SEC Introduces Enhanced Compliance Incentive Plan (ECIP)

The Securities and Exchange Commission (SEC) is offering a chance for eligible corporations to reduce penalties and fines through the Enhanced Compliance Incentive Program (ECIP).

​What is the Enhanced Compliance Incentive Plan (ECIP)?

Enhanced Compliance Incentive Plan (ECIP) is an incentive program that allows corporations, which have failed to submit their annual reports on time, to restore their good standing.
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Non-compliant, delinquent, suspended and revoked corporations may settle their penalties for the late or non-filing of their annual financial statements (AFS), General Information Sheet (GIS) and compliance with SEC Memorandum Circular No. 28, Series of 2020 (MC 28) at significantly lower rates.

What are the covered violations?

• Non-filing of General Information Sheet (GIS) for the latest and prior years.
• Late filing of GIS for GIS for the latest and prior years.
• Non-filing of Financial Statements (AFS), whether audited or certified, including fines for the non-filing of the attachments required for certain corporations, for the latest and prior years.
• Late filing of AFS, including fines for the late filing of the attachments required for certain corporations, for the latest and prior years.
• Non-compliance with SEC Memorandum Circular No. 28, Series of 2020, which requires SEC-registered entities to submit their official and alternate email addresses and mobile phone numbers.

How much are the ECIP fees?

This  program  is  available  to  all  corporations  registered  with  the  SEC, except for those listed below:

• Corporations whose securities are listed on the Philippine Stock Exchange (PSE).
• Corporations whose securities are registered but not listed on the PSE.
• Corporations considered as Public Companies.
• Corporations with intra-corporate dispute.
• Corporations with disputed GIS.
• Corporations with expired corporate term.
• Other  corporations  covered  under  Sec.  17.2  of  RA  No.  8799  or  the Securities Regulation Code.

 
To be eligible for reduced penalties, companies must submit all required documents on or before November 30, 2024. Failure to do so will result in the forfeiture of all paid ECIP fee and assessed penalties.