In a bid to address the challenges faced by SEC-regulated companies in meeting regulatory requirements, the Securities and Exchange Commission (SEC) has announced a series of extensions and streamlining measures for amnesty applications in relation to belatedly filed or non-filed Audited Financial Statements (AFS), General Information Sheets (GIS) and information required under SEC Memorandum Circular (MC) No. 28, series of 2020.
Initially, the SEC issued MC No. 2, series of 2023, allowing corporations and regulated entities to apply for amnesty for their non-compliance with mandatory documentary and reportorial requirements, along with the submission of official email addresses and mobile phone numbers. The deadline for this amnesty application was set for April 30, 2023.
Further, the SEC issued MC No. 6, series of 2023 on April 28, extending the amnesty application deadline for an additional two months until June 30, 2023. Moreover, companies availing of the amnesty now have 90 calendar days, instead of 45 days, from the date of payment of the fixed amnesty amount to submit their latest due AFS.
In a recent update, the SEC further extended the deadline for eligible companies until September 30, 2023, under the newly issued SEC MC No. 9, series of 2023, which also applies to amnesty applications in the above previously issued circulars. Additionally, the SEC has introduced the following guidelines to streamline the application process:
1. Unified Amnesty Application Form. In lieu of a notarized Expression of Interest (EOI) Form and the Amnesty Application Form, amnesty applicants will just be required to accomplish a web-based form on the Electronic Filing and Submission Tool (eFAST) platform, which shall include appropriate tick boxes indicating concurrence and/or consent to certain conditions of the amnesty process.
2. Removal of Undertaking for Latest Due AFS submission. Consistent with the deadline prescribed by the SEC and the Bureau of Internal Revenue (BIR), it is understood that the AFS should be readily available by the end of the extended amnesty period, or until 30 September 2023. Hence, for amnesty applications starting 01 July 2023, the Undertaking to submit the AFS within ninety (90) days from date of payment of amnesty fee shall no longer be applicable.
3. Turnaround time for release of Confirmation of Payment (COP). The release of Confirmation of Payment shall be within fifteen (15) working days from the date of complete submission of reportorial requirements by the applicant.
4. Complete Submission of Reportorial Requirements. Corporations that can upload and submit the correct reportorial requirements (i.e., latest due GIS and AFS), including those reverted for compliance, within the submission period or until 30 September 2023, shall be considered to have undergone the complete process and may thus be entitled to a COP; otherwise, payment of their respective amnesty fees will be forfeited.
5. Refund of overpayment. Refund of amnesty fees for non-compliant corporations shall not be accommodated, except in highly meritorious cases. For suspended or revoked corporations, the petition fees shall not be refunded but shall be re-applied to the payment of the 50% assessed fines, subject to existing accounting and auditing guidelines.
These extensions and streamlining measures provide much-needed breathing room for businesses to rectify non-compliance issues and align their operations with regulatory standards. Eligible companies are urged to take advantage of the extended deadlines and adhere to the streamlined application process to ensure full compliance with SEC requirements.
Please be guided accordingly.
Source:
P&A Grant Thornton
Certified Public Accountants
P&A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.
As published in SunStar Cebu, dated 02 August 2023
