QuestionsQuestions (SEC Memorandum Circular No. 7)
It is pursuant to Republic Act No. 9510 (Credit Information System Act), with the SEC promulgating the standards and rules for accreditation.
It applies to applicants seeking to establish and operate a Special Accessing Entity, following the procedure set forth in the circular.
The application period must not be less than one (1) month.
The opening must be announced on the Corporation’s website and published in a newspaper of general circulation for at least one (1) week.
A duly accredited private corporation, incorporated in the Philippines, primarily engaged in the Credit Bureau Business.
A stock corporation (domestic or foreign) that must be engaged in the Credit Bureau Business may apply.
The applicant may either (1) operate itself as the SAE or (2) establish a subsidiary to operate as the SAE, subject to post-qualification requirements on form, capitalization, or corporate registration.
It must establish and incorporate a subsidiary in the Philippines as the SAE, which must be majority-owned and controlled by the foreign applicant and comply with prescribed form and capitalization.
Among others: the duly accomplished accreditation application form; corporate documents (certificate of incorporation/ proof of existence; articles and bylaws); GIS and SEC clearance for domestic applicants; company profile and certificate of no derogatory record for foreign applicants; board resolutions authorizing the application and subscription agreement; audited financial statements for the last three years (or as applicable); a detailed business plan; staffing and organizational structure; CVs of board and top officers; and internal security, governance, and policy manuals with board approvals.
The SAE must have a minimum paid-up capital stock of PHP 60,000,000.00.
The circular requires assessment of experience in credit bureau operations; adoption of up-to-date technology (including security, infrastructure, and continuity); governance and risk management framework; competence of key personnel and training capability; and feasibility/commercial soundness of the business plan.
The evaluation period is determined by the Corporation but cannot exceed two (2) months.
Within fifteen (15) working days from receipt of the Evaluation Report or Supplemental Evaluation Report, whichever is later.
No. Denied applicants are informed of the denial and reasons, but the evaluation reports are confidential and are not accessible because they may contain sensitive trade or proprietary information.
Grounds include: failure to implement the business plan or commence full operations within six (6) months; failure to submit periodic reports; fraudulent or false information; violation of confidentiality/misuse/destroying integrity of consolidated credit information; violation of subscription agreement terms; and violation of RA 9510 or related rules/issuances.
Accreditation lasts for five (5) years from the Subscription Agreement date unless revoked/suspended; the SAE must pay yearly subscription fees; it is subject to ongoing supervision; and processing/accessing/disssemination/storage of credit data must be wholly within Philippine jurisdiction, with offshore facilities maintained separately for the SAE’s use.