Title
SEC Circular on Fines for Late Filing Reports
Law
Sec-cfd Memorandum Circular No. 001
Decision Date
Mar 28, 2001
The SEC-CFD Memorandum Circular No. 001 establishes a scale of fines for reporting corporations, imposing penalties for late filings of various reports, with escalating fines for repeated offenses within a 12-month period.
A

Reports Covered by the Fine Scheme

  • Annual Reports
  • Tender Offer Reports
  • Proxy Statements
  • Information Statements
  • Quarterly Reports
  • Current Reports
  • Statements of Beneficial Ownership

Basic Penalties for Late Filing

  • Annual Reports: P100,000.00
  • Tender Offer Reports: P100,000.00
  • Proxy Statements: P100,000.00
  • Information Statements: P100,000.00
  • Quarterly Reports: P50,000.00
  • Current Reports: P50,000.00
  • Statement of Beneficial Ownership: Nominal (exact amount not stated)

Penalties for Subsequent Offenses

  • Second offense fines increase and are higher than the first offense.
  • Third offense fines are higher than the second offense.
  • Specific escalated fines:
    • Tender Offer Report second offense: P150,000.00, third offense: P200,000.00
    • Proxy and Information Statements second offense: P125,000.00, third offense: P150,000.00
    • Quarterly and Current Reports second offense: P75,000.00, third offense: P100,000.00
    • Statement of Beneficial Ownership second offense: P15,000.00 to P25,000.00 depending on percentage category; third offense: P20,000.00 to P30,000.00

Daily Penalties for Delay

  • Fixed amount of penalty imposed per day of delay beyond the filing deadline.
  • Usually set at P100.00 per day for most reports.
  • For Statements of Beneficial Ownership, daily penalties vary between P50.00 and P100.00 depending on percentage categories (5% and 10%).

Definition of Offenses

  • Second and third offenses refer to violations occurring within a 12-month period following the first offense.

Immediate Effectivity

  • The memorandum circular took effect immediately upon adoption on March 28, 2001.

Authority and Adoption

  • Issued by the SEC Chairman, Lilia R. Bautista.
  • Serves as an implementing guideline pursuant to the Securities Regulation Code and its Implementing Rules and Regulations.

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