SEC: New rates mere proposals

The new schedule of fees on the registration of new businesses remains a proposal to stakeholders and has not been implemented yet, regulator Securities and Exchange Commission said amid complaints from various trade groups.

Concerns over the new fees were raised by the Philippine Chamber of Commerce and Industry, Federation of Filipino Chinese Chambers of Commerce and Industry Inc., Philippine Exporters Confederation Inc., Employers Confederation of the Philippines, Management Association of the Philippines, Chamber of Thrift Banks, Philippine Retailers Association, Philippine Franchise Association, Philippine Association of Legitimate Service Contractors, Stratbase ADR Institute for Strategic and International Studies, and the Philippine Food Processors and Exporters Organization Inc., in a 2 October 2023 letter.

The SEC said the revisions were released on 2 August 2023 to solicit comments, suggestions, and inputs.

SEC said it will meet with business groups today to address the points raised in their letter.

The commission said it has always been committed to transparent and accurate data in the interest of fairness to those concerned.

It expressed its aim of clarifying data and statements contained in the letter, including the "generalization of Supreme Court rulings."

The proposed revised schedule of fees and charges was the result of a thorough and careful study, SEC added.

Before releasing the proposal, a dedicated committee was constituted to assess the current fees and charges in relation to operating costs to ensure the sustainability of the commission's services and fulfillment of its legal mandate, the SEC said.

SEC added the schedule of fees and charges was last updated in 2017, based on a proposal from 2014.

"This means that the current rates are based on operational and administrative costs prevailing almost 10 years ago," it added.

Fees to cover cost of new services
SEC pointed out the new fees seek to cover the cost to run API Marketplace and eSEARCH which are electronic systems that were newly launched.

Before implementing the fees and charge applicable to information technology-related services, the SEC conducted public consultation.

In a notice dated 28 June, the commission released for public comment the draft memorandum circular on the schedule of fees and charges related to IT services, giving stakeholders ample time to send their suggestions and recommendations.

The fees and charges were benchmarked with similar services in the Philippines and in other jurisdictions, it said.

SEC cited Singapore's Accounting and Corporate Regulatory Authority which charges an equivalent of P3,029.70 for the download of financial statements, and corporate compliance and financial profile.
"This is equivalent to the company snapshot package, consisting of the General Information Sheet, Annual Financial Statements, and company snapshot, worth P1,000 that may be downloaded from eSEARCH," according to SEC.

"To ensure the efficient delivery of public service and effective enforcement of laws concerning the capital market, financing and lending companies, and the overall corporate sector, the SEC needed to expand and enhance its institutional capacity while embarking on the digital transformation of its services, as also mandated by the Revised Corporation Code of the Philippines, including the development and implementation of an electronic filing and monitoring system, in line with the zero-contact policy embodied in the Ease of Doing Business and Efficient Government Service Delivery Act of 2018," according to the market watchdog.