SEC Memorandum Circular No. 4, s. 2002 – Paid-up Capital Requirement for Existing Pre-Need Companies
SEC Memorandum Circular No. 4, s. 2002 prescribes the minimum paid-up capital requirements for existing pre-need companies and provides guidelines for compliance based on the types of pre-need plans offered.
SEC MEMORANDUM CIRCULARS
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SEC Memorandum Circular No. 4, s. 2002
Paid-up Capital Requirement for Existing Pre-Need Companies
Document Number: SEC Memorandum Circular No. 4, s. 2002
Date Issued: April 30, 2002
Issuing Agency: Securities and Exchange Commission
Signed by: Lilia R. Bautista, Chairperson
Overview
SEC Memorandum Circular No. 4, s. 2002 prescribes the minimum paid-up capital requirements for existing pre-need companies pursuant to the Rules on the Registration and Sale of Pre-Need Plans under Section 16 of the Securities Regulation Code. The Circular establishes capitalization requirements based on the types of pre-need plans offered, prescribes compliance periods for companies with capital deficiencies, and reiterates the minimum paid-up capital requirement for newly organized pre-need corporations.
Full Text
SEC MEMORANDUM CIRCULAR NO. 4
Series of 2002
TO: All Pre-Need Plan Issuers
RE: Paid-up Capital Requirement for Existing Pre-Need Companies
In conformity with Rule 2 and other pertinent provisions of the Rules on the Registration and Sale of Pre-Need Plans under Section 16 of the Securities Regulation Code, the guidelines on the minimum paid-up capital requirement of existing pre-need companies are approved as follows:
A. Existing Pre-Need Companies
Type of Pre-Need Plans Minimum Paid-Up Capital
With traditional education plans ₱100,000,000
With three-type plans ₱100,000,000
With two-type plans ₱75,000,000
With one-type plan ₱50,000,000
B.
Pre-need companies selling two (2) to three (3) types of pre-need plans with a minimum paid-up capital of ₱50 million but below ₱75 million shall be authorized to sell only one (1) plan type.
The pre-need companies concerned shall indicate their choice of plan type no later than May 7, 2002.
However, pre-need companies are not precluded from infusing the required paid-up capital to enable such companies to sell the plan types they have been previously authorized to sell.
This shall also apply to companies selling traditional plans but do not meet the ₱100 million paid-up capital requirement.
C.
Pre-need companies with paid-up capital below ₱50 million shall have a non-extendible period up to May 30, 2002 to comply with the ₱50 million paid-up capital requirement for a one-type plan.
Failure to comply shall be a ground for the suspension of the permit to sell.
D.
The minimum paid-up capital of new pre-need corporations shall remain at ₱100 million, regardless of the type or number of pre-need plans to be offered.
For strict compliance.
EDSA, City of Mandaluyong, Metro Manila, Philippines.
April 30, 2002
(Original Signed)
LILIA R. BAUTISTA
Chairperson
Source
Official Source: Securities and Exchange Commission
Official URL: https://appointment.sec.gov.ph/mc-2002/sec-memorandum-circular-no-4/
Citation:
Securities and Exchange Commission. SEC Memorandum Circular No. 4, s. 2002, "Paid-up Capital Requirement for Existing Pre-Need Companies," April 30, 2002.