UNIVERSITY OF PERPETUAL HELP SYSTEM DALTA

CALAMBA CAMPUS
BRGY. PACIANO, RIZAL
COLLEGE OF ENGINEERING

Assignment in Management Engineering

Midterm

Tobias, Hazel Lynn C. Engineering Management

BsECE IV Engr. E. B. Pioquinto

January 17, 2019

Functions of Sec
Philippines
Its major functions include registration of securities, analysis of every registered security, and
the evaluation of the financial condition and operations of applicants for security issue.
The functions of the SEC are defined in Section 5 of the Securities Regulation Code, and include
the following major areas:
 Supervision over all registered business entities in the country, including suspensions
and revocations of their registrations
 Policymaking with regard to the market in securities
 Control over and approval of security registration statements
 Power to investigate violations of securities laws and to impose sanctions for such
violations
 Power to issue subpoenas, punish for contempt, and issue cease and desist orders in
furtherance of its law enforcement mission
U.S
5 Functions of the U.S. Securities and Exchange Commission
Investing is a complex world that can be very intimidating to a beginner. It’s also a world that
offers a lot of unique opportunities. Investing can be very financially rewarding for those with a
talent for making the right moves at the right time.
The Securities and Exchange Commission (SEC) was created during the Great Depression. In
1934, the passage of the Securities Exchange Act was designed to increase trust in capital
markets by providing honest and accurate information for investors. In the modern world, the
SEC has a number of important functions, but its overall mission is to protect investors and
maintain a fair and orderly market.
1. Looking Toward the Future
Protection continues to become more important as more first-time investors enter the market.
The economy is struggling, and many younger people are seeking ways of increasing their wealth
and saving for the future. The SEC is working to oversee security transactions while promoting
capital formation that can sustain and improve economic growth. The healthier our economy
gets, the easier it will be for everyday families to make it.
2. Creating Fair Markets
The SEC has a special division that’s designed to provide a daily overview of the activities of the
market. The major participants, including the clearing agencies, exchanges, credit rating
agencies and security firms, are all watched by this division of the SEC. It also helps establish
new rules and policies by examining and interpreting matters that affect operations within the
securities markets.
3. Ensuring Corporate Disclosure
The Division of Corporation Finance works with the SEC to implement the rules and regulations
established in the Securities Act of 1934. The main objective of this division is to make sure that
corporations provide investors with honest information regarding securities. Without this
protection, there would be a great deal more fraud surrounding transactions. The SEC reviews
documents, such as yearly reports that are sent out to shareholders.
4. Protecting Investors
Along with making sure that corporations provide full disclosure, the SEC also looks after the
investors themselves. The Division of Investment Management handles this duty. They regulate
businesses that are engaged in investing and protect individual investors with mutual funds by
making sure that the information about the investments is fully disclosed.
5. Enforcing the Law
If the SEC obtains evidence of violations, they can bring civil actions in court. The Division of
Enforcement handles this type of situation. This division uses intelligence like investor tips,
surveillance and information from other divisions to determine the nature of certain situations.
When dealing with criminal activities, they will work with other law-enforcement agencies to
handle the problem. Such cases often end up in federal court after the initial evidence has been
gathered.
The SEC is a regulatory agency. While it does work with law enforcement, it can’t be expected to
oversee every unique transaction. If you’re an investor, you will need to do your own research
and figure out how to make smart decisions. Investing is and always will be a gamble, but with
strong regulations in place, everyone will have a better chance of success.

Powers of SEC
Based on PRESIDENTIAL DECREE NO. 902-A SEC REORGANIZATION ACT
Sec. 6. In order to effectively exercise such jurisdiction, the Commission shall possess the
following powers: chanroblesvirtuallawlibrary
(a) To issue preliminary or permanent injunctions, whether prohibitory or mandatory, in all
cases in which it has jurisdiction, and in which cases the pertinent provisions of the Rules of
Court shall apply;
(b) To punish for contempt of the Commission, both direct and indirect, in accordance with the
pertinent provisions of, and penalties prescribed by, the Rules of Court;
(c) To compel the officers of any corporation or association registered by it to call meetings of
stockholders or members thereof under its supervision
(d) To pass upon the validity of the issuance and use of proxies and voting trust agreements for
absent stockholders or members;
(e) To issue subpoena duces tecum and summon witnesses to appear in any proceedings of the
Commission and in appropriate cases order search and seizure or cause the search and seizure
of all documents, papers, files and records as well as books of accounts of any entity or person
under investigation as may be necessary for the proper disposition of the cases before it
(f) To impose fines and/or penalties for violation of this Decree or any other laws being
implemented by the Commission, the pertinent rules and regulations, its orders, decisions
and/or rulings;
(g) To authorize the establishment and operation of stock exchanges, commodity exchanges and
such other similar organization and to supervise and regulate the same; including the authority
to determine their number, size and location, in the light of national or regional requirements
for such activities with the view to promote, conserve or rationalize investment;
(h) To pass upon, refuse or deny, after consultation with the Board of Investments, Department
of Industry, National Economic and Development Authority or any other appropriate
government agency, the application for registration of any corporation, partnership or
association or any form of organization falling within its jurisdiction, if their establishment,
organization or operation will not be consistent with the declared national economic policies.
(i) To suspend, or revoke, after proper notice and hearing, the franchise or certificate of
registration of corporations, partnerships or associations, upon any of the grounds provided by
law, including the following:chanroblesvirtuallawlibrary
[1] Fraud in procuring its certificate of registration;
[2] Serious misrepresentation as to what the corporation can do or is doing to the great
prejudice of or damage to the general public;
[3] Refusal to comply or defiance of any lawful order of the Commission restraining commission
of acts which would amount to a grave violation of its franchise;
[4] Continuous inoperation for a period of at least five (5) years;
[5] Failure to file by-laws within the required period;
[6] Failure to file required reports in appropriate forms as determined by the Commission
within the prescribed period;
(j) To exercise such other powers as implied, necessary or incidental to the carrying out the
express powers granted to the Commission or to achieve the objectives and purposes of this
Decree.
In the exercise of the foregoing authority and jurisdiction of the Commission, hearings shall be
conducted by the Commission or by a Commissioner or by such other bodies, boards,
committees and/or any officer as may be created or designated by the Commission for the
purpose. The decision, ruling or order of any such Commissioner, bodies, boards, committees
and/or officer may be appealed to the Commission sitting en banc within thirty (30) days after
receipt by the appellant of notice of such decision, ruling or order. The Commission shall
promulgate rules of procedures to govern the proceedings, hearings and appeals of cases falling
within its jurisdiction.
The aggrieved party may appeal the order, decision or ruling of the Commission sitting en banc
to the Supreme Court by petition for petition for review in accordance with the pertinent
provisions of the Rules of Court
Functions of DTI
MAJOR FINAL OUTPUTS
The Major Final Outputs (MFOs) of the DTI highlight the Department’s contributions to the
achievement of the country’s key societal goals of national economic growth and poverty
reduction; and to the twin sectoral (industry and services) goals, which are job generation and
global competitiveness.
The functions of the DTI are performed with improved delivery of services by transparency and
accountability consistent with the Department’s mantra: Consumer Matters, Business Gains. It
has adopted four (4) MFOs:
1. International trade policy negotiation, facilitation, and promotion services
The DTI’s crucial role in trade policy negotiation, facilitation, and promotion is clear and
evident. In recent years, the Philippines took a more pro-active stance in trade policy
negotiations, making sure we protect and further our national interests and aligning our product
and market strategies with the dynamics of the world trading system. We need to expand our
exports through market access and product diversification. We need to face the challenges in the
international front. The Department recognizes that it should avoid fully embracing unbridled
liberalization but instead face the legitimate challenge of international competitiveness.
The Department, together with other government agencies and the private sector, as enshrined
in the Philippine Export Development Plan (PEDP) 2004-2007, shall intensify the linkage
between market access negotiations and trade promotion activities. Effective combination of
these two enables better matching between RP export supply capabilities and market demand.
Such alignment would maximize the country’s limited resources and have a higher impact on
export performance. Geographic markets would be ASEAN, China, Japan, USA, and EU.
In addition to the key markets as specified in the PEDP, secondary markets shall be addressed
based on the opportunities that are presented by trade agreements, business matching, and
those resulting from developmental activities of government and the private sector.
Opportunities provided by specific market segments such as those defined along cultural bounds
shall likewise be tapped. These culture-based markets that will provide opportunities to
Philippine exports include, but are not limited to, halal, kosher, and overseas Filipinos. Also, as
provided in the PEDP, the key concern from the supply side is the country’s capability to meet
the demands of markets. Specific interventions are necessary along the supply chain of each
Revenue Stream (priority sector) to ensure one or combinations of the following:

 Compliance with market regulations;

 Achievement of critical supply levels;
 Integration of widely-accepted technological innovation;
 Improvement of competitiveness; and
 Creation of high-impact strategic partnerships
Other specific strategies and interventions would include: promoting service-oriented exports
and nurturing the capabilities of globally competitive enterprises that produce high quality
products; accelerating industry clustering programs to enhance competitiveness; pursuing a
country branding program to promote the Philippines as a source of quality and competitive
products; and strengthening strategic alliances and partnerships with the export sector,
business support organizations, other government entities, and embassies and foreign trade
offices to address the proper valuation of exports and imports, thereby increasing revenues. The
Department shall also guarantee a policy and financing environment that is conducive to export
growth.
Programs/Activities/Projects (PAPs)

 Formulation of plans, programs, and policies for the promotion and facilitation of
exports Policy advocacy/enabling environment
 Implementation of trade remedy measures against unfair trade practices and/or surges
in imports
 Negotiation of bilateral/multilateral/international agreement Commercial intelligence
 Accreditation of certifying bodies/conformity assessment bodies/testing and calibration
laboratories
 Participation in international/regional standardization program (e.g. International
Organization for Standardization/International Electrotechnical Commission)
 Provision of information through servicing of trade inquiries, rendering export advisory
services, development of information of products and markets, and conduct of
information sessions
 Alignment of Philippine National Standards (PNS) with international standards
Resolution of trade complaints
 Issuance of export clearance and accreditation of exporters
 Participation in conduct of local/international fairs, trade missions and exhibits Conduct
of business matching activities
 Provision of cargo consolidation networking services
 Participation/coordination with international counterparts for policy coordination and
formulation relative to shipping/logistics interests
2. Industry development and investment promotion and facilitation services
The DTI’s agenda is to create economic activity. The focus is to make the economy more robust
by implementing measures that shall attract more investments and allow businesses to grow and
expand.
As the vanguard of investment promotion, the Department undertakes initiatives to address
investor concerns in the areas of labor, immigration, bureaucracy and red tape, security and
peace and order, taxation, and tariff. It continuously contributes to the creation of a conducive
business environment by developing measures and action plans to attract more investors in the
country. Through public and private partnerships, the DTI aggressively pursues the provision of
necessary infrastructure support to entice more investors and to retain them in the country.
To enhance the country’s investment promotion program, the DTI aggressively pursues the
Retention, Expansion, and Diversification (RED) Program to encourage the growth and stability
of businesses. Other strategies include: rationalization of the incentives system; revitalization of
the mining industry; focus on high-end, high-value investments; aggressive promotion of the
country as a provider of services in IT, medical tourism, eco-tourism, and logistics hubs; and
completion of ongoing and pipeline infrastructure projects (through the Philippine
Infrastructure Corporation) to spur further economic activity; and initiating policy reforms,
among others.
Programs/Activities/Projects (PAPs)

 Formulation of plans, programs and policies for industry development and investment
promotion and facilitation
 Policy advocacy/enabling environment
 Conduct of focused investment promotion campaign, investor servicing and awareness
activities
 Registration of investment projects
 Operation and maintenance of Build - Operate -Transfer Center (BOT)
 Development of new approaches to enhance Labor-Management Cooperation for Quality
and Productivity
 Activation of quick reaction teams
 Conduct of plant-level productivity training/seminars Administration of Philippine
Quality Award/s Program Monitoring of industrial training programs
3. Development and promotion services for MSMEs
The DTI is the primary agency in the promotion and development of MSMEs through the
provision of various assistance and interventions, e.g., financing, marketing and promotion,
human resource development, product development, and advocacy. The focus on MSME
promotion and development is geared towards the graduation to higher levels of undertaking,
from micro to small and from small to medium enterprises. A stable framework has been
developed for the proper implementation of MSME development policies, programs, and
strategies consistent with the provisions of the Small and Medium Enterprise (SME)
Development Agenda.
Programs/Activities/Projects (PAPs)

 Formulation of plans, programs, and policies for MSME development and promotion
 Policy advocacy/enabling environment
 Conduct of business matching activities
 Conduct of selling missions and domestic/local trade fairs
 Operation of trade houses/centers
 Organization of product showcase
 Promotion of indigenous raw materials
 Conduct of resource mapping activities
 Conduct of training/seminars
 Conduct of business counseling and consultancy services to MSMEs Facilitation in the
conduct of product research, development, and design services Facilitation in the
conduct of design promotion activities Facilitation in accessing credit for MSMEs
 Maintenance/operation of SME Centers
4. Consumer welfare and protection services
Guaranteeing consumer welfare entails an unyielding quest for strategic policies and
interventions that would result in better consumer protection. To attain this goal, the DTI serves
as a catalyst in promoting a vibrant and sustainable trading environment through the
development and enforcement of policies, trade regulations, and world class product standards
while promoting the efficient distribution of goods and services through regular monitoring of
supply and price levels of basic and prime commodities.
The DTI goes beyond the traditional scope of consumer welfare by being an advocate on behalf
of consumers. Over the past years, the Department has been strengthening its linkage with
private consumer organizations, increasing media awareness of the general public on specific
consumer issues, and providing speedy resolution on consumer complaints. The Department
also undertakes aggressive price monitoring and conducts regular market visits to ensure that
basic and prime commodities are made available to consumers at reasonable prices.
Programs/Activities/Projects (PAPs)

 Formulation of plans, programs, and policies for consumer welfare and protection
 Policy advocacy/enabling environment
 Price and supply stabilization
 Business regulation (e.g., business name registration)
Enforcement/promotion/monitoring of Fair Trade Laws
 Consumer assistance/response and mediation/arbitration of consumer complaints/cases
 Development of PNS
 Product certification scheme and product testing
 Accreditation of freight forwarders
 Implementation of PD 1466 (Cargo Reservation Law)
 Consumer protection advocacy, training, and education/information programs
Organization/Strengthening of consumer organizations Regulation of importation of
used motor vehicles and spare parts
It is emphasized that the DTI functions using the “soup-to-nuts” approach where the whole
gamut of required services, from enterprise formation to production, sale/distribution of
goods in either the domestic and/or export markets, shall involve the intervention of the
appropriate operating units in the entire business process. The services, which range from
investments facilitation, generation and promotion, MSME development and promotion,
trade negotiation, development and promotion, as well as consumer protection, highlight
the equal importance given by the Department to both the producers (firms) and consumers
of the goods and services. To reiterate: in DTI, Consumer Matters, Business Gains.
Powers of DTI
Based on DEPARTMENT ADMINISTRATIVE ORDER NO. 07 Series of 2006
Section 10. Powers and Duties of the Adjudication Officer. – The
Adjudication Officer shall exercise the following powers and duties:
a. Issue summons;
b. Administer oaths and affirmations;
c. Conduct adjudication;
d. Regulate and maintain order during the proceedings;
e. Issue subpoena or subpoena duces tecum, motu proprio or when requested by any party
to compel the attendance of witnesses or the production of documents, records or books
during the hearing;
f. Take or receive all relevant evidence;
g. Rule upon offers of proofs;
h. Take or cause deposition to be taken whenever the ends of justice would be served
thereby;
i. Rule on any procedural request;
j. Issue preliminary orders, preventive orders, and temporary orders;
k. Exclude any party, witness, or any other person from the hearing room;
l. Render a decision within fifteen (15) days from the time the proceedings were
terminated; and
m. Perform such other functions as would contribute to the just, speedy, and inexpensive
resolution of the case.