of delay
LATE-FILING
NON-FILING
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
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
LATE FILING
NON-FILING
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
85
LEGAL BASIS/
SUBJECT REPORT
Anti-Money Laundering Act, as
amended
VIOLATION
LATE-FILING
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
25,000
plus 100 daily penalty
n/a
n/a
ANTI-MONEY LAUNDERING
MANUAL
NON-FILING
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
plus 100 daily penalty
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
CERTIFICATION BY THE
SECRETARY ON THE
ATTENDANCE OF DIRECTORS
TO MEETING
NON-FILING
25,000
plus 100 daily penalty
30,000
plus 100 daily penalty
Suspension of CA
LATE-FILING
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
86
LEGAL BASIS/
SUBJECT REPORT
Revised Code on Corporate
Governance; Section 54 of SRC
VIOLATION
SECOND OFFENSE
(Amounts in Pesos)
20,000
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
FIRST OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
SECOND OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
THIRD OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
10,000
OTHER REQUIREMENTS,
INCLUDING COMPLIANCE WITH
OTHER REPRESENTATIONS IN
THE MANUAL OF CORPORATE
GOVERNANCE
VIOLATION
VIOLATION OF
INTERLOCKING DIRECTORS
AND OFFICERS
87
LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 9 of the Omnibus Rules;
Section 16 of the Investment
Houses Law
RULE ON MANAGEMENT OF
FUNDS
VIOLATION
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
FIRST OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
SECOND OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
THIRD OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
COLLECTION OF
UNDERWRITING FEES IN
EXCESS OF 5% OF THE
AMOUNT GENERATED BY
THE UNDERWRITER FOR
THE ISSUER
UNDERWRITING
COMMITMENT
UNDERTAKEN IN AN
AMOUNT EXCEEDING
TWENTY (20) TIMES ITS
NETWORTH
RULE ON UNDERWRITING
COMMITMENT
Section 11. B of the Omnibus
Rules
88
LEGAL BASIS/
SUBJECT REQUIREMENTS
VIOLATION
i.
ii.
iii.
iv.
v.
NON-COMPLIANCE WITH
THE REQUIREMENT THAT
WHENEVER AN IH IS
ENGAGED IN THE
MANAGEMENT OF FUNDS,
ITS OFFICER/S AND OTHER
PERSONNEL DIRECTLY
INVOLVED IN THE
MANAGEMENT OF FUNDS
ARE PROHIBITED FROM
SIMULTANEOUSLY OR
CONCURRENTLY BUYING
OR SELLING THE SHARES
OF STOCK OF THE SAME
FIRM THAT THE FUNDS
ARE BUYING AND SELLING
FIRST OFFENSE
(Amounts in Pesos)
Cease and desist order;
Prohibition from
underwriting;
Prohibition from
extending new loans or
making new investments;
Suspension of the privilege
to establish and/or open
approved branches,
agencies or offices; and/or
Other sanctions prescribed
under existing pertinent
laws, rules and regulations
SECOND 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
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
i.
ii.
iii.
iv.
v.
THIRD OFFENSE
(Amounts in Pesos)
Cease and desist order;
Prohibition from
underwriting;
Prohibition from
extending new loans or
making new investments;
Suspension of the
privilege to establish
and/or open approved
branches, agencies or
offices; and/or
Other sanctions
prescribed under existing
pertinent laws, rules and
regulations
89
LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 11.E of the Omnibus
Rules; Section 16 of the
Investment Houses Law
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
SECOND OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
THIRD OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
FAILURE TO DERIVE AT
LEAST 25% OF ITS
ANNUAL GROSS INCOME
FROM UNDERWRITING &
OTHER FEE-BASED
ACTIVITIES.
NON-COMPLIANCE WITH
THE REQUIREMENT THAT
THERE SHALL BE NO
ADVANCES TO DIRECTORS,
OFFICERS AND
STOCKHOLDERS OWNING
AT LEAST 10% OF THE
OUTSTANDING CAPITAL OF
AN IH SHALL BE ALLOWED ,
UNLESS SUFFICIENTLY
COLLATERALIZED, AS
REQUIRED BY BSP
90
LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 15 of the Omnibus
Rules; Section 16 of the
Investment Houses Law
BOOKS AND RECORDS RULE
VIOLATION
FAILURE TO MAINTAIN
AND PRESERVE RECORDS
OF ALL TRANSACTIONS
AND OTHER DOCUMENTS
FOR FIVE (5) YEARS FROM
THE DATES OF THE
TRANSACTIONS
FIRST OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
SECOND OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
THIRD OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
100,000
200,000
FAILURE TO DISCLOSE TO
THE COMMISSION THAT
THEY ARE ENGAGED IN THE
BUSINESS OF DEALING IN
GOVERNMENT SECURITIES.
50,000
91
LEGAL BASIS/
SUBJECT REQUIREMENTS
Corporation Code of the
Philippines (CCP)
VIOLATION
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION
VIOLATION OF THE
PROHIBITION ON THE USE
OF UNREGISTERED
EXCHANGE; FAILURE TO
RENEW LICENSE
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
200,000
THIRD OFFENSE
(Amounts in Pesos)
300,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION
LATE-FILING
92
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
NON-FILING
MATERIAL DEFICIENCY
MATERIAL MISSTATEMENT
OR MISREPRESENTATION
OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000
20,000
30,000
LATE FILING
NON-FILING
1,000
2,000
4,000
MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
LATE FILING OR NONFILING
93
LEGAL BASIS/
SUJBECT REPORT
SRC Rule 39.1.1 (f)
MONTHLY REPORT OF
PERIODIC EXAMINATIONS
(within ten (10) days after the
end of each month)
SRC Rule 30.2.8
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
50,000
Plus 1,500/day of delay
LATE OR NON-FILING OF
BLOCK SALE REPORT
50,000
75,000
100,000
LATE OR NON-FILING OF
CEILING/FLOOR ALERTS*
50,000
75,000
100,000
50,000
75,000
100,000
LATE OR NON-FILING
LATE FILING
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
94
LEGAL BASIS/
SUJBECT REPORT
Section 141 of CCP
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
n/a
n/a
25,000
plus 100 daily penalty
n/a
n/a
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
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
Anti-Money Laundering Act, as
amended
ANTI-MONEY LAUNDERING
MANUAL
LATE-FILING
NON-FILING
95
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(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
Suspension of CA
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
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
10,000
20,000
Suspension of CA
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
100,000
200,000
300,000
OTHER REQUIREMENTS,
INCLUDING COMPLIANCE WITH
OTHER REPRESENTATIONS IN
THE MANUAL OF CORPORATE
GOVERNANCE
VIOLATION
NON-COMPLIANT AS TO
COMPOSITION OF THE
BOARD OF AN EXCHANGE
96
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE OF AN EXCHANGE
TO PROTECT CUSTOMER
ACCOUNTS IN CASE OF
BUSINESS FAILURE
FAILURE TO SUPERVISE
LISTED COMPANIES
50,000
75,000
100,000
50,000
75,000
100,000
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
97
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
50,000
75,000
100,000
FAILURE OF SRO TO
INITIATE INVESTIGATION,
IF WARRANTED
FAILURE OF SRO TO
INVESTIGATE SUSPECTED
VIOLAITIONS OF SRC
SECTIONS 24, 26, 27
50,000
75,000
100,000
50,000
75,000
100,000
FAILURE OF SRO TO
INVESTIGATE VIOLATION
OF RULES ON SALES
PRACTICES, ETC
50,000
75,000
100,000
FAILURE OF SRO TO
NOTIFY THE COMMISSION
OF INVESTIGATION OF SRC
SECTIONS 24,26,27
FAILURE TO DISCIPLINE A
MEMBER, INCLUDING
SUSPENSION OR
EXPULSION OF A MEMBER,
IF SUCH PERSON HAS BEEN
FOUND TO HAVE BEEN
10,000
30,000
50,000
50,000
75,000
100,000
98
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(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)
50,000
75,000
100,000
FAILURE TO REGISTER AS
AN SRO
100,000
200,000
300,000
99
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
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
FAILURE OF SRO,
REGISTERED EXCHANGE
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
COMPLY WITH THE
100
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
COMMISSIONS ORDER TO
EFFECT CHANGES IN ITS
RULE/PRACTICE
FAILURE OF SRO TO
NOTIFY THE COMMISSION
OF ANY DISCIPLINARY
SANCTION OF ANY
MEMBER
VIOLATION OF RULE ON
KEEPING OF EXCHANGE
RECORDS
50,000
100,000
200,000
ACCREDITATION
OF EXTERNAL AUDITOR
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
101
VIOLATION
FAILURE TO REGISTER AS
CLEARING AGENCY
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
200,000
THIRD OFFENSE
(Amounts in Pesos)
300,000
100,000
200,000
300,000
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
MATERIAL DEFICIENCY
MATERIAL MISSTATEMENT
OR MISREPRESENTATION
30,000 or 1/30 of 1% of
the amount of
misstatement, whichever
is higher1
LATE OR NON-FILING OF
ANNUAL AUDITED
FINANCIAL STATEMENTS
102
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68
10,000
20,000
30,000
LATE FILING
NON-FILING
MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
1,000
2,000
4,000
FAILURE TO FILE
AMENDMENT FORM FOR
CLEARING AGENCIES
LATE FILING
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
103
LEGAL BASIS/
SUJBECT REPORT
Section 141 of CCP
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
Revised Code on Corporate
Governance
MANUAL ON CORPORATE
GOVERNANCE
LATE-FILING
10,000 plus
100 daily
n/a
n/a
NON-FILING
25,000
plus 100 daily penalty
n/a
n/a
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
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
104
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
COMPLIANCE OFFICERS ON
THE EXTENT OF COMPLIANCE
WITH MANUAL ON
CORPORATE GOVERNANCE
NON-FILING
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
25,000
plus 100 daily penalty
30,000
plus 100 daily penalty
Suspension of CA
10,000
20,000
Suspension of CA
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE OF A CLEARING
AGENCY TO PAY THE
PRESCRIBED ANNUAL FEE
FAILURE TO REPORT DAILY
BREACHES OF RULES OR
DIFFICULTIES BY
PARTICIPANT
50,000basic penalty
Plus 500/day of delay
50,000
100,000
200,000
105
LEGAL BASIS/
SUJBECT REQUIREMENT
VIOLATION
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION
VIOLATION OF
REGISTRATION
REQUIREMENT OF ATS
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
150,000
THIRD OFFENSE
(Amounts in Pesos)
200,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION
LATE-FILING
106
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
plus
1,000 per day of delay
NON-FILING
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
30,000 or 1/30 of 1% of
the amount of
misstatement, whichever
is higher1
10,000
20,000
30,000
LATE FILING
NON-FILING
1,000
2,000
4,000
MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
107
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FIRST OFFENSE
(Amounts in Pesos)
10,000 basic fine
plus 1,000/day of delay
SECOND OFFENSE
(Amounts in Pesos)
10,000 basic fine
plus 1,000/day of delay
THIRD OFFENSE
(Amounts in Pesos)
10,000 basic fine
plus 1,000/day of delay
ATS Form 2
ATS Form 2-A ATS Form 3
ATS Form 4
ATS Form 5
ATS Form 6
VIOLATION
Late or Non-Approval of
Investors
Training Program
Violation of any provision
of the Rules and
Regulations on ATS
50,000
100,000
200,000
108
LEGAL BASIS/
REQUIREMENT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
ACREDITATION
Corporation Code of the
Philippines (CCP)
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
VIOLATION
FAILURE TO REGISTER AS
TRANSFER AGENT
FIRST OFFENSE
(Amounts in Pesos)
50,000
SECOND OFFENSE
(Amounts in Pesos)
75,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
FIRST OFFENSE
(Amounts in Pesos)
10,000
Plus 100/day of delay
SECOND OFFENSE
(Amounts in Pesos)
30,000
Plus 200/day of delay
THIRD OFFENSE
(Amounts in Pesos)
50,000
Plus 300/day of delay
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
VIOLATION
LATEOR NON-FILING
FILING OF ANNUAL
REPORT
LATE OR NON-FILING OF
ANNUAL AUDITED
FINANCIAL STATEMENTS
109
LEGAL BASIS/
SUBJECT REPORT
Sections 54 and 68 of SRC;
SRC Rule 68
AUDITED FINANCIAL STATEMENTS
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
10,000 per AFS or 1,000 per
material deficiency,
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
20,000 per AFS or 2,000 per
material deficiency,
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
40,000 per AFS or 3,000
per material deficiency,
whichever is higher
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
40,000 or 1/30 of 1% of
the amount of
misstatement, whichever
is higher1
10,000
20,000
30,000
LATE-FILING
NON-FILING
1,000
2,000
4,000
MATERIAL DEFICIENCY
OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS
Section 141 of the CCP
GENERAL INFORMATION SHEET
LATE FILING
Up to P100,000: 500
110
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
NON-FILING
FIRST 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
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
n/a
Suspension of CA
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
Anti-Money Laundering Act, as
amended
LATE-FILING
10,000 plus
100 daily
ANTI-MONEY LAUNDERING
MANUAL
Revised Code on Corporate
Governance
NON-FILING
LATE-FILING
10,000 plus
100 daily
n/a
20,000 plus
100 daily
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
plus 100 daily penalty
30,000
plus 100 daily penalty
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
111
LEGAL BASIS/
SUBJECT REPORT
CERTIFICATION BY THE SECRETARY
ON THE ATTENDANCE OF
DIRECTORS TO MEETING
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
25,000
plus 100 daily penalty
SECOND OFFENSE
(Amounts in Pesos)
30,000
plus 100 daily penalty
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
CERTIFICATION BY THE
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
plus 100 daily penalty
30,000
plus 100 daily penalty
Suspension of CA
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
10,000
20,000
Suspension of CA
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
OTHER REQUIREMENTS,
INCLUDING COMPLIANCE WITH
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
SRC Rule 36.4.1(d)
FAILURE TO REPORT
AMENDMENTS TO SEC
FORM 36-TA
FAILURE TO TIMELY
SUBMIT REPORT
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)
112
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 36-4.2(e)
VIOLATION
FAILURE TO SUBMIT
OTHER REPORTS
FIRST OFFENSE
(Amounts in Pesos)
10,000
Plus 100/day of delay
SECOND OFFENSE
(Amounts in Pesos)
30,000
Plus 200/day of delay
THIRD OFFENSE
(Amounts in Pesos)
50,000
Plus 300/day of delay
FIRST OFFENSE
(Amounts in Pesos)
10,000
Plus 100/day of delay
SECOND OFFENSE
(Amounts in Pesos)
30,000
Plus 200/day of delay
THIRD OFFENSE
(Amounts in Pesos)
50,000
Plus 300/day of delay
VIOLATION
FAILURE TO COMPLY
WITH PERIODIC
REPORTING TO ISSUER
REQUIREMENT
FAILURE TO MAINTAIN A
COMPLAINT LOG
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
FAILURE TO MAINTAIN
REQUIRED RECORDS
10,000
Plus 100/day of delay
30,000
Plus 200/day of delay
50,000
Plus 300/day of delay
25,000
50,000
100,000
ACCREDITATION
OF EXTERNAL AUDITOR
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
113
(15) OTHER PROHIBITED PRACTICES AND SCHEMES UNDER THE SECURITIES REGULATION CODE
LEGAL BASIS/
REQUIREMENTS
Sec. 24, SRC
VIOLATION
Manipulative Practices
Fraudulent Transactions
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
profits gained or losses
avoided
Associated Person or
Salesman: 75,000.00
Associated Person or
Salesman: 150,000.00
Individual/Corporation/Broker Individual/Corporation/Broker
Dealer of Securities:
Dealer of Securities: 150,000.00
100,000.00 + 100% of the
+ 100% of the profits gained or
profits gained or losses
losses avoided
avoided
Associated Person or
Salesman: 75,000.00
Insiders Trading
Individual/Corporation/Broker Individual/Corporation/Broker
Dealer of Securities:
Dealer of Securities: 150,000.00
100,000.00 + 100% of the
+ 200% of the profits gained or
profits gained or losses
losses avoided
avoided
Associated Person or
Salesman: 75,000.00
Individual/Corporation/Br
oker Dealer of Securities:
200,000.00 + 100% of the
profits gained or losses
avoided
Associated Person or
Salesman: 150,000.00
Individual/Corporation/Br
oker Dealer of Securities:
200,000.00 + 300% of the
profits gained or losses
avoided
Associated Person or
Salesman: 150,000.00
114
LEGAL BASIS/
REQUIREMENTS
Sec. 54 & 68, SRC
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
115
VIOLATION
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)
FIRST OFFENSE
(Amounts in Pesos)
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
(1) Group A: 100,000
Group B: 50,000
Group C: 20,000
THIRD OFFENSE
(Amounts in Pesos)
-
116
VIOLATION
FAILURE TO TIMELY
SUBMIT THE REPORT
FIRST OFFENSE
(Amounts in Pesos)
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
Group A: 100,000 and
suspension of accreditation
THIRD OFFENSE
(Amounts in Pesos)
Group A: 200,000 and
removal of accreditation
Group B: 50,000
and suspension of
accreditation
Group B: 100,000
and removal of accreditation
Group C: 20,000
and suspension of
accreditation
SRC Rule 68, as amended
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 C: 40,000
and removal of accreditation
VIOLATION
Failure to comply with
prescribed auditing
standards, as maybe
shown by the findings on
the financial statements
FIRST OFFENSE
(Amounts in Pesos)
50% of the amount imposable
on the corporate client whose
audited financial statements
are materially deficient or
misstated
SECOND OFFENSE
(Amounts in Pesos)
Group A: 100,000 and
suspension of accreditation
THIRD OFFENSE
(Amounts in Pesos)
Group A: 200,000 and
removal of accreditation
Group B: 50,000
and suspension of
Group B: 100,000
and removal of accreditation
117
LEGAL BASIS/
REQUIREMENTS
THE SEC RULES
VIOLATION
audited by the
accredited external
auditor or such other
findings as maybe
established
Failure to comply with
the Code of Ethics for
Professional Accountants
including independence
requirements
FIRST OFFENSE
(Amounts in Pesos)
If impact of non-compliance is
not quantifiable:
Group A: 50,000
Group B: 25,000
Group C: 10,000
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
accreditation
Group C: 20,000
and suspension of
accreditation
THIRD OFFENSE
(Amounts in Pesos)
Group C: 40,000
and removal of accreditation
Group B: 50,000
and suspension of
accreditation
Group B: 100,000
and removal of accreditation
Group C: 20,000
and suspension of
accreditation
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
Plus PhP 100 daily fine until
compliance
Group A: 50,000
Group B: 25,000
Group C: 10,000
Group C: 40,000
and removal of accreditation
Group A: 50,000
Group B: 25,000
Group C: 10,000
Plus PhP 100 daily fine until
compliance
Group B: 50,000
and suspension of
accreditation
Group B: 100,000
and removal of accreditation
118
LEGAL BASIS/
REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
Group C: 20,000
and suspension of
accreditation
Group A: 50,000
Group B: 20,000
Group C: 10,000
THIRD OFFENSE
(Amounts in Pesos)
Group C: 40,000
and removal of accreditation
ACCREDITATION REQUIREMENT
LEGAL BASIS/
REQUIREMENT
Sections 12.1 and 54 of SRC; SRC
Rule 12.1;
REGISTRANTS OF DEBT SECURITIES
MUST BE RATED BY AN
ACCREDITED CREDIT RATING
AGENCY
VIOLATION
THE CREDIT RATING
AGENCY WHICH ISSUED
THE RATING IS NOT
ACCREDITED WITH THE
COMMISSION
FIRST OFFENSE
(Amounts in Pesos)
The credit rating report shall
not be accepted as a
supporting document to the
registration statement
SECOND OFFENSE
(Amounts in Pesos)
(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;
THIRD OFFENSE
(Amounts in Pesos)
-
119
VIOLATION
FAILURE TO SUBMIT THE
PRESCRIBED REPORTS
UNDER THE RULE
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
50,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
and suspension of
accreditation
SRC Rule 12
ANNUAL FEE
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO TIMELY
SETTLE THE PRESCRIBED
ANNUAL FEE
FAILURE TO COMPLY
WITH THE PRESCRIBED
INDEPENDENCE,
STRUCTURE AND
PROCEDURAL
REQUIREMENTS UNDER
THE RULE
50,000
100,000 and
suspension of
accreditation
SUBSEQUENT
OFFENSES
(Amounts in
Pesos)
40,000 plus 100
per day of delay
and suspension
of accreditation
-
120
ACCREDITATION REQUIREMENT
LEGAL BASIS
VIOLATION
Acceptance by an
appraisal company of an
appraisal engagement
with a covered
corporation without prior
accreditation with the
Commission
FIRST OFFENSE
(Amounts in Pesos)
The appraisal report
shall not be accepted as
a supporting document
to the application or
financial statements
1/100 of 1% of the
amount of
consideration
1/100 of 1% of the
property dividend
SECOND OFFENSE
(Amounts in Pesos)
(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.
1/100 of 1% of the
amount of consideration
THIRD OFFENSE
(Amounts in Pesos)
-
1/100 of 1% of the
amount of consideration
1/100 of 1% of the
property dividend
1/100 of 1% of the
property dividend
121
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus 100
daily fine
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus P 100
daily fine
THIRD OFFENSE
(Amounts in Pesos)
50,000 and suspension of
accreditation
MATERIALLY
INCOMPLETE ANNUAL
REPORT
10,000
20,000
FAILURE TO TIMELY
SUBMIT COPIES OF
RENEWED LICENSE/S OF
THE APPRAISAL
COMPANYS PROPERTY
VALUER/S
10,000
20,000
MATERIAL
MISREPRESENTATION IN
THE ANNUAL REPORT
10,000
20,000
MATERIAL
MISREPRESENTATION IN
ANY APPRAISAL REPORT
ISSUED BY THE
COMPANY
50,000
FAILURE TO TIMELY
SUBMIT ANNUAL
REPORT
122
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus P100 per
day of delay
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus P100 per day of delay
THIRD OFFENSE
(Amounts in Pesos)
40,000 plus P100 per day
of delay
FAILURE TO COMPLY
WITH THE PRESCRIBED
OPERATIONAL AND
QUALIFICATION
REQUIREMENTS FOR
ACCREDITED APPRAISAL
COMPANIES
50,000
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
Revocation
SECOND OFFENSE
(Amounts in Pesos)
n/a
THIRD OFFENSE
(Amounts in Pesos)
n/a
CORPORATION WHOSE
INCORPORATOR/S
IS/ARE MINOR/S
INCORPORATOR/S WITH
FAKE TINS (TAXPAYER
IDENTIFICATION CARD/S)
Revocation
n/a
n/a
INCORPORATOR/S WHO
IS/ARE DECEASED AT
THE TIME OF
INCORPORATION
Revocation
n/a
n/a
Revocation
123
CORPORATION BY
ESTOPPEL
P 10,000
P 20,000
Revocation
ULTRA-VIRES ACTS
P 10,000
P 20,000
Revocation
UNAUTHORIZED USE OF
PREVIOUSLY REGISTERED
CORPORATE NAME
P 10,000
P 20,000
Revocation
SUBMISSION OF
SPURIOUS OR FALSIFIED
DOCUMENTS
Revocation
n/a
n/a
as of 13 November 2013
124