Pre-need firms buck certain provisions of proposed code

The Philippine Federation of Preneed Plan Companies (PFPPC) has objected to certain provisions of the proposed Preneed Plan Code being hatched by lawmakers for being too stiff and specific.

In a position paper submitted to the House of Representatives’ committee on securities and capital markets, Federation president Juan Miguel Vazquez said they are opposed to the preneed bill because "it is both detailed and rigid ... "As such it is dangerous in times of proactive change, for only the act of Congress can amend such, under a tedius and rigorous process."

The PFPPC also wants whichever regulatory agency will be chosen by lawmakers to oversee the industry, to be given a free hand in enforcing relevant rules and regulations at anytime it deems appropraite to further safeguard the interest of investors.

"The preneed bill should be re-written to reflect the vision of the great minds of Congress for the preneed industry and its customer beneficiaries, empowering its chosen regulator to pen and enforce relevant rules and regulations as it deems fit – over the passage of time," Vazquez said.

Vazquez also denied reports that the federation is against being regulated by the Insurance Commission. "If we could have survived the fierce regulation of the Securities and Exchange Commission, we can survive anyone. Ours is not the choice to select the final industry regulator," he said.

Lawwakers are contemplating whether to transfer the jurisdiction of preneed companies under the Insurance Commission or retain it under the SEC.

To provide adequate protection to the public, the SEC has raised the paid-up capital of preneed companies to P100 million, double that of the Insurance Commission’s minimum capital requirement. It also implemented a rigid investment mix, which ensures the proper balance of real estate, equities and liquid assets against cyclical economic downturns. – Zinnia Dela Peña