SEC adopts cloud-based system vs erring firms

MANILA, Philippines — The Securities and Exchange Commission (SEC) will put in place a cloud-based system to catch erring companies.

The so-called Company Investments and Financial Statistics System (CIFSS) will serve as the central database for all the data the SEC receives from all the corporations it monitors.

SEC chairperson Emilio Aquino said the technology is part of the commission’s efforts toward modern governance.

“It is a cloud-based system that will provide reports and information on stock and non stock corporations. The system is envisioned to facilitate compliance monitoring of some names of people for example which we do not want to be incorporators,” Aquino said.

It is envisioned to open up avenues for economic research on Philippine corporations as the ease of retrieving and processing this information will allow economic researchers here and abroad to include the Philippines in cross-country studies.

The SEC will put in the CIFSS the information from the CRS and annual information sheets and industry specific financial statements and other information.

“It will run on fully managed vendor platform that will have its own web portal to accept, validate and process digital file submissions of financial statements,” Aquino said.

Furthermore, the system can generate statistical reports.

For instance, through the platform, the SEC can obtain information on the amount of capital registered by companies, conglomerates’ interlocking relationships, foreign ownership and board representation in registered firms and anti-money laundering compliance.

The system is expected to be put in place within 18 months or in 2019.

Aquino, who was appointed as SEC chairman in June, has been putting in place reforms that seek to improve good governance among corporations.

While he has been cracking the whip on erring companies using technology to illegally solicit investments from the public, Aquino also recognized the benefits technology can bring.

He said cloud-based database or solutions may help the SEC better monitor companies and their compliance to regulatory requirements.