SEC rolls out 2026 Rules of Procedure: A faster and stronger regime

The Securities and Exchange Commission (SEC) officially signed its 2026 Rules of Procedure (RoP) on 11 February, ushering in one of the most significant procedural reforms in the agency’s history.

The new rules will take effect 15 days after publication in a newspaper of general circulation, and will repeal in full the 2016 Rules of Procedure, which governed SEC proceedings for nearly a decade.

At its core, the 2026 RoP is about three things: digitalization, speed, and stronger enforcement.

First, the SEC has fully embraced an electronic-first regime. Aligning with recent Supreme Court issuances on electronic service and filing, the new rules make electronic service the primary mode of service, not merely an alternative.

Service of pleadings, orders, and resolutions will now be made through the official corporate email address registered under SEC Memorandum Circular No. 28 (MC28). This makes the MC28 account legally critical.

Once documents are sent to that address, parties are deemed served, regardless of whether they actually open the email. For companies, this transforms email monitoring from a clerical task into a core compliance obligation.

Second, the rules aggressively target procedural delay. Motions to dismiss are now generally prohibited, except on four limited grounds: lack of jurisdiction of the SEC, prescription, litis pendentia, and res judicata.

All other defenses must be raised in the Answer. This is a clear policy choice to prevent technical motions from stalling cases at the outset and to push disputes toward substantive resolution.

The same philosophy applies to remedies. The 2026 RoP abolishes motions for reconsideration (MR) at the level of Operating Departments.

Parties may no longer seek reconsideration from the same office that issued the ruling. Instead, all challenges must be elevated directly to the Commission en banc, which now serves as the sole body for reconsideration. This removes an entire layer of internal delay and significantly shortens the lifespan of SEC cases.

Third, the new rules substantially strengthen enforcement powers, particularly in consumer protection.

For the first time, the SEC’s authority under the Financial Products and Services Consumer Protection Act (FCPA) is explicitly embedded in its procedural framework. This formalizes the SEC’s role as a frontline regulator of financial consumer rights, beyond traditional corporate and securities regulation.

A major operational shift is found in Cease and Desist Orders (CDO). Previously issued only by the Commission en banc, CDOs may now be issued directly by the Operating Department.

Affected parties may file a Motion to Lift with the same department, subject to appeal to the en banc. This decentralization allows the SEC to respond faster to fraud, scams, and harmful financial schemes, without waiting for full Commission deliberation.

Ultimately, the issuance of MC No. 8, series of 2026, reflects the SEC’s continuing commitment to ease of doing business, investor protection, financial literacy, and the development of the Philippine capital markets.

By modernizing procedures and strengthening enforcement at the same time, the SEC sends a clear signal that regulation is no longer about red tape, but about trust, transparency, and sustainable market growth.