The Securities and Exchange Commission (SEC) has introduced a new incentive program to help corporations that have failed to submit their annual reports on time to regain their good standing.

The Commission said on Monday that the initiative, known as the Enhanced Compliance Incentive Plan (ECIP), was enabled by SEC Memorandum Circular 13, Series of 2024, issued on 30 August.

The program builds on the success of the SEC’s amnesty program launched last year.

SEC Chairperson Emilio Aquino emphasized the Commission’s commitment to ensuring compliance with legal requirements among entities under its supervision.

“As a regulator, the SEC is committed to ensuring that entities under its supervision are compliant with all the laws, rules, and regulations applicable to them,” said Aquino. He added that the SEC has increased fines and penalties after the previous amnesty program to promote compliance.

Chance for makeup

“With the launch of ECIP, we are affording corporations under our supervision another opportunity to remedy their violations, at lower fees, and restore their good standing.”

Under the ECIP, non-compliant corporations, including those classified as “delinquent,” can settle their outstanding fines and penalties for a reduced amount of P20,000.

Suspended or revoked corporations, including those with pending petitions for the reinstatement of their registration, can settle 50 percent of their assessed fines and pay a petition fee of P3,060.

The ECIP offers significantly lower rates for fines related to various violations, including non-filing or late filing of the General Information Sheet for both current and previous year and non-filing or late filing of Audited or Certified Financial Statements, including any required attachments for certain corporations, for current and prior years.

The ECIP also covers violations under SEC Memorandum Circular 28, Series of 2020, which mandates the submission of official and alternative email addresses and mobile numbers.

Applications for the ECIP will be accepted from 2 September 2024, until 30 November 2024. Eligible applicants include stock and nonstock corporations, branch offices, representative offices, regional headquarters, and regional operating headquarters of foreign companies.

However, certain corporations are excluded from the program, such as publicly listed companies, public companies and those involved in intra-corporate disputes or with expired corporate terms.