JK&C LIBRARYSEC Memorandum Circular No. 6, s. 2005
Overview
SEC Memorandum Circular No. 6, Series of 2005, dated September 22, 2005, establishes the Consolidated Scale of Fines for specified violations of the Securities Regulation Code (SRC), its Amended Implementing Rules and Regulations (IRR), and applicable rules under the Investment Company Act. The SEC’s official issuance listing confirms the title and date of the circular and classifies it under fees and penalties.
The circular provides administrative penalties according to the nature of the violation and the number of offenses committed. The penalties may include reprimands or warnings, fixed fines, additional amounts based on the number of days of delay, and other regulatory consequences depending on the applicable violation.
For example, the Supreme Court later cited SEC Memorandum Circular No. 6, Series of 2005 as the applicable Consolidated Scale of Fines for violations involving the late filing of annual and quarterly reports. The cited schedule provided different penalties for first, second, and third offenses.
The Consolidated Scale of Fines was subsequently amended. SEC Memorandum Circular No. 4, Series of 2009, for example, amended the 2005 Consolidated Scale of Fines by deleting the word “Warning” as a penalty for a first offense and adding provisions concerning certain public companies.
Full Text
Overview
SEC Memorandum Circular No. 6, Series of 2005, dated September 22, 2005, establishes the Consolidated Scale of Fines for specified violations of the Securities Regulation Code (SRC), its Amended Implementing Rules and Regulations (IRR), and applicable rules under the Investment Company Act. The SEC's official issuance listing confirms the title and date of the circular and classifies it under fees and penalties. The circular provides administrative penalties according to the nature of the violation and the number of offenses committed. The penalties may include reprimands or warnings, fixed fines, additional amounts based on the number of days of delay, and other regulatory consequences depending on the applicable violation. For example, the Supreme Court later cited SEC Memorandum Circular No. 6, Series of 2005 as the applicable Consolidated Scale of Fines for violations involving the late filing of annual and quarterly reports. The cited schedule provided different penalties for first, second, and third offenses. The Consolidated Scale of Fines was subsequently amended. SEC Memorandum Circular No. 4, Series of 2009, for example, amended the 2005 Consolidated Scale of Fines by deleting the word “Warning” as a penalty for a first offense and adding provisions concerning certain public companies.
Short Title / Subject
Consolidated Scale of Fines
Full Text
REPUBLIC OF THE PHILIPPINES
SECURITIES AND EXCHANGE COMMISSION
SEC Building, EDSA, Greenhills, Mandaluyong City
SEC MEMORANDUM CIRCULAR NO. 6
Series of 2005
CONSOLIDATED SCALE OF FINES
The Commission resolved to approve the following revised administrative penalties for each specified violation of the Securities Regulation Code (SRC) and its Amended Implementing Rules and Regulations (IRR), Investment Company Act (ICA) and ICA Rule 35-1, Pre-Need Rules, and the Financing Company Act and its Implementing Rules:
SRC/IRR Provisions |
Description |
First Offense |
Second Offense |
Third Offense |
Sections 8 and 12; SRC Rules 8 & 12 |
SELLING OR OFFERING FOR SALE OR DISTRIBUTION OF SECURITIES TO THE PUBLIC WITHOUT PRIOR REGISTRATION OR PERMIT TO SELL |
1% of the amount of each transaction or P10,000 per transaction, whichever is higher. |
2% of the amount of each transaction or P20,000 per transaction, whichever is higher. |
6% of the amount of each transaction or P60,000 per transaction, whichever is higher. |
Section 10; SRC Rule 10.1 |
LATE FILING OF NOTICE OF EXEMPTION PURSUANT TO SRC RULE 10.1 (k & l) |
P2,000 plus P100 per day of delay. For listed companies: P10,000 plus P100 per day of delay. |
P4,000 plus P200 per day of delay. For listed companies: P20,000 plus P200 per day of delay. |
P12,000 plus P600 per day of delay. For listed companies: P60,000 plus P600 per day of delay. |
Section 10; SRC Rule 10.1 |
NON-COMPLIANCE WITH THE DISCLOSURE REQUIREMENTS UNDER SRC RULE 10.1 |
P10,000 plus P100 per day of delay. |
P20,000 plus P200 per day of delay. |
P60,000 plus P600 per day of delay. |
Section 14; SRC Rule 14 |
FAILURE TO AMEND REGISTRATION STATEMENT IN ACCORDANCE WITH SRC RULE 14 |
P10,000 plus P100 per day of delay. |
P20,000 plus P200 per day of delay. |
P60,000 plus P600 per day of delay. |
Continuation under Section 14:
SRC/IRR Provision |
Description |
First Offense |
Second Offense |
Third Offense |
Section 14; SRC Rule 14 |
Change in the Qualitative Terms and Conditions of the Securities including work program or use of proceeds |
P10,000 plus P100 per day of delay. |
P20,000 plus P200 per day of delay. |
P60,000 plus P600 per day of delay. |
Official PDF
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Source
Official Source: Securities and Exchange Commission
Official URL: https://www.sec.gov.ph/mc-2005/sec-memorandum-circular-no-06-10/#gsc.tab=0
Citation
Securities and Exchange Commission (SEC), Memorandum Circular, SEC Memorandum Circular No. 6, s. 2005, SEC Memorandum Circular No. 6, s. 2005, 2005-09-22
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Source
Securities and Exchange Commission Official source
Citation
Securities and Exchange Commission (SEC), Memorandum Circular, SEC Memorandum Circular No. 6, s. 2005, SEC Memorandum Circular No. 6, s. 2005, 2005-09-22