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In a move to improve government efficiency and reduce red tape, the Securities and Exchange Commission (SEC) has issued Memorandum Circular No. 07, Series of 2025. This directive sets specific deadlines for processing applications such as business registrations, permits, licenses, and other authorisations. The initiative is part of a broader government effort to streamline transactions with regulatory agencies and promote greater transparency and accountability.

The circular categorises transactions into three types: simple, complex, and highly technical. Simple applications must be processed within three working days, complex ones within seven, and highly technical transactions within twenty. These prescribed timelines aim to minimise delays and provide applicants with a clear expectation of when to receive action on their submissions.

To reinforce accountability, the circular introduces a “deemed approved” rule. If the SEC does not act within the prescribed period and fails to issue a written notice explaining the delay or identifying deficiencies, the application will be considered approved by default, provided all required documents have been submitted. This gives applicants a clear remedy when the SEC does not act within the mandated timeframe.

In cases where a complete application remains pending beyond the allowed period, the SEC is required to issue a Payment Assessment Form (PAF). Upon payment of the corresponding fees, the SEC must release the permit, license, or certificate within two working days.

While the circular applies to most transactions, it also specifies certain exceptions. Applications governed by special laws or unique circumstances may follow different timelines, as detailed in Annex A of the circular. Moreover, the directive does not apply to applications under investigation or those falling under the exclusions listed in Section 4.4, which include:

a. Applications that are the subject of ongoing legal proceedings, regulatory investigations, or administrative actions;

b. Instances where fraud, misrepresentation or submission of false information is found;

c. Situations where the delay was caused by force majeure or other circumstances beyond the control of the SEC; and

d. Applications requiring specialised technical evaluations or clearances from other government agencies.

The SEC’s adoption of these measures is expected to benefit a wide range of stakeholders, from small business owners to large corporations. This initiative marks a significant step toward more efficient and accountable public service, reflecting the SEC’s commitment to timely action and improved service delivery for the business community.

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 13 August 2025