Law Summary
Certification Requirement for Compliance Officers
- Companies must have at least one officer or director who is certified as a compliance officer.
- Certification is obtained by passing a written examination.
- The examination tests proficiency and knowledge in the relevant industry laws and regulations as well as corporate governance principles.
Transition Period for Existing Compliance Officers
- Individuals already functioning as compliance officers under the Code on Corporate Governance may continue in their roles.
- Such individuals are mandated to pass the certification examination within one (1) year from the Circular’s issuance.
Training and Examination Preparation
- The SEC will provide seminars conducted by module to aid compliance officers in preparing for the examination.
- These seminars are comprehensive and intensive to ensure readiness for the exam.
Penalties for Non-Compliance
- Failure to comply with the certification requirement will subject the company to the following penalties:
- A fine of Ten Thousand Pesos (P10,000.00).
- An additional Five Hundred Pesos (P500.00) penalty for each day of delay in compliance.
- Possible suspension of authority or registration in cases of continuous defiance.
Effectivity of the Circular
- The Circular took effect fifteen (15) days after its publication in a newspaper of general circulation in the Philippines.
Official Adoption
- The Circular was officially adopted on 13 May 2004.
- Signed by SEC Chairperson Lilia R. Bautista.