Accounting Alert

This Accounting Alert is issued to circulate Insurance Commission (IC) Circular Letter (CL) 2021-06 dated January 26, 2021 the guidelines on the electronic submission of requests for investment approval, compliance with security deposit requirements, and filing of reportorial requirements for IC-Regulated Entities

Introduction

The CL aims to provide simplified, streamlined and automated standards, measures and procedures in delivering efficient services for requests and reports covered in the CL.

Applicability

Pursuant to Section 437 of the Amended lnsurance Code, Section 6 of the Pre-Need Code, and Section 4 of the Executive Order No. 192, Series of 2015, IC has promulgated guidelines on the electronic submission of the following:

• report on investments made and sold or disposed of;
• report on derivative transactions;
• statement of capital, reserves, and surplus investments;
• report on material related party transactions;
• statement of rental income;
• report on investments held under Investment Management Agreement;
• request for approval of investments; and,
• compliance with security deposit requirements.

Online Submission

All applications and reportorial submissions shall be submitted through the Online Submission Portal (https://onlinesubmission.insurance.gov.ph/isd/login) of the lnvestments Service Division (ISD).

General Requirements

Covered IC-regulated entities and all concerned financial institutions shall electronically submit applications and reports mentioned above with the following general requirements:

1. Cover Letter - the cover letter must be in portable document format with the electronic signature of the company's authorized officer.
2. Filing Fee - payment of fees and charges in accordance with CL 2014-25, if applicable.
3. Supporting Documents - specific documentary requirements of the reports to be submitted are enumerated in the CL.

Review and Approval

All submissions shall be considered officially received once the ISD releases an email acknowledging the receipt of documentary requirements. A reply letter for requests of investment approval and compliance with security deposit requirements shall be released electronically within the prescribed number of processing days from the date of receipt of complete documents and proof of payment of filing fees. Report submissions that do not conform to the above prescribed procedures shall not be accepted and will be considered non-compliant with the existing reportorial requirements subject to applicable penalties for late submission.

IC CL 2021-06 is effective immediately.

See attached IC Circular Letter 2021-06 for further details.