MANILA, Philippines - The Securities and Exchange Commission (SEC) is tightening its watch on pre-need companies to ensure their compliance with reportorial requirements amid a challenging business environment.
The SEC has imposed a basic fine on late submission of annual and interim financial statements by pre-need companies to encourage them to disclose in a timely manner.
A basic fine of P10,000 will be meted out on pre-need firms that will fail to file financial reports on time. This marks the first time the SEC will impose fines on 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 its continued non-submission of financial reports.
The move is in line with efforts to tighten the SEC’s supervision over pre-need firms following the collapse of leading players in the industry as a result of the global economic meltdown.
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. These 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.