MANILA, Philippines - To ensure compliance with its reportorial requirements, the Securities and Exchange Commission (SEC) has imposed a basic fine on the late submission of annual and interim financial statements by pre-need companies.
A basic fine of P10,000 will be meted out on pre-need firms that will fail to file financial reports on time. This is the first time the SEC will impose penalties on the late submission of financial statements by pre-need companies.
SEC spokesperson Gerard Lukban said the fine covers even inactive pre-need companies.
Apart from the basic fine, an erring pre-need company would also need to pay P500 a day for continued non-submission of financial reports.
The move is in line with efforts to tighten its supervision over pre-need firms following the collapse of leading players in the industry as the global economic crisis caused a massive meltdown in financial markets.
To further safeguard the interest of investors, the SEC issued last month a directive requiring pre-need firms to raise their minimum deposit in the industry trust fund.There are currently 22 companies licensed to sell new plans – educational, pension and memorial.
The 22 licensed pre-need firms are AMA Plans, Ayala Plans, Caritas Financial Plans, City Plans, Cocoplans, Danvil Plans, Destiny Financial Plans, Eternal Plans, First Country Plans, First Union Plans, Grayline Plans, Himlayang Pilipino Plans, Loyola Plans Consolidated, Manulife Financial Plans, Mercantile Careplans, Paz Memorial Services, Philam Plans, Provident Plans International Corp., St. Peter Life Plan, Sun Life Financial Plans, Transnational Plans and Trusteeship Plans.