Question & AnswerQ&A (SEC MEMORANDUM CIRCULAR NO. 6, S. OF 2007)
A 'qualified individual buyer' is a natural person who, at the time of registration, possesses either a minimum annual gross income of Php 25,000,000 for at least two years prior to registration, or a total portfolio investment in securities registered with the SEC of at least Php 10,000,000, or a personal net worth of at least Php 30,000,000; and has securities trading experience of at least one year or has held a position requiring securities expertise for two years.
They must have either a minimum annual gross income of Php 25 million for at least two years before registration, or a total portfolio investment in registered securities of at least Php 10 million, or a personal net worth of at least Php 30 million; and also must have at least one year of securities trading experience personally or through a fund manager, or held responsible positions related to securities trading for two years.
A juridical person with either a minimum annual gross income of Php 100 million for two years prior to registration, a total portfolio investment in registered securities of at least Php 60 million, or a net worth not less than Php 100 million.
The application must include a signed Information Sheet (specific to individual or institutional buyers), proof of qualifications, and copies of income tax returns for the preceding two years as filed and stamped by the BIR.
The registration is valid for two years. Renewal applications must include a favorable recommendation from the authorized registrar and require the Commission's approval.
No, securities purchased by qualified buyers shall not be assigned, transferred, or sold to non-qualified investors.
It took effect on January 15, 2008.
The registry book must be open at all times for review or inspection by the Securities and Exchange Commission to ensure transparency and compliance.
The SEC has the authority to define and issue rules for the determination of a 'qualified buyer,' including registration requirements and qualifications.
The person must either have been engaged in securities trading for at least one year personally or through a fund manager, or have held a position requiring securities knowledge for at least two years, such as legal consultant, financial adviser, broker-dealer salesperson, or bank finance officer.