Purpose of the Memorandum Circular
- Prescribes policy guidelines and procedures for converting the LTO renewal cycle from two years to five years with selectable options.
- Allows licensees to choose renewal cycles based on management style and financial capability.
- Identifies regulatory measures to oversee PSA/PDA operations under selected renewal options.
- Promotes continued coordination between PNP-PADPAO for industry welfare.
Scope and Application
- Applies to all Private Security Agencies (PSAs) and Private Detective Agencies (PDAs) holding regular Licenses to Operate (LTOs).
- Serves as basis for regulatory measures related to license issuance, record-keeping, and operational compliance.
Rationale for the Policy
- Introduces options for renewal cycle lengths to improve management and operational focus of PSAs/PDAs.
- Encourages competitive, healthy private security industry environment.
- Enables licensees to better manage internal and external liabilities.
Policy Guidelines for the Five-Year Cycle with Options
- LTO has regulatory aspects conferring rights and obligations.
- Licensees may choose renewal cycles of two, three, four, or five years upon expiration of current LTO.
- Selected renewal option is binding during its effective term; no changes allowed mid-cycle.
- Annual, interim, and final reports on management and operations are required.
- Current annual license and registration fees and penalties apply; fees are cumulative based on chosen cycle length.
- New or Temporary LTO remains valid for two years unless revoked/suspended earlier.
Procedures for Renewal of Regular LTO
- Renewal governed by relevant sections of the 2003 Revised Rules Implementing RA 5487.
- Applicants must submit a dated and signed letter requesting conversion to a three-, four-, or five-year cycle if desired.
- Letter must be accompanied by Secretary's Certificate and Board Resolution if applicable.
- Must execute an affidavit committing compliance with reportorial requirements per chosen option.
- Payment of cumulative fees and penalties based on current annual rates and selected option is required.
Reportorial Requirements by Option
- Two-year cycle: Annual report by December each year; final report upon renewal application.
- Three-year cycle: Annual report by December; final report at renewal.
- Four-year cycle: Annual report by December; two-year interim report after second year; final report at renewal.
- Five-year cycle: Annual report by December; three-year interim report after third year; final report at renewal.
Effectivity
- Takes effect fifteen days after submission of a copy to the University of the Philippines Law Center.
- Compliance with Sections 3 and 4, Chapter 2, Book VII of E.O. 292 (Revised Administrative Code of 1987), as amended.
Signatory
- Adopted on March 3, 2009.
- Signed by Jesus A. Verzosa, CEO VI Police Director General, Chief, Philippine National Police.