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CONSOLIDATED SCALE OF FINES

A. REGISTERED CORPORATIONS WITH NO SECONDARY LICENSE


(1) STOCK CORPORATIONS
Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT

1.1REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines (CCP)

VIOLATION
LATE FILING

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 141 of the CCP


GENERAL INFORMATION SHEETS
AND
ANNUAL FINANCIAL STATEMENTS

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

Total fine plus


10% of the total fine
computed

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

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

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

An amount based on the


above scale or 1/10 of 1% of
the amount of misstatement,
whichever is higher

An amount based on the


above scale or 2/10 of 1% of
the amount of misstatement,
whichever is higher

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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

ANNUAL FINANCIAL STATEMENTS

Section 68 of the SRC; SRC Rule 68


ANNUAL FINANCIAL STATEMENTS

MATERIAL
MISSTATEMENT OR
MISREPRE-SENTATION

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

Section 16 in relation to Section 38


of CCP
INCREASE AND DECREASE IN
CAPITAL STOCK

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

Changes in the Principal


Office Address without
amendment of the
Articles of Incorporation
Increase in number of
Board of Directors
without amendment of
the Articles of
Incorporation
Changes in corporate
purpose without
amendment of the
Articles of Incorporation
Increase and Decrease
of the Authorized
Capital Stock without
amendment of the
Articles of Incorporation

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

Retained Earnings less paid-up


capital x.001 or a minimum of
1,000.00

Retained Earnings less paid-up


capital x.001 or a minimum of
1,000.00

Retained Earnings less paidup capital x.001 or a


minimum of 1,000.00

n/a

n/a

1,000

n/a

n/a

5,000

5,000

5,000

ELECTION OF A PRESIDENT WHO


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

Election of a Secretary
who is not a Filipino

Section 43 of CCP
EXCESS IN RETAINED EARNINGS

Stock Corporations are


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

Section 46 of CCP
BY-LAWS

Non-Registration

10,000

Late- Registration

Section 48 of CCP
FISCAL YEAR

Changes in Fiscal Year


without amendment of
the By-Laws

LEGAL BASIS/
REQUIREMENT
Section 48 of CCP
DATE OF ANNUAL MEETING

VIOLATION

Changes in the Annual


Date of Meeting
without amendment of
the By-Laws

Section 50 of CCP
NON-HOLDING OF MEETING

Non-holding of Meeting

Foreign Investment Act (FIA) and


Memorandum Circular No. 8 Series
of 1998
REGISTRATION
UNDER FIA

Increase in the Foreign


Equity Percentage
without prior
registration with the
Commission

SEC Memorandum Circular No. 6,


Series of 2006

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.

GENERAL FORM FOR FINANCIAL


STATEMENTS (GFFS)

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

1/5 of 1% of the paid in capital


but not less than 10,000

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

LATE FILING OF STOCK


AND TRANSFER BOOK

(2) NON-STOCK CORPORATIONS


Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT

2.1REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines (CCP)

VIOLATION
LATE FILING

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 141 of the CCP


GENERAL INFORMATION SHEETS
AND
ANNUAL FINANCIAL STATEMENTS

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

Total fine plus


10% of the total fine
computed

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

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements
Up to 100,000: 50
100,001 to 500,000 : 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000: 3,500
Above 10,000,000 : 5,000

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

An amount based on the


above scale or 1/10 of 1% of
the amount of misstatement,
whichever is higher

An amount based on the above


scale or 2/10 of 1% of the
amount of misstatement,
whichever is higher

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

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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

ANNUAL FINANCIAL STATEMENTS

Section 68 of SRC; SRC Rule 68


ANNUAL FINANCIAL STATEMENTS

MATERIAL
MISSTATEMENT/
MISREPRESEN-TATION

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

2.2 OTHER REQUIREMENTS


LEGAL BASIS/
REQUIREMENT
Section 16 of CCP
CORPORATE NAME

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

(3) FOREIGN CORPORATIONS


Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT

3.1 STOCK BRANCH OFFICE


3.1.a. REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines and
Memorandum Circular No. 15
Series of 2006

VIOLATION
LATE FILING

GENERAL INFORMATION SHEETS


AND
ANNUAL 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

Total fine plus


10% of the total fine
computed

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

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 141 of the CCP;


Memorandum Circular No. 15,
Series of 2006

FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements

NON-FILING

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements
Up to 100,000 : 2,500
100,001 to 500,000: 4,000
500,001 to 5,000,000 : 6,000
5,000,001 to 10,000,000: 8,000
Above 10,000,000:10,000

10

LEGAL BASIS/
SUBJECT REPORT
Sec. 68 of the SRC; SRC Rule 68

VIOLATION
MATERIAL DEFICIENCY

ANNUAL FINANCIAL STATEMENTS

Sec. 68 of the SRC; SRC Rule 68


ANNUAL FINANCIAL STATEMENTS

MATERIAL
MISSTATEMENT/
MISREPRESENTATION

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

An amount based on the


above scale or 1/10 of 1% of
the amount of misstatement,
whichever is higher

An amount based on the above


scale or 2/10 of 1% of the
amount of misstatement,
whichever is higher

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

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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: 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

3.1. b. OTHER REQUIREMENTS


LEGAL BASIS/
REQUIREMENT
Memorandum Circular No. 15,
Series of 2006
AFFIDAVIT OF NON- OPERATION
Memorandum Circular No. 15
Series of 2006; Section 8

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

Basic fine: 7,000.00


Surcharge: 500 per month of
delay

Basic fine: 7,000.00


Surcharge: 1,000 per month of
delay

Basic fine: 7,000.00


Surcharge: 1,500 per
month of delay

Basic fine: 10,000


Surcharge: 500 per month of
delay

Basic fine: 10,000


Surcharge: 1,000 per month of
delay

Basic fine: 10,000.00


Surcharge: 1,500 per
month of delay

SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT
Section 126 of CCP

LATE INITIAL DEPOSIT

SECURITIES DEPOSIT
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)

Basic fine: 10,000.00


Surcharge: 500 per month of
delay

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)

Basic fine: 10,000

Basic fine: 10,000

Basic fine: 10,000.00

Basic fine: 10,000.00

Basic fine: 10,000.00

Basic fine: 10,000.00

Basic fine: 10,000.00

Basic fine: 10,000.00

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

Section 131 of CCP


PURPOSE

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

Section 132 of CCP


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

NON-FILING OR LATE
FILING OF THE ARTICLES
OF MERGER OR
WITHDRAWAL OF
LICENSE

Basic fine: 10,000

Submission is within sixty


(60) days after the
amendment becomes
effective.

13

3.2 NON-STOCK BRANCH OFFICE/ REPRESENTATIVE OFFICE


Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT
3.2.a. REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Section 141 of the CCP;
Memorandum Circular No. 15,
Series of 2006

VIOLATION
LATE FILING

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 141 of the CCP;


Memorandum Circular No. 15,
Series of 2006
GENERAL INFORMATION SHEETS
AND
ANNUAL FINANCIAL STATEMENTS

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

Total fine plus


10% of the total fine
computed

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

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements
Up to 100,000: 1,500
100,001 to 500,000: 3,000
500,001 to 10,000,0000: 5,000
10,000,001 to 100,000,000:
7,000
Above 100,000,000: 10,000

14

LEGAL BASIS/
SUBJECT REPORT
Section 68 of the SRC; SRC Rule 68

VIOLATION
MATERIAL DEFICIENCY

ANNUAL FINANCIAL STATEMENTS

Section 68 of the SRC; SRC Rule 68


ANNUAL FINANCIAL STATEMENTS

MATERIAL
MISSTATEMENT/
MISREPRESENTATION

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

An amount based on the


above scale or 1/10 of 1% of
the amount of misstatement,
whichever is higher

An amount based on the above


scale or 2/10 of 1% of the
amount of misstatement,
whichever is higher -

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

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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: 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

3.2. b. OTHER REQUIREMENTS


LEGAL BASIS/
REQUIREMENT
Memorandum Circular No. 15,
Series of 2006
AFFIDAVIT OF NON-OPERATION
Section 8 of CCP; Memorandum
Circular No. 15 Series of 2006

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

Basic fine: 10,000


Surcharge: 1,000 per month of
delay

Basic fine: 10,000


Surcharge: 1,000 per month of
delay

Basic fine: 10,000


Surcharge: 1,000 per month
of delay

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000

Basic fine: 5,000

LATE FILING OF PETITION


(to change, substitute or
add a Resident Agent)

SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT

Section 130 of CCP


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

NON-FILING OR LATE
FILING

Section 131 of CCP


PURPOSE

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

Submission is within sixty


(60) days after the
amendment becomes
effective.

16

3.3 REGIONAL OPERATING HEADQUARTERS


Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT

3.3.a. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines;
Memorandum Circular No. 15,
Series of 2006

VIOLATION
LATE FILING

GENERAL INFORMATION SHEETS


AND
ANNUAL 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

Total fine plus


10% of the total fine
computed

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

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 141 of the CCP;


Memorandum Circular No. 15,
Series of 2006

FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements

NON-FILING

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements
Up to 100,000: 2,500
100,001 to 500,000: 4,000
500,001 to 5,000,000: 6,000
5,000,001 to 10,000,000: 8,000
Above 10,000,000: 10,000

17

LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC;
SRC Rule 68
ANNUAL FINANCIAL STATEMENTS

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

An amount based on the above


scale or 1/10 of 1% of the
amount of misstatement,
whichever is higher

An amount based on the


above scale or 2/10 of 1% of
the amount of misstatement,
whichever is higher

An amount based on the


above scale or 4/10 of 1% of
the amount of
misstatement, whichever is
higher

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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: 2,0

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

3.3.b. OTHER REQUIREMENTS


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

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)

Basic fine of 10,000


Surcharge: 500 per month of
delay

n/a

n/a

Memorandum Circular No. 15,


Series of 2006
AFFIDAVIT NON-OPERATION

LATE FILING

1,250

2,500

5,000

NON-FILING

2,500

5,000

10,000

Section 131 of CCP

Changes in the corporate


name, purpose and
addition of purposes
without filing a petition to
amend license

Basic fine: 5,000.00

Basic fine: 5,000.00

Basic fine: 5,000.00

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

3.4. REGIONAL AREA HEADQUARTERS


Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT

3.4.a. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUBJECT REPORT
Section 141 of CCP; Memorandum
Circular No. 15 Series of 2006

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

Section 141 of CCP; Memorandum


Circular No. 15 Series of 2006

VIOLATION

NON-FILING

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

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)

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
computed

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

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

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

ANNUAL FINANCIAL STATEMENTS

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

20

LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC;
SRC Rule 68

VIOLATION
MATERIAL
MISSTATEMENT/
MISREPRESENTATION

ANNUAL FINANCIAL STATEMENTS

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 : 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000

3.4.b OTHER REQUIREMENTS


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

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

n/a

n/a

Failure to remit the


required amount within
the prescribed period
Basic fine of 10,000
Surcharge: 500 per month of
delay

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)

Basic Fine - .003 of the actual


remittance
Surcharge of 500
per month of delay

Basic Fine - .004 of the actual


remittance
Surcharge of 1,000 per month
of delay

Basic Fine - .005 of the


actual remittance
Surcharge of 1,500 per
month of delay

LATE FILING

1,250

2,500

5,000

NON-FILING

2,500

5,000

10,000

Basic fine: 5000.00

Basic fine: 5,000.00

Basic fine: 5,000.00

Failure to remit the


required amount within
the prescribed period

Annual Remittance of at least


US$50,000 or its equivalent in
other foreign currencies, converted
to Philippine currency (within 30
days from the anniversary date of
the issuance of the license)

Memorandum Circular No. 15 Series


of 2006
AFFIDAVIT OF NON-OPERATION

Section 131 of CCP


PURPOSE

Changes in the corporate


name, purpose and
addition of purposes
without filing a petition
to amend license

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

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 141 of the Corporation


Code of the Philippines (CCP)

THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed

Total fine plus


10% of the total fine
computed

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

GENERAL INFORMATION SHEETS


AND
ANNUAL FINANCIAL STATEMENTS

Section 68 of SRC; SRC Rule 68, as


amended

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

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements
Up to 100,000: 500
100,001 to 500,000 : 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000: 3,500
Above 10,000,000 : 5,000

MATERIAL DEFICIENCY

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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

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

ANNUAL FINANCIAL STATEMENTS

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

23

LEGAL BASIS/
SUBJECT REPORT

Sec. 68 of the SRC; SRC Rule 68


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

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

An amount based on the


above scale or 1/10 of 1% of
the amount of misstatement,
whichever is higher

An amount based on the above


scale or 2/10 of 1% of the
amount of misstatement,
whichever is higher

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

The basis of penalty is the


"Total Assets" reported in the
Latest Financial Statements

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

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

MATERIAL
MISSTATEMENT/
MISREPRESENTATION

ANNUAL FINANCIAL STATEMENTS

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

4.2. OTHER REQUIREMENTS


LEGAL BASIS/
REQUIREMENT
Section 16 of CCP
CORPORATE NAME

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

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

ELECTION OF A SECRETARY WHO


IS NOT A FILIPINO CITIZEN OR A
RESIDENT OF THE PHILIPPINES
Section 46 of CCP
BY-LAWS

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.

10,000 plus daily penalty and


for blacklisting and revocation
of primary franchise (for
continuous non-compliance)

n.a.

n.a.

NON-HOLDING OF MEETING
MEMBERSHIP BOOK

LATE FILING OF
MEMBERSHIP BOOK

B. REGISTERED CORPORATIONS WITH SECONDARY LICENSE


(5) LENDING COMPANIES
Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
5.1. LICENSING REQUIREMENT
LEGAL BASIS/
SUBJECT REPORT
Section 4 of LCRA of 2007; Rule
3(b) of its IRR

Sec. 4 of LCRA of 2007; Rule 3(b)


of its IRR
CERTIFICATE OF AUTHORITY (CA)
FOR HEAD OFFICE

VIOLATION
Engaging in Lending
Activities without
Registration as
Corporation
Operating a Lending
Company Head Office
without a Certificate of
Authority from SEC

27

Sec. 4 of LCRA of 2007; Rule 3(c)


of its IRR
CA FOR BRANCH OFFICE

5.2.

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

10,000 plus 100 daily penalty

15,000 plus 100 daily penalty

Suspension of CA

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

25,000 plus 100 daily penalty

30,000 plus 100 daily penalty

Suspension of CA

MATERIAL
MISSTATEMENT OR
MISREPRESENTATION IN
THE AFS

1/10 of 1% of the amount of


misstatement

1/20 of 1% of the amount of


misstatement

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

MATERIAL DEFICIENCY

1,000 or 500 per material


deficiency,
whichever is higher

2,000 or 1,000 per material


deficiency,
whichever is higher

4,000 or 2,000 per material


deficiency,
whichever is higher

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

15,000 plus 100 daily penalty

Suspension of CA

INTERIM FINANCIAL
STATEMENTS

NON-FILING

Sections 68 and 54 of SRC

MATERIAL
MISSTATEMENT OR
MISREPRESENTATION

10,000 per FS or 500 per


material deficiency,
whichever is higher

15,000 per FS or P1,000 per


material deficiency,
whichever is higher

30,000 per FS or 2,000 per


material deficiency,
whichever is higher

MATERIAL DEFICIENCY

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

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

20,000 plus 100 daily penalty

25,000 plus 100 daily penalty

Suspension of CA

LATE FILING

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fines computed

Total fine plus


15% of the total fine
computed

INTERIM FINANCIAL
STATEMENTS

Sec. 9 of LCRA of 2007; Rule 8(a)


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

Section 141 of the CCP


GENERAL INFORMATION SHEET

10,000 plus 100 daily penalty

SECOND OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily

29

LEGAL BASIS/
SUBJECT REPORT

Section 141 of CCP

VIOLATION

NON-FILING

GENERAL INFORMATION SHEET

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)

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
Computed

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

15,000 plus 100 daily penalty

Suspension of CA

15,000

20,000

Rule 17.1(2)(c) of the Amended


IRR of SRC
QUARTERLY REPORT FOR
ISSUERS OF COMMERCIAL
PAPERS

LATE FILING

NON-FILING
INCOMPLETE REPORT

10,000 plus 100 daily penalty


10,000

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

5.3. OPERATIONAL, PRUDENTIAL, OTHER REQUIREMENTS


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

Sec. 9 of LCRA of 2007; Rule


3(d)(ii) of its IRR

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

Sec. 7 of LCRA of 2007; Rule 6(b)


of its IRR, SEC MC 7, S. of 2011
DISCLOSURE STATEMENT

30,000 plus 100 per day of


continuing violation

31

LEGAL BASIS/
SUBJECT REPORT

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

Sec. 9 of LCRA of 2007; Rule 8(a)


of its IRR; Sections 54 and 68 of
SRC

FAILURE TO ENGAGE THE


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

25,000

50,000

100,000

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

1% of the amount of credit


extended in excess of 15% of
the companys networth

3% of the amount of credit


extended in excess of 15% of
the companys networth

Suspension of CA

BREACH OF LIMIT

1% of the amount of credit


extended in excess of 30% of
the companys networth

3% of the amount of credit


extended in excess of 30% of
the companys networth

Suspension of CA

ACCREDITATION
OF EXTERNAL AUDITOR

Sec.9 of LCRA of 2007; Rule 3(g) of


its IRR
INVESTMENT IN REAL ESTATE
SHALL NOT EXCEED 25% OF THE
COMPANYS NETWORTH
Sec. 9 of LCRA of 2007; Rule 3(h)
TOTAL CREDIT EXTENDED TO THE
COMPANYS DIRECTORS,
OFFICERS, STOCKHOLDERS AND
RELATED INTERESTS (DOSRI)
SHALL NOT EXCEED 15% OF THE
COMPANYS NETWORTH
Sec 9 of LCRA of 2007; Rule 3(i) of
its IRR
TOTAL CREDIT EXTENDED TO ANY
PERSON, WHETHER INDIVIDUAL,
PARTNERSHIP OR CORPORATION
(SINGLE BORROWER LIMIT)
SHALL NOT EXCEED 30% OF THE
COMPANYS NETWORTH

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)

PRESCRIBED RATIO NOT


MET

1% of the amount of deficiency

3% of the amount of deficiency

Suspension of CA

MISREPRESENTATION OR
MISSTATEMENT

20,000

P30,000

Suspension of CA

1% of the amount of deficiency

3% of the amount of deficiency

Suspension of CA

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

MORE THAN 50% OF THE FUNDS


MUST BE USED IN LENDING
ACTIVITIES
Sec 12 of LCRA of 2007; Rule 10 of
its IRR
INFORMATION IN THE IN ANY
APPLICATION FOR, PERSONAL
INFORMATION SHEET, REPORTS,
AND OTHER DOCUMENTS
REQUIRED TO BE SUBMITTED TO
THE COMMISSION (OTHER THAN
AFS AND INTERIM FS)
Sec. 5 of LCRA of 2007; Rule 4 of
its IRR
MINIMUM REQUIRED CAPITAL

Corporation Code of the


Philippines (CCP)

Failure to comply with


the required capital
and/or maintain a net
worth of not less than
the minimum required
Paid-up Capital
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP

REQUIREMENTS FOR A STOCK


CORPORATION

33

(6) FINANCING COMPANIES


Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
6.1. LICENSING REQUIREMENT
LEGAL BASIS

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

SEC 2 of the IRR of the Financing


Company Act (FCA)

Engaging in Financing
Activities without
Certificate of Authority

Sec. 7(c) of FCA of 1998; Sec 4& 5,


IRR

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

20,000 plus 100 per day

30,000 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

20,000 plus 100 per day

40,000 plus 100 per day

60,000 plus 100 per day

CERTIFICATE OF AUTHORITY (CA)


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

6.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUBJECT REPORT
Section 13(b), IRR
AUDITED FINANCIAL STATEMENTS

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 or 1/10 of 1% of the


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

40,000 or 1/30 of 1% of the


amount of misstatement,
whichever is higher

10,000

20,000

30,000

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68
Sections 54 and 68 of SRC

LATE-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

SPECIAL FORM OF FINANCIAL


STATEMENTS

NON-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

1,000

2,000

4,000

LATE FILING

10,000 plus 100 per day

15,000 plus 100 per day

20,000 plus 100 per day

NON-FILING

10,000 plus 100 per day

15,000 plus 100 per day

20,000 plus 100 per day

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

SEC MC No. 3, S. of 2007

LATE FILING

10,000 plus 100 per day

15,000 plus 100 per day

20,000 plus 100 per day

INTERIM FINANCIAL STATEMENTS


(from January 2008 to present)

NON-FILING

15,000 plus 100 per day

20,000 plus 100 per day

25,000 plus 100 per day

MATERIAL DEFICIENCY

10,000 per FS or 500 per


material deficiency,
whichever is higher1

15,000 per FS or 1,000 per


material deficiency,
whichever is higher1

30,000 per FS or 2,000 per


material deficiency,
whichever is higher1

MATERIAL
MISSTATEMENT OR
MATERIAL
MISREPRESENTATION

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


amount of misstatement,
whichever is higher1

15,000 or 1/20 of 1% of the


amount of misstatement,
whichever is higher1

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


amount of misstatement,
whichever is higher1

10,000

20,000

30,000

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fines computed

Total fine plus


15% of the total fine
Computed

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68
Section 141 of the CCP
GENERAL INFORMATION SHEET

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

Section 141 of CCP

VIOLATION

NON-FILING

GENERAL INFORMATION SHEET

FIRST OFFENSE
(Amounts in Pesos)
3,500
Above 10,000,000: 5,000

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
Computed

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

Revised Code on Corporate


Governance

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

Revised Code on Corporate


Governance

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

25,000 plus 100 daily penalty

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

25,000 plus 100 daily penalty

30,000 plus 100 daily penalty

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

10,000 plus 100 per day

20,000 plus 100 per day

40,000 plus 100 per day

ANNUAL INFORMATION
STATEMENT FOR ISSUER OF
COMMERCIAL PAPERS

NON-FILING

30,000 plus 100 per day

40,000 plus 100 per day

50,000 plus 100 per day

INCOMPLETE REPORT

10,000 plus 100 per day

20,000 plus 100 per day

40,000 plus 100 per day

Sec. 17.1 of SRC; SRC Rule 17.1.2.C

LATE FILING

5,000 plus
100 daily penalty

10,000 plus
100 daily penalty

Suspension of CA

QUARTERLY REPORT FOR ISSUERS


OF COMMERCIAL PAPERS

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

6.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 5(b)/6d, IRR

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

10,000 plus 100 per day

20,000 plus 100 per day

30,000 plus 100 per day

ANNUAL FEE

NON-PAYMENT

20,000 plus 100 per day

30,000 plus 100 per day

40,000 plus 100 per day

Section 9(a), IRR

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

1% of the amount of credit


extended in excess of 15% of
the companys networth

2% of the amount of credit


extended in excess of 15% of
the companys networth

6% of the amount of credit


extended in excess of 15% of
the companys networth

TOTAL CREDIT EXTENDED


TO A SINGLE BORROWER
EXCEEDS LIMITS

1% of the amount of credit


extended in excess of 30% of
the companys networth

2% of the amount of credit


extended in excess of 30% of
the companys networth

6% of the amount of credit


extended in excess of 30% of
the companys networth

INVESTMENT IN REAL ESTATE


SHALL NOT EXCEED 25% OF THE
COMPANYS NETWORTH
Section 9(b), IRR
INVESTMENT OF MORE THAN 50%
OF FUNDS MUST BE USED IN
FINANCING ACTIVITIES
Section 9(d), IRR
TOTAL CREDIT EXTENDED TO ANY
PERSON, CORPORATION OR FIRM
SHALL NOT EXCEED 30% OF THE
COMPANYS NETWORTH (SINGLE
BORROWER LIMIT)

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

SEC MC No. 7, S. of 2011


PROVIDE A DISCLOSURE
STATEMENT TO A BORROWER

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

FAILURE TO SET UP 100%


ALLOWANCE FOR
PROBABLE LOSSES
DESPITE PRESENCE OF

1% of the amount of
deficiency

2% of the amount of deficiency

6% of the amount of
deficiency

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

1% of the amount of
deficiency

2% of the amount of deficiency

6% of the amount of
deficiency

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

25,000 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

Corporation Code of the


Philippines (CCP)

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

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

REQUIREMENTS FOR A STOCK


CORPORATION

(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

Sections 8 and 12 of the Securities Selling or distribution of


Regulation Code (SRC);
securities to the public
without prior registration or
permit to sell

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

5% of the amount of each


transaction or 10,000 per
transaction but not less than
300,000.

7% of the amount of each


transaction or 20,000 per
transaction but not less than
600,000.

10% of the amount of each


transaction or 60,000 per
transaction but not less than
1,000,000.

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

5% of the amount of each


transaction or 10,500 per
transaction but not less than
300,000.

7% of the amount of each


transaction or 21,000 per
transaction but not less than
600,000.

10% of the amount of each


transaction or 63,000 per
transaction but not less than
1,000,000.

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

For listed companies:


20,000 plus
100 per day of delay

For listed companies:


40,000 plus
200 per day of delay

For listed companies:


120,000 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.

EXEMPTION FROM REGISTRATION OF SECURITIES


LEGAL BASIS/
REQUIREMENTS

Section 10 of SRC; SRC Rule 10.1


FILING OF NOTICE OF
EXEMPTION PURSUANT TO SRC
RULE 10.1 (K AND L)

VIOLATION

LATE FILING OF NOTICE

42

LEGAL BASIS/
REQUIREMENTS

VIOLATION

NON-COMPLIANCE WITH
THE DISCLOSURE
REQUIREMENTS UNDER
SRC RULE 10.1

Section 10.2 of SRC

LATE FILING OF REPORT

FILING OF REPORT SHOWING


NAMES OF OPTIONEES AND
NUMBER OF SHARES SUBSCRIBED
AND AMOUNT PAID
NON-FILING OF REPORT

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

For listed companies:


21,000 plus
500 per day of delay

For listed companies:


42,000 plus
700 per day of delay

For listed companies:


120,000 plus
1,000 per day of delay

10,000 plus 100 per day


of delay in filing the report

15,000 plus 150 per day


of delay in filing the report

25,000 plus 250 per day


of delay in filing the report

For listed companies:


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

For listed companies:


30,000 plus 150 per day
of delay in filing the report

For listed companies:


50,000 plus 250 per day
of delay in filing the report

50,000 plus 200 per day


of delay in filing the report

100,000 plus 300 per day


of delay in filing the report

150,000 plus 500 per day


of delay in filing the report

For listed companies:


100,000 plus 200 per day
of delay in filing the report

For listed companies:


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

For listed companies:


200,000 plus 500 per day
of delay in filing the report

43

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


LEGAL BASIS/
REQUIREMENTS
Section 14 of SRC; SRC Rule 14
AMENDMENT OF REGISTRATION
STATEMENT TO REFLECT A
MATERIAL CHANGE

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

5% of the amount of each sale 7% of the amount of each sale in


in excess of the authorized
excess of the authorized shares
10% of the amount of each
shares or price, or 10,500 per
or price, or 21,000 per
sale in excess of the
transaction, whichever is
transaction, whichever is higher, authorized shares or price, or
higher, plus 100 per day of
plus 200 per day of delay of filing
63,000 per transaction,
delay of the filing of the
of the amendment.
whichever is higher,
amendment
plus 600 per day of delay of
the filing of the amendment.
10,500 plus
100 per day of delay

21,000 plus
200 per day of delay

63,000 plus
600 per day of delay

44

7.4. GENERAL REPORTORIAL REQUIREMENTS


(FOR ISSUERS OF SECURITIES, MUTUAL FUNDS, EXCHANGE TRADED FUNDS AND PUBLIC COMPANIES)
LEGAL BASIS/
REPORT
Section 17.1 of SRC;
SRC Rule 17.1 (1)(A)(iii)

VIOLATION

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

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

0.0003% of the maximum


0.0006% of the maximum
0.0008% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 20,000, whichever is higher
30,000, whichever is higher
shares or 40,000, whichever
plus 100 per day of delay
plus 200 per day of delay
is higher
plus 400 per day of delay

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

0.0006% of the maximum


0.0008% of the maximum
0.001% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 40,000, whichever is higher
50,000, whichever is higher
shares or 60,000, whichever
plus 200 per day of delay
plus 300 per day of delay
is higher
plus 500 per day of delay

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

0.0005% of the maximum


0.001 of the maximum
0.002% of the maximum
aggregate amount of the total
aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 30,000, whichever is higher
50,000, whichever is higher
shares or 70,000, whichever
plus 200 per day of delay
plus300 per day of delay
is higher
Plus 600 per day of delay

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

0.001% of the maximum


0.002% of the maximum
0.003% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 50,000, whichever is higher
100,000, whichever is higher
shares or 150,000,
Plus 400 per day of delay
Plus 600 per day of delay
whichever is higher
Plus 1,000 per day of delay

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)

10,000 plus 200 per day


until a complete report is filed

30,000 plus 300 per day


until a complete report is filed

50,000 plus 600 per day


until a complete report is
filed

MATERIAL DEFICIENCY IN
THE INTERIM FS

10,000 per AFS or 5,000 for


each material deficiency,
whichever is higher

20,000 per AFS or 10,000 for


each material deficiency,
whichever is higher

40,000 per AFS or 20,000 for


each material deficiency,
whichever is higher

MATERIAL MISSTATEMENT
OR MISREPRESENTATION
IN THE INTERIM FS

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

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)

0.001% of the maximum


0.002% of the maximum
0.004% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 50,000, whichever is higher
100,000, whichever is higher
shares or 200,000,
Plus 200 per day of delay
plus
whichever is higher
500 per day of delay
plus
1,000 per day of delay

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

0.005% of the maximum


0.01% of the maximum
0.02% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 200,000, whichever is higher 300,000, whichever is higher
shares or 400,000,
Plus 500 per day of delay
Plus 1,000 per day of delay
whichever is higher
Plus 1,000 per day of delay

ANNUAL REPORT

46

LEGAL BASIS/
REPORT

VIOLATION

INCOMPLETE
ANNUAL REPORT
(SEC FORM 17-A)

Section 68 of SRC; SRC Rule 68


AUDITED FINANCIAL
STATEMENTS

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)

20,000 plus 200 per day


until a complete report is filed

40,000 plus 500 per day


until a complete report is filed

65,000 plus 1,000 per day


until a complete report is
filed

10,000 for each material


deficiency

20,000 for each material


deficiency

40,000 for each material


deficiency

10,000 or

20,000 or

30,000 or

1/10 of 1% of the amount of


misstatement, whichever is
higher

1/20 of 1% of the amount of


misstatement, whichever is
higher

1/30 of 1% of the amount of


misstatement, whichever is
higher

P10,000

20,000

30,000

0.0003% of the maximum


0.0006% of the maximum
0.0008% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 50,000, whichever is higher,
100,000, whichever is higher,
shares or 200,000,
plus
plus 500 per day of delay
whichever is higher plus
200 per day of delay
1,000 per day of delay

47

LEGAL BASIS/
REPORT

VIOLATION

THIRD OFFENSE
(Amounts in Pesos)

0.0006% of the maximum


0.0008% of the maximum
0.001% of the maximum
aggregate amount of the total aggregate amount of the total
aggregate amount of the
issued and outstanding shares issued and outstanding shares or total issued and outstanding
or P100,000, whichever is
200,000, whichever is higher plus
shares or 400,000,
higher plus
1,000 per day of delay
whichever is higher plus
400 per day of delay
2,000 per day of delay

INCOMPLETE
INFORMATION
STATEMENT
(SEC FORM 20-IS)

20,000.00 plus 200 per day of


delay of filing an amended
statement

40,000.00 plus 500 per day of


delay of filing an amended
statement

80,000.00 plus 1,000 per day


of delay of filing an amended
statement

25,000 plus 200 per day


of continuing violation

50,000 plus 500 per day


of continuing violation

100,000 plus 1,000 per day


of continuing violation

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

Section 17.1 of SRC; SRC Rule 17.1 LATE FILING OF NOTICE


NOTICE OF SUSPENSION TO FILE
REPORTS (SEC FORM 17-EX)

SECOND OFFENSE
(Amounts in Pesos)

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

FAILURE TO COMPLY WITH


ANY OF THE OTHER
PROCEDURAL
REQUIREMENTS OF
SRC RULE 20

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

In instances where the company conducted a meeting.

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)

LATE FILING OF REPORT

1% of the amount of each


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

2% of the amount of each


transaction, or 20,000 per
transaction, whichever is higher
plus 200 per day of delay

3% of the amount of each


transaction, or 30,000 per
transaction, whichever is
higher plus 300 per day of
delay

NON-FILING OF REPORT

2% of the amount of each


purchase or disposition, or
20,000 per transaction
whichever is higher plus 200
per day of delay

3% of the amount of each


transaction, or 40,000 per
transaction, whichever is higher
plus 300 per day of delay

4% of the amount of each


transaction, or 60,000 per
transaction, whichever is
higher plus 500 per day of
delay

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

Section 23 of SRC; SRC Rule 23

INCOMPLETE REPORT

10,000 plus 100 per day of


delay of the submission of
the amended report

LATE FILING OF
STATEMENT

1% of the amount of each


purchase or disposition, or
10,000 per transaction
whichever is higher plus
P100 per day of delay

2% of the amount of each


transaction, or 20,000 per
transaction, whichever is higher
plus 200 per day of delay

3% of the amount of each


transaction, or 30,000 per
transaction, whichever is
higher plus 300 per day of
delay

NON-FILING OF
STATEMENT

2% of the amount of each


purchase or disposition, or
20,000 per transaction
whichever is higher plus 200
per day of delay

3% of the amount of each


transaction, or 40,000 per
transaction, whichever is higher
plus 300 per day of delay

4% of the amount of each


transaction, or 60,000 per
transaction, whichever is
higher plus 500 per day of
delay

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)

10,000 plus 100 per day of


delay of the submission of
the amended report

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

10,000 plus 100 per day of


delay in the submission of
the report

20,000 plus 200 per day of delay in


the submission of the report

30,000 plus 300 per day of


delay in the submission of
the report

LATE FILING OF A REPORT


SHOWING MORE THAN 100
SHARES BUT LESS THAN 5%
OF THE OUTSTANDING
EQUITY SECURITIES

20,000 plus 100 per day of


delay in the submission of
the report

30,000 plus 200 per day of delay in


the submission of the report

50,000 plus 300 per day of


delay in the submission of
the report

LATE FILING OF A REPORT


SHOWING MORE THAN 5%
BUT LESS THAN 10%

30,000 plus 100 per day of


delay in the submission of
the report

40,000 plus 200 per day of delay in


the submission of the report

60,000 plus 300 per day of


delay in the submission of
the report

Section 19.1 of SRC; SRC Rule 19.1 LATE FILING OF TENDER


OFFER REPORT (SEC FORM
TENDER OFFER REQUIREMENTS 19-1)

52,500 plus 500 per day of


delay
of filing the report

105,000 plus 1,000 per day of


delay
of filing the report

210,000 plus 2,000 per day


of delay
of filing a the report

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

100,000 plus 500 per day of


delay of filing the report

200,000 plus 1,000 per day of


delay of filing the report

400,000 plus 2,000 per day


of delay of filing a the
report

Section 23 of SRC; SRC Rule 23

LATE FILING OF A REPORT


SHOWING QUALIFYING
BENEFICIAL OWNERSHIP REPORT SHARES (NOT MORE THAN
OF DIRECTORS AND OFFICERS
100 SHARES)

50

LEGAL BASIS/
REPORT

Section 54 of the Securities


Regulation Code

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

INCOMPLETE TENDER
OFFER REPORT
(SEC FORM 19-1)

31,500 plus 500 per day of


delay of filing the amended
report

63,000 plus 1,000 per day of delay


of filing the amended report

130,000 plus 2,000 per day


of delay of filing the
amended report

FAILURE TO CONDUCT A
TENDER OFFER

105,000 or 0.01% of the


aggregate amount of the
tender offer, whichever is
higher, plus 500 per day of
continuing violation

210,000 or 0.02% of the aggregate


amount of the tender offer,
whichever is higher, plus 1,000 per
day of continuing violation

315,000 or 0.06% of the


aggregate amount of the
tender offer, whichever is
higher, plus 2,000 per day
of continuing violation

FAILURE TO COMPLY WITH


ANY OTHER
REQUIREMENTS OF SRC
RULE 19-1 AND RELATED
GUIDELINES

52,500 plus 500 per day of


continuing violation

105,000 plus 1,000 per day of


continuing violation

210,000 plus 2,000 per day


of continuing violation

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)

FAILURE TO ENGAGE THE


SERVICES OF AN EXTERNAL
AUDITOR WITHOUT A
GROUP A ACREDITATION

100,000

200,000

400,000

FAILURE TO OBSERVE THE


PRESCRIBED PERIODS
UNDER THE RULES AND
CIRCULAR

50,000 plus
200 per day of
Violation

100,000 plus
500 per day of
Violation

150,000 plus
1,000 per day of
Violation

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

Sections 22 & 23 of ICA;


ICA Rule 35-1 (e)

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

52,500 plus
300 per day of
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

Sections 25, 27 and 30 of ICA; ICA FAILURE TO SUBMIT


Rule 35-1(e)(3);
REQUIRED REPORTS
AND/OR TO PUBLISH DAILY
PRICES

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

ICA Rule 35-1(d);


Section 7.5 of ETF Rules

VIOLATION OF RECITED
INVESTMENT OBJECTIVES
AND RESTRICTIONS

25,000 plus
100 per day of
continuing violation

50,000 plus
300 per day of
continuing violation

100,000 plus
600 per day of
continuing violation

ICA Rule 35-1(c)(2);


ETF Rules Section 17.1

NON-DEPOSIT OF SALES
PROCEEDS TO A
CUSTODIAN BANK

10,500 plus
300 per day of
continuing violation

21,000 plus
500 per day of
continuing violation

52,500 plus
600 per day of
continuing violation

ICA Rule 35-1(c)(3)

REDEMPTION OF ORIGINAL
CAPITAL FOR LESS THAN 12
MONTHS

10,000 per redemption

20,000 per redemption

30,000 per redemption

ICA Rule 35-1(i)(2);


Section 27.1(a) of ETF Rules

LATE FILING OF MONTHLY


SALES/REDEMPTION
REPORT

10,000 plus
100 per day of
continuing violation

20,000 plus
200 per day of
continuing violation

30,000 plus
400 per day of
continuing violation

ICA Rule 35-1(i)(2);


ETF Rules Section 27.1(a)

NON-FILING OF MONTHLY
SALES/REDEMPTION
REPORT

20,000 plus
200 per day of
continuing violation

30,000 plus
300 per day of
continuing violation

60,000.00 plus
600 per day of
continuing violation

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


ETF Rules Section 26

FAILURE TO EFFECT
REDEMPTION REQUEST
WITHIN 7 BANKING DAYS

10,000 per redemption

20,000 per redemption

30,000 per redemption

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

FAILURE TO REGISTER AS
AN INVESTMENT
COMPANY ADVISER

50,000

75,000

100,000

54

7.8.

ADDITIONAL REQUIREMENTS FOR EXCHANGE TRADED FUNDS ONLY


LEGAL BASIS

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

Sections 8(4) and (5) of ETF Rules

FAILURE TO PUBLISH/
UPLOAD DAILY
PRICES/NAV/INAV

10,000 plus
100 per day of
continuing violation

20,000 plus
200 per day of
continuing violation

30,000 plus
400 per day of
continuing violation

Section 23 of ETF Rules

FAILURE TO
PUBLISH/UPLOAD ON A
DAILY BASIS THE
INFORMATION ON THE
INDEX AND PROTFOLIO
HOLDINGS

P10,000 plus
100 per day of
continuing violation

P20,000 plus
P200 per day of
continuing violation

P30,000 plus
P400 per day of
continuing violation

(8) INVESTMENT COMPANY ADVISERS/MUTUAL FUND DISTRIBUTORS


Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
8.1. LICENSING REQUIREMENT
LEGAL BASIS

VIOLATION

ICA Rule 35-1 (g) (1)

FAILURE TO REGISTER AS
AN INVESTMENT
COMPANY ADVISER

Section 28.1, SRC

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

Section 40 of the Investment


Company Act

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)

8.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUJBECT REPORT
GENERAL INFORMATION SHEET
(GIS)

ANNUAL AUDITED FINANCIAL


STATEMENTS (AFFS)

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

See applicable violations


for stock corporations

See applicable violations for stock


corporations

See applicable violations


for stock corporations

10,000 plus 100/day of


delay

15,000 plus 100/day of delay

20,000
plus 100/day of delay

10,000 basic penalty Plus


100/day of delay

30,000 basic penalty Plus


200/day of delay

50,000 basic penalty Plus


300/day of delay

OTHER VIOLATIONS
RELATING TO THE AAFS
SRC Rule 28.1-1.E.2.xiii
SEC FORM ICA-IA (CHANGE IN
INFORMATION)

FAILURE TO NOTIFY ANY


CHANGE IN
INFORMATION WITHIN
SEVEN (7) DAYS FROM
THE DATE OF THE
OCCURRENCE OF THE
EVENT

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)

FAILURE TO NOTIFY THE


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

10,000 basic penalty Plus


100/day of delay

30,000 basic penalty Plus


200/day of delay

50,000 basic penalty Plus


300/day of delay

SEC FORM ICA-CIS

FAILURE TO REPORT ANY


CHANGE IN
INFORMATION IN SEC
FORM ICA CIS

10,000 Plus 100/day of


delay

30,000 Plus 200/day of delay

50,000 Plus 300/day of


delay

SEC FORM ICA-CO/AP

FAILURE TO REPORT ANY


CHANGE IN
INFORMATION IN SEC
FORM ICA CO

10,000 Plus 100/day of


delay

30,000 Plus 200/day of delay

50,000 Plus 300/day of


delay

SEC FORM MFD

FAILURE TO REPORT ANY


CHANGE IN SEC FORM
MFD

10,000 basic penalty Plus


100/day of delay

30,000 basic penalty Plus


200/day of delay

50,000 basic penalty Plus


300/day of delay

SEC FORM ICA-T

8.3. OTHER REQUIREMENTS


LEGAL BASIS/
REQUIREMENT
ICA Rule 35-1 (g) (1)-A

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 :

SRC Rule 28.1-1 (E) (vi)

FAILURE TO REGISTER AS
BRANCH OFFICE

SRC Rule 28.1-4

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

9.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUBJECT REPORT
SRC Rule 52.1-5

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

ANNUAL AUDITED FINANCIAL


STATEMENT (AAFS)
SEC Form 52 AR
Sections 54 and 68 of SRC;
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

MATERIAL DEFICIENCY

10,000 per AFS or P1,000


per material deficiency,
whichever is higher1

20,000 per AFS or 2,000 per


material deficiency,
whichever is higher1

30,000 per AFS or 3,000 per


material deficiency,
whichever is higher1

MATERIAL
MISSTATEMENT OR
MISREPRESENTATION

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

10,000

20,000

30,000

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

OTHER NON-COMPLIANCE
WITH THE
REQUIREMENTS OF SRC
RULE 68
Sections 54 and 68 of SRC

LATE-FILING

SPECIAL FORM OF FINANCIAL


STATEMENTS

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

LATE FILING OF RBCA


REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.

10,000 Plus 100/day of


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

30,000 Plus 200/day of delay

50,000 Plus 200/day of delay

SRC Rule 49.1-1

FAILURE TO SUBMIT RBCA


REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.

25,000

50,000

100,000

SRC Rule 28.1-1 (E) (xiii)

FAILURE TO REPORT
AMENDMENT

SEC Memorandum Circular No.


16 series of 2004

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

SEC Form 28-BDA


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

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

FAILURE TO REPORT ANY


CHANGE IN
INFORMATION IN SEC
FORM 28-S AND SEC
FORM 28-AP

10,000
Plus 100/day of delay

30,000
Plus 200/day of delay

50,000
Plus 300/day of delay

Rules Governing the Trading of


PSE Shares

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

50,000

75,000

100,000

Section 141 of the CCP


GENERAL INFORMATION SHEET

LATE FILING

The basis of the penalty is


the Total Assets reported
in the latest Financial
Statements

Total fine plus


10% of the total fines
computed

Total fine plus


15% of the total fine
Computed

FAILURE TO TIMELY FILE


THE REPORT

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

Revised Code on Corporate


Governance

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

GENERAL INFORMATION SHEET

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

Anti-Money Laundering Act, as


amended

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

ANY VIOLATION OF THE


REVISED CODE OF
CORPORATE
GOVERNANCE (RCCG)

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

LATE FILING OF THE


ANNUAL CORPORATE
GOVERNANCE REPORT

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

FAILURE TO SUBMIT ANY


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

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

Revised Code on Corporate


Governance
CERTIFICATION BY THE
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily

Suspension of CA

NON-FILING

25,000
plus 100 daily penalty

30,000
plus 100 daily penalty

Suspension of CA

Revised Code on Corporate


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

NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

10,000

20,000

Suspension of CA

9.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 24.1 (b)-1

SRC Rule 24.1 (d)-1

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

BD 100,000 AP/S 50,000

BD 150,000 AP/S 75,000

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

SRC Rule 24.1 (d)-3

VIOLATION OF PAYMENT
TO INFLUENCE MARKET
PRICES RULE

BD 100,000
AP/S 50,000

BD 150,000 AP/S 75,000

BD 200,000 AP/S
100,000

SRC Rule 24.2-2

VIOLATION OF SHORT
SALES RULE

BD 50,000
AP/S 25,000

BD 100,000
AP/S 50,000

BD 150,000
AP/S 75,000

SRC Rule 24.2-3

VIOLATION OF
PROHIBITION ON
GUARANTEES AGAINST
LOSS RULE

BD 50,000
AP/S 25,000

BD 100,000
AP/S 50,000

BD 150,000
AP/S 75,000

SRC Section 25

VIOLATION OF
REGULATION OF OPTION
TRADING RULE

50,000

75,000

100,000

SRC Section 26

VIOLATION OF
FRAUDULENT
TRANSACTIONS RULE

BD 100,000
AP/S 50,000

BD 150,000
AP/S 75,000

BD 200,000
AP/S 100,000

SRC Rule 26.3-1

VIOLATION OF THE USE


OF INFORMATION
OBTAINED IN FIDUCIARY
CAPACITY
RULE

25,000

50,000

100,000

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

SRC Rule 28.1-1 (E) (viii)

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

SRC Rule 30.2-1

VIOLATION OF THE
ETHICAL STANDARDS
RULE

25,000

50,000

100,000

SRC Rule 30.2-2

VIOLATION OF
CUSTOMER ORDERS RULE

10,000

30,000

50,000

SRC Rule 30.2-3

VIOLATION OF CLIENT
AGREEMENT RULE

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

SRC Rule 30.2-5

SRC Rule 30.2-6

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

SEC Rule 32.1

PROHIBITION ON
TRADING OF
UNREGISTERED
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET

BD 100,000
AP/S 50,000

BD 150,000
AP/S 75,000

BD 200,000
AP/S 100,000

SRC Rule 32.2 (a)

VIOLATION OF BEST
EXECUTION RULE

BD 50,000
AP/S 25,000

BD 75,000
AP/S 50,000

BD 100,000
AP/S 75,000

SRC Rule 34.1-1

VIOLATION OF
CUSTOMER FIRST POLICY

25,000

50,000

100,000

SRC Rule 34.1-2

VIOLATION OF CHINESE
WALLS POLICY

25,000

50,000

100,000

SRC Rule 48.1

VIOLATION OF MARGIN
REQUIREMENT
RULE

10,000

30,000

50,000

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)

BELOW MINIMUM NET


LIQUID CAPITAL OF P5M
OR P2.5M OR 5% OF
AGGREGATE
INDEBTEDNESS
WHICHEVER IS HIGHER;
IN THE CASE OF BROKER
DEALERS R PROPRIETARY
SHARES, BELOW
MINIMUM NET LIQUID
CAPITAL OF P 2.5M or
2.5% OF AGGREGATE
INDEBTEDNESS
WHICHEVER IS HIGHER

Suspension of Operations

Suspension of Operations

Suspension of Operations

IF RBCA RATIO IS BELOW


1.1

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

10,000 plus 100/day of


violation

30,000 plus 200/day of


violation

50,000 plus 300/day of


violation

FAILURE TO SUBMIT
REPORTS WHICH REFLECT
RBCA RATIO AND RBCA
MARGIN UPON REQUEST

10,000 plus 100/day of


violation

30,000 plus 200/day of


violation

50,000 plus 300/day of


violation

AGGREGATE
INDEBTEDNESS IN EXCESS
OF 1700% OF ITS NLC

10,000 plus 100/day of


violation

30,000 plus 200/day of


violation

50,000 plus 300/day of


violation

CORE EQUITY GREATER


THAN OPERATIONAL RISK
REQUIREMENT IS
BERACHED

10,000 plus 100/day of


violation

30,000 plus 200/day of


violation

50,000 plus 300/day of


violation

NON-COMPLIANCE WITH
THE MINIMUM
UNIMPAIRED PAID-UP
CAPITAL

10,000 plus 100/day of


violation

30,000 plus 200/day of


violation

50,000 plus 300/day of


violation

NON-SUBMISSION OF
CAPITAL BUILD-UP PLAN

10,000 plus 100/day of


violation

30,000 plus 200/day of


violation

50,000 plus 300/day of


violation

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

NOT USING THE


REQUIRED FORMAT

10,000

30,000

50,000

SRC Rule 49.1-1(H)

VIOLATION OF
LIMITATION ON
WITHDRAWAL OF EQUITY
CAPITAL

10,000

30,000

50,000

SRC Rule 49.2

VIOLATION OF
CUSTOMER PROTECTION
RESERVES & CUSTODY OF
SECURITIES RULE

10,000

30,000

50,000

SRC Rule 49.2-4

VIOLATION OF SPECIAL
RESERVE BANK ACCOUNT
RULE

10,000

30,000

50,000

SRC Rule 49.3

VIOLATION OF LENDING
AND VOTING CUSTOMERS
SECURITIES RULE

10,000

30,000

50,000

AND/OR FAILURE TO
EFFECT PROPOSAL
(MEASURES TO BE TAKEN)
WITHIN 10 DAYS

71

LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 50

SRC Rule 52.1-1

SRC Rule 52.1-2

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)
10,000

SECOND OFFENSE
(Amounts in Pesos)
30,000

THIRD OFFENSE
(Amounts in Pesos)
50,000

NOT CURRENT

10,000 Plus 200/day of


violation

30,000 Plus 300/day of


violation

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

SRC Rule 52.1-4

REPORT OF EXCHANGE
MEMBERS, BROKERS,
DEALERS TRADING
THROUGH MEMBERS

10,000

30,000

50,000

SRC Rule 52.1-6

VIOLATION OF
CUSTOMER ACCOUNT
INFORMATION RULE

10,000

30,000

50,000

SRC Rule 52.1-7

VIOLATION OF ORDER
TICKET RULE

10,000

30,000

50,000

72

LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 52.1-8

SRC Rule 52.1-9

SRC Rule 52.1-10

Section 68 of SRC; SRC Rule 68


ACCREDITATION
OF EXTERNAL AUDITOR

Corporation Code of the


Philippines (CCP)
REQUIREMENTS FOR A STOCK
CORPORATION

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

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

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

ACTING AS A BROKER, DEALER,


SALESMAN OR AN ASSOCIATED
PERSON OF BROKER OR DEALER
WITHOUT BEING REGISTERED
AS SUCH PURSUANT SECTION
28 OF THE SRC

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

Section 4 of the OTC Rules

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

Section 7 of the OTC Rules

ELIGIBLE INVESTORS IN
AN OTC MARKET
VIOLATION AGAINST THE
REQUIREMENT THAT A
NON-QUALIFIED
INVESTOR SHALL NOT
PARTICIPATE IN AN OTC
MARKET

SRC Rule 32.1

PROHIBITION ON
TRADING OF
UNREGISTERED
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET

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

VIOLATION AGAINST THE


RULES ON ELIGIBLE
SECURITIES IN AN OTC
Section 10 of the OTC Rules

SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM
VIOLATION OF THE
REQUIREMENTS FOR
SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM

Sections 11, 12, 13 of the OTC


Rules

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

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.

Section 19 of the OTC Rules

COMMISSIONS, CHARGES
AND FEES

In case of breach by a bank,


the Commission shall impose
the corresponding sanctions
being enforced on broker or
dealer as if the violation is a
breach of SRC Rules on RBCA
In case of breach by a
qualified investor, the
Commission may declare the
entity as being unfit to
continue participating as a
qualified investor in the OTC
market.
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000

VIOLATIONS IN
CHARGING
COMMISSIONS AND FEES
IN OTC TRANSACTIONS.

79

LEGAL BASIS/
SUBJECT MATTER
Section 20 of the OTC Rules

Section 22 of the OTC Rules


UNLAWFUL ACTS
Section 23 of the OTC Rules

Section 26 of the OTC Rules


DISPUTE RESOLUTION

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

(10) INVESTMENT HOUSES/UNDERWRITER OF SECURITIES


Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
10.1. LICENSING REQUIREMENT
LEGAL BASIS

VIOLATION

Section 3.E of the Omnibus


Rules

VIOLATION OF THE RULE


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

Section 3.F of the Omnibus


Rules

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)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

81

Section 4 of the Omnibus Rules

VIOLATION OF THE RULE


ON UNDERWRITING
REQUIREMENTS

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

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

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

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


amount of misstatement,
whichever is higher

OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68

10,000

20,000

30,000

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

FAILURE TO SECURE
APPROVAL OF
UNDERWRITING
AGREEMENT
NON-SUBMISSION OF
DULY NOTARIZED AND
EXECUTED COPY OF UA

10.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUBJECT REPORT
Sections 54 and 68 of SRC;
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

Section 14.B of the Omnibus


Rules; Section 16 of the
Investment Houses Law

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)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

FAILURE TO USE FORM


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

Section 14.A of the Omnibus


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

Section 14.E of the Omnibus


Rules;
Section 16 of the Investment
Houses Law

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

SRC Rule 49.1-1


SEC Memorandum Circular No.
16 series of 2004

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

10,000 Plus 100/day of delay

30,000 Plus 200/day of delay

50,000 Plus 200/day of delay

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.

SRC Rule 49.1-1

FAILURE TO SUBMIT RBCA


REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING DOCUMENTS
AND NOT USING THE
REQUIRED FORMAT

SRC Rule 28.1-4 (C)

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

SEC Form 28-T

SRC Rule 30.2-6


SEC Form BD 30.2 QCR

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

Sections 54 and 68 of SRC

LATE-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

SPECIAL FORM OF FINANCIAL


STATEMENTS

NON-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

1,000

2,000

4,000

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fines
computed

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
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
Computed

Section 141 of the CCP


GENERAL INFORMATION SHEET

Section 141 of CCP


GENERAL INFORMATION SHEET

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

Revised Code on Corporate


Governance

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

Revised Code on Corporate


Governance

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

Revised Code on Corporate


Governance
CERTIFICATION BY THE
COMPLIANCE OFFICERS ON
THE EXTENT OF COMPLIANCE
WITH MANUAL ON
CORPORATE GOVERNANCE

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily

Suspension of CA

NON-FILING

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

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

RULE ON DUE DILIGENCE

FAILURE TO EXERCISE DUE


DILIGENCE
INVESTIGATIONS OF ALL
MATTERS RELATING TO
THE ISSUER AND THE ISSUE

Section 8 of the Omnibus Rules;


Section 16 of the Investment
Houses Law

FAILURE TO COMPLY WITH


THE DISTRIBUTION
REQUIREMENTS

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

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

10.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 3.A.vi of the Omnibus
Rules; Section 16 of the
Investment Houses Law

Section 5 of the Omnibus Rules;


Section 16 of the Investment
Houses Law

VIOLATION
VIOLATION OF
INTERLOCKING DIRECTORS
AND OFFICERS

RULE ON INITIAL PUBLIC


OFFERING DISTRIBUTION
PROCESS

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

Section 10 of the Omnibus


Rules
RULE ON UNDERWRITING FEES

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

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)

Section 11. A of the Omnibus


Rules; Section 16 of the
Investment Houses Law

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

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Any or all of the following


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

Any or all of the following


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

Any or all of the following


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

RULE ON UNDERWRITING
COMMITMENT
Section 11. B of the Omnibus
Rules

VIOLATION OF THE RULE


ON THE MINIMUM
CAPITALIZATION AND/OR
UNIMPAIRED CAPITAL AND
SURPLUS

88

LEGAL BASIS/
SUBJECT REQUIREMENTS

VIOLATION
i.
ii.
iii.

iv.

v.

Section 11.C of the Omnibus


Rules; Section 16 of the
Investment Houses Law

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

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

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

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

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

89

LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 11.E of the Omnibus
Rules; Section 16 of the
Investment Houses Law

Section 12 of the Omnibus


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

Section 13 of the Omnibus


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

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.

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

FAILURE TO COMPLY WITH


CAPITAL ADEQUACY
REQUIREMENTS
SINGLE BORROWERS
LIMIT (SBL)
NETWORTH TO RISKASSETS RATIO

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

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

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

100,000

200,000

FAILURE TO PRESERVE AND


STORE RECORDS OF ALL
TRANSACTIONS AND
OTHER DOCUMENTS FOR
FIVE (5) YEARS FROM THE
DATES WHEN THEY WERE
CLOSED
Section 17 of the Omnibus
Rules; Section 16 of the
Investment Houses Law
RULE ON STOCKBROKERAGE
OR DEALERSHIP FUNCTIONS
Section 68 of SRC; SRC Rule 68
ACCREDITATION
OF EXTERNAL AUDITOR

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

FAILURE TO ENGAGE THE


SERVICES OF AN EXTERNAL
AUDITOR WITHOUT A
GROUP B ACREDITATION

Fine not exceeding 200.00


per day for every day during
which such violation or noncompliance continues

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)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

REQUIREMENTS FOR A STOCK


CORPORATION

(11) SELF REGULATORY ORGANIZATIONS, EXCHANGES


Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
11.1. LICENSING REQUIREMENT
LEGAL BASIS
Section 32

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)

0.001% of the maximum


aggregate amount of the total
and issued and outstanding
shares or 50,000, whichever is
higher
Plus 200 per day of delay

0.002% of the maximum


aggregate amount of the
total issued and outstanding
shares or 100,000,
whichever is higher
plus
500 per day of delay

0.004% of the maximum


aggregate amount of the
total issued and outstanding
shares or 200,000,
whichever is higher
plus
1,000 per day of delay

11.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUJBECT REPORT
Section 68 of SRC; SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

VIOLATION
LATE-FILING

92

LEGAL BASIS/
SUJBECT REPORT

VIOLATION
NON-FILING

Sections 54 and 68 of SRC;


SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

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)

0.005% of the maximum


aggregate amount of the total
issued and outstanding shares
or 200,000, whichever is
higher
Plus 500 per day of delay

0.01% of the maximum


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

0.02% of the maximum


aggregate amount of the
total issued and outstanding
shares or 400,000,
whichever is higher
Plus 1,000 per day of delay

10,000 per AFS or 1,000 per


material deficiency,
whichever is higher1
10,000 or 1/10 of 1% of the
amount of misstatement,
whichever is higher1

20,000 per AFS or 2,000 per


material deficiency,
whichever is higher1
20,000 or 1/20 of 1% of the
amount of misstatement,
whichever is higher1

30,000 per AFS or 3,000 per


material deficiency,
whichever is higher1
30,000 or 1/30 of 1% of the
amount of misstatement,
whichever is higher1

10,000

20,000

30,000

Sections 54 and 68 of SRC

LATE FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

SPECIAL FORM OF FINANCIAL


STATEMENTS

NON-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

1,000

2,000

4,000

20,000 basic penalty


Plus500/day of delay

30,000 basic penalty Plus


1,000/day of delay

50,000 Plus 1,500/day


of delay

SRC Rule 39.1.1(f)

MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
LATE FILING OR NONFILING

AUDIT CALENDAR (on or before


the 15th of January of every
year or notify the Commission
of any amendment thereto)

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

SRC Rule 39.1.1(E)

SRC Rule 39.1.1(j)

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

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

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fines
computed

Total fine plus


15% of the total fine
Computed

LATE OR NON-FILING

*This should be filed with


the Enforcement and
Investors Protection
Department
FAILURE OF SRO TO FILE
REQUIRED REPORT

SRC Rule 39.1.2(c)

FAILURE TO AMEND SEC


FORM 39

Section 141 of the CCP


GENERAL INFORMATION SHEET

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)

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
Computed

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

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

GENERAL INFORMATION SHEET

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

Revised Code on Corporate


Governance
MANUAL ON CORPORATE
GOVERNANCE

Revised Code on Corporate


Governance

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

25,000 plus 100 daily penalty

30,000 plus 100 daily


penalty

Suspension of CA

Revised Code on Corporate


Governance
CERTIFICATION BY THE
COMPLIANCE OFFICERS ON
THE EXTENT OF COMPLIANCE
WITH MANUAL ON
CORPORATE GOVERNANCE

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily

Suspension of CA

NON-FILING

25,000
plus 100 daily penalty

30,000
plus 100 daily penalty

Suspension of CA

Revised Code on Corporate


Governance; Section 54 of SRC

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

11.3. OPERATIONAL PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS
SRC Rule 33.2 (c)

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)

SRC Rule 33.2 (c)

FAILURE TO COMPLY WITH


THE OWNERSHIP
REQUIREMENT

100,000 basic penalty plus


P100/day of delay

150,000 basic penalty plus


P100/day of delay

200,000 basic penaly plus


P100/day of delay

SRC Rule 33.2 (d)

FAILURE OF AN EXCHANGE
TO PROTECT CUSTOMER
ACCOUNTS IN CASE OF
BUSINESS FAILURE

100,000 basic penalty plus


P100/day of delay

150,000 basic penalty plus


P100/day of delay

200,000 basic penaly plus


P100/day of delay

SRC Rule 39.1.1(d)

FAILURE TO SUPERVISE
LISTED COMPANIES

50,000

75,000

100,000

SRC Rule 39.1.1(e)

FAILURE TO COMPLY WITH


REQUIREMENTS ON
COMPLIANCE AND
SURVEILLANCE

50,000

75,000

100,000

SRC Rule 39.1.1(g)

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

50,000

75,000

100,000

97

LEGAL BASIS

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

COMMISSION AND TAKE


DISCIPLINARY ACTION,
WHERE APPROPRIATE,
PURSUANT TO SRO RULES
SRC Rule 39.1-1 (F)

FAILURE OF SRO TO SEND


DEFICIENCY LETTER, IF
WARRANTED

50,000

75,000

100,000

SRC Rule 39.1-1 (F)

FAILURE OF SRO TO
INITIATE INVESTIGATION,
IF WARRANTED
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

SRC Rule 39.1-1


(G-ii)

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

50,000

75,000

100,000

SRC Rule 39.1-1 (G-iii)

FAILURE OF SRO TO
NOTIFY THE COMMISSION
OF INVESTIGATION OF SRC
SECTIONS 24,26,27
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

SRC Rule 39.1-1 (G-i)

SRC Rule 39.1.1(h)/SRC Rule


40.6

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)

FAILURE TO COMPLY WITH


DISCIPLINARY ACTION OF
THE COMMISSION

50,000

75,000

100,000

SRC Rule 39.1.2(b)

FAILURE TO REGISTER AS
AN SRO

100,000

200,000

300,000

SRC Rule 39.1.2(f)

FAILURE OF SRO TO SEND


TO THE COMMISSION
COPIES OF ANY NOTICES,
REPORTS OR RECORDS OF
CHANGES COVERED BY
AMENDMENTS
FAILURE TO COMPLY WITH
RULES ON ALLOCATION OF
REGULATORY
RESPONSIBILITIES AMONG
SROS

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

20,000 basic penalty Plus


500/day of delay

30,000 basic penalty Plus


1,000/day of delay

50,000 Plus 1,500/day of


delay

SRC Rule 39.1.3

99

LEGAL BASIS

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

SRC Rule 40.2

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

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

SRC Rule 40.3

FAILURE OF SRO,
REGISTERED EXCHANGE
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
SUBMIT PROPOSED RULE
OR AMENDMENT THERETO
OR TO OBSERVE
PROCEDURE ON RULE
MAKING
FAILURE OF SRO,
REGISTERED EXCHANGE
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
COMPLY WITH THE

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

SRC Rule 40.4

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

SRC Rule 40.7

FAILURE OF SRO TO
NOTIFY THE COMMISSION
OF ANY DISCIPLINARY
SANCTION OF ANY
MEMBER

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

SRC Rule 52.1-3

VIOLATION OF RULE ON
KEEPING OF EXCHANGE
RECORDS

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

Section 68 of SRC; SRC Rule 68

FAILURE TO ENGAGE THE


SERVICES OF AN EXTERNAL
AUDITOR WITHOUT A
GROUP B ACREDITATION

50,000

100,000

200,000

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

ACCREDITATION
OF EXTERNAL AUDITOR

Corporation Code of the


Philippines (CCP)
REQUIREMENTS FOR A STOCK
CORPORATION

VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP

101

(12) CLEARING AGENCIES


Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
12.1. LICENSING REQUIREMENT
LEGAL BASIS

VIOLATION

SRC Rule Section 41

PROHIBITION ON THE USE


OF UNREGISTERED
CLEARING AGENCY

SRC Rule 42.1(a)

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

12.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUJBECT REPORT
SRC Rule 42.1(e)
AUDITED FINANCIAL
STATEMENTS
SEC Form 42-FS
Sections 54 and 68 of SRC;
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

MATERIAL DEFICIENCY

10,000 per AFS or 1,000 per


material deficiency,
whichever is higher1

20,000 per AFS or 2,000 per


material deficiency,
whichever is higher1

30,000 per AFS or 3,000


per material deficiency,
whichever is higher1

MATERIAL MISSTATEMENT
OR MISREPRESENTATION

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


amount of misstatement,
whichever is higher1

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


amount of misstatement,
whichever is higher1

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

Sections 54 and 68 of SRC

LATE FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

SPECIAL FORM OF FINANCIAL


STATEMENTS

NON-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS

1,000

2,000

4,000

FAILURE TO FILE
AMENDMENT FORM FOR
CLEARING AGENCIES

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fines computed

Total fine plus


15% of the total fine
Computed

SRC Rule 42.1(d)


SEC Form 42-CA
Section 141 of the CCP
GENERAL INFORMATION SHEET

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

GENERAL INFORMATION SHEET

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
Computed

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

Revised Code on Corporate


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

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

Revised Code on Corporate


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

NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS

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

12.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS/
SUJBECT REQUIREMENT
SRC Rule 42.1(b)

SRC Rule 42.2

Section 68 of SRC; SRC Rule 68


ACCREDITATION
OF EXTERNAL AUDITOR

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

75,000 basic penalty


Plus 1,000/day of delay

100,000 basic penalty


Plus 1,500/day of delay

20,000 basic penalty


Plus 500/day of delay

30,000 basic penalty


Plus 1,000/day of delay

50,000 basic penalty


Plus 1,500/day of delay

FAILURE TO ENGAGE THE


SERVICES OF AN EXTERNAL
AUDITOR WITH A GROUP
B ACCREDITATION

50,000

100,000

200,000

105

LEGAL BASIS/
SUJBECT REQUIREMENT

Corporation Code of the


Philippines (CCP)
REQUIREMENTS FOR A STOCK
CORPORATION

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)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(13) ALTERNATIVE TRADING SYSTEMS


Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
13.1. LICENSING REQUIREMENT
LEGAL BASIS
Section 37 of the SRC; Section II of
the ATS Rules

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)

0.001% of the maximum


aggregate amount of the total
and issued and outstanding
shares or 50,000, whichever is
higher
Plus 200 per day of delay

0.002% of the maximum


aggregate amount of the total
issued and outstanding shares
or 100,000, whichever is higher
plus
500 per day of delay

0.004% of the maximum


aggregate amount of the
total issued and
outstanding shares or
200,000, whichever is
higher

13.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUJBECT REPORT
Sections 54 and 68 of SRC;
SRC Rule 68
AUDITED FINANCIAL STATEMENTS

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

Sections 54 and 68 of SRC;


SRC Rule 68
AUDITED FINANCIAL STATEMENTS

0.005% of the maximum


aggregate amount of the total
issued and outstanding shares
or 200,000, whichever is
higher
Plus 500 per day of delay

0.01% of the maximum


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

MATERIAL DEFICIENCY

10,000 per AFS or 1,000 per


material deficiency,
whichever is higher1

20,000 per AFS or 2,000 per


material deficiency,
whichever is higher1

MATERIAL
MISSTATEMENT OR
MISREPRESENTATION

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


amount of misstatement,
whichever is higher1

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


amount of misstatement,
whichever is higher1

30,000 or 1/30 of 1% of
the amount of
misstatement, whichever
is higher1

10,000

20,000

30,000

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68

0.02% of the maximum


aggregate amount of the
total issued and
outstanding shares or
400,000, whichever is
higher
Plus 1,000 per day of
delay
30,000 per AFS or 3,000
per material deficiency,
whichever is higher1

Sections 54 and 68 of SRC

LATE FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

SPECIAL FORM OF FINANCIAL


STATEMENTS

NON-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

1,000

2,000

4,000

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)

Section G(1), Rules and Regulations


on ATS

LATE FILING OR NONFILING OF THE REPORTS

10,000 basic fine


plus 500/day of delay

10,000 basic fine


plus 500/day of delay

10,000 basic fine


plus 500/day of delay

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

13.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS/
REQUIREMENT

VIOLATION

Section G(2), Rules and Regulations


on ATS

Late Amendment or NonAmendment of


Registration Statement

Section G(3), Rules and Regulations


on ATS

Late or Non-Approval of
Investors
Training Program
Violation of any provision
of the Rules and
Regulations on ATS

10,000 basic fine


plus 1,000/day of delay

10,000 basic fine


plus 1,000/day of delay

10,000 basic fine


plus 1,000/day of delay

50,000 per violation

100,000 per violation

200,000 per violation and


cancellation of
registration

FAILURE TO ENGAGE THE


SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B

50,000

100,000

200,000

Section G(4), Rules and Regulations


on ATS

Section 68 of SRC; SRC Rule 68


ACCREDITATION
OF EXTERNAL AUDITOR

108

LEGAL BASIS/
REQUIREMENT

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)

SECOND OFFENSE
(Amounts in Pesos)

THIRD OFFENSE
(Amounts in Pesos)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

ACREDITATION
Corporation Code of the
Philippines (CCP)

VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP

REQUIREMENTS FOR A STOCK


CORPORATION

(14) TRANSFER AGENTS


Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
14.1. LICENSING REQUIREMENT
LEGAL BASIS/SUBJECT REPORT
SRC Rule 36-4.1
(SEC Form 36-TA)

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

14.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
SUBJECT REPORT
SRC Rule 36.4.2(a)
ANNUAL REPORT
SEC Form 36-AR
SRC Rule 36.4.2(a)
AUDITED FINANCIAL STATEMENTS

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

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


amount of misstatement,
whichever is higher1

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


amount of misstatement,
whichever is higher1

40,000 or 1/30 of 1% of
the amount of
misstatement, whichever
is higher1

10,000

20,000

30,000

OTHER NONCOMPLIANCE WITH THE


REQUIREMENTS OF SRC
RULE 68
Sections 54 and 68 of SRC

LATE-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

SPECIAL FORM OF FINANCIAL


STATEMENTS

NON-FILING

2,000 plus 100 per day

4,000 plus 100 per day

8,000 plus 100 per day

1,000

2,000

4,000

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fines computed

Total fine plus


15% of the total fine
Computed

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

Section 141 of CCP


GENERAL INFORMATION SHEET

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)

The basis of the penalty is the


Total Assets reported in the
latest Financial Statements

Total fine plus


10% of the total fine
computed

Total fine plus


15% of the total fine
Computed

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

Revised Code on Corporate


Governance

LATE-FILING

10,000 plus
100 daily

20,000 plus
100 daily

Suspension of CA

25,000 plus 100 daily penalty

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

Revised Code on Corporate


Governance

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

Revised Code on Corporate


Governance; Section 54 of SRC

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

50,000 Plus 300/day of


delay

10,000 basic penalty


Plus 100/day of delay

30,000 basic penalty


Plus 200/day of delay

50,000 basic penalty


Plus 300/day of delay

OTHER REQUIREMENTS,
INCLUDING COMPLIANCE WITH
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
SRC Rule 36.4.1(d)

SRC Rule 36.4.2(b)

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

14.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS


LEGAL BASIS/
SUBJECT REQUIREMENTS
SRC Rule 36-4.2(c)

VIOLATION
FAILURE TO COMPLY
WITH PERIODIC
REPORTING TO ISSUER
REQUIREMENT

SRC Rule 36-4.2(d)

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

SRC Rule 364.3

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

Section 68 of SRC; SRC Rule 68

FAILURE TO ENGAGE THE


SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION

25,000

50,000

100,000

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

(Please see pages 3 to 5


of this Scale)

ACCREDITATION
OF EXTERNAL AUDITOR

Corporation Code of the


Philippines (CCP)

VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP

REQUIREMENTS FOR A STOCK


CORPORATION

113

(15) OTHER PROHIBITED PRACTICES AND SCHEMES UNDER THE SECURITIES REGULATION CODE
LEGAL BASIS/
REQUIREMENTS
Sec. 24, SRC

Sec. 26, 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:


100,000.00

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

Sec. 27, SRC

Insiders Trading

Associated Person or Salesman:


100,000.00

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

Associated Person or Salesman:


100,000.00

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)

Failure of any public


Denial of the request for
(1) 50,000 fine;
companies and secondary
approval of the consideration (2) The appraisal report shall not
licensees of the
be accepted as a supporting
Commission including
document to the application
those significant
or financial statements
subsidiaries, that propose
(3) The violation shall be
to receive property in
referred to EIPD for
exchange for shares of
appropriate investigation.
stock, to submit an
appraisal report issued by
an SEC-accredited appraisal
company
Failure of public
companies and secondary
licensees and their
significant subsidiaries,
that have adopted the fair
value model in measuring
their properties pursuant
to Philippine Financial
Reporting Standards, to
engage the services of an
SEC-accredited appraisal
company

1/100 of 1% of the fair value 1/100 of 1% of the fair value of


of the property recorded in
the property recorded in the
the financial statements
financial statements without the
without the required
required valuation of an
valuation of an accredited
accredited appraisal company
appraisal company

1/100 of 1% of the fair


value of the property
recorded in the financial
statements without the
required valuation of an
accredited appraisal
company

115

C. INDEPENDENT PROFESSIONALS, FIRMS AND EXPERTS


(16) EXTERNAL AUDITORS AND AUDIT FIRMS
In-Charge: OFFICE OF THE GENERAL ACCOUNTANT
16.1. ACCREDITATION REQUIREMENT
LEGAL BASIS
Section 68 of SRC;
SRC Rule 68

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)
-

(2) Referral to EPD for


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

116

16.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
REPORT
SRC Rule 68, as amended

VIOLATION
FAILURE TO TIMELY
SUBMIT THE REPORT

REPORT ON DISAGREEMENTS WITH


CLIENTS; FINDINGS OF MATERIAL
FRAUD, ERROR, SIGNIFICANT
LOSSES OR WEAKNESS IN
INTERNAL CONTROLS

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

FAILURE TO TIMELY FILE


THE REPORT

REPORT ON MATERIAL CHANGES IN


THE FIRMS OR THE ACCOUNTING
OFFICE STRUCTURE,
COMPOSITION, QUALITY
CONTROLS

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

Group A: 100,000 and


suspension of accreditation
Group B: 40,000 and
suspension of accreditation
Group C: 20,000 and
suspension of accreditation

16.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS


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

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 A: 100,000 and


suspension of accreditation

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
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

Failure to timely pay the


prescribed annual fee

Daily fine of PhP 100

Daily fine of PhP 500

Failure to adopt and


implement quality
control standards in the
conduct of audit

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

Group 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

Daily fine of PhP 1,000

Group A: 100,000 and


suspension of accreditation

Group A: 200,000 and


removal of accreditation

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)

Failure to comply with


other requirements of
SRC Rule 68, as amended
and other Guidelines
issued by the
Commission

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

Group A: 100,000 and


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

17. CREDIT RATING AGENCIES


In-Charge: OFFICE OF THE GENERAL ACCOUNTANT
17.1.

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

(3) The violation shall be


referred to EIPD for
appropriate
investigation.

17.2. REPORTORIAL REQUIREMENTS


LEGAL BASIS/
REPORT
SRC Rule 12

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

17.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS


LEGAL BASIS

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

10,000 plus P100 per


day of delay

20,000 plus 100 per


day of delay

40,000 plus P100 per


day of delay

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

50,000

100,000 and
suspension of
accreditation

200,000 and removal


of accreditation

SUBSEQUENT
OFFENSES
(Amounts in
Pesos)
40,000 plus 100
per day of delay
and suspension
of accreditation
-

120

18. APPRAISAL COMPANIES


In-Charge: OFFICE OF THE GENERAL ACCOUNTANT
18.1.

ACCREDITATION REQUIREMENT
LEGAL BASIS

Section 62 of the Corporation


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

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

Failure of any issuers of


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

1/100 of 1% of the
amount of
consideration

Failure of any public


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

1/100 of 1% of the
property dividend

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

18.2. REPORTORIAL REQUIREMENTS


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

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

50,000 and suspension of


accreditation

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

10,000

20,000

50,000 and suspension of


accreditation

MATERIAL
MISREPRESENTATION IN
THE ANNUAL REPORT

10,000

20,000

P50,000 and suspension of


accreditation

MATERIAL
MISREPRESENTATION IN
ANY APPRAISAL REPORT
ISSUED BY THE
COMPANY

50,000

100,000 and suspension of


accreditation

200,000 and removal of


accreditation

FAILURE TO TIMELY
SUBMIT ANNUAL
REPORT

122

18.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS


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

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

100,000 and suspension of


accreditation

200,000 and removal of


accreditation

VIOLATION

FIRST OFFENSE
(Amounts in Pesos)
Revocation

SECOND OFFENSE
(Amounts in Pesos)
n/a

THIRD OFFENSE
(Amounts in Pesos)
n/a

FAILURE TO TIMELY PAY


THE PRESCRIBED
ANNUAL FEE

19. OTHER VIOLATIONS


LEGAL BASIS
SEC MC No. 20. s.1999

CORPORATION WHOSE
INCORPORATOR/S
IS/ARE MINOR/S

SEC MC No. 20. s.1999

INCORPORATOR/S WITH
FAKE TINS (TAXPAYER
IDENTIFICATION CARD/S)

Revocation

n/a

n/a

SEC MC No. 20. s.1999

INCORPORATOR/S WHO
IS/ARE DECEASED AT
THE TIME OF
INCORPORATION

Revocation

n/a

n/a

SEC MC No. 20. s.1999

OFFICER/S WHO ARE


DECEASED

Revocation

123

Sec. 21 of Corporation Code

CORPORATION BY
ESTOPPEL

P 10,000

P 20,000

Revocation

Sec. 45 of Corporation Code

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