SEC Now Requires Compliance Officers; for Firms Needing Secondary Licenses
Byline: ANA MARIE MACUJA
the Securities and Exchange Commission (SEC) has issued a Circular directing all other companies requiring secondary licenses from the Commission to have a certified compliance officer.
Under the new Circular, financing companies, investment houses, fund managers, distributors and mutual funds, investment companies and pre-need firms are now required to have at least one officer or director certified by examination as compliance officer.
SEC Chair Lilia R. Bautista said designating a certified compliance officer for these companies should ensure that corporate governance principles and practices are observed and laws are complied with.
The certification as compliance officer shall be issued upon passing satisfactorily a written examination as to his proficiency and knowledge in the laws and regulations of the industry where he is associated and on corporate governance principles and practices, the SEC said in its Circular.
Meantime a person already performing the function of a compliance officer pursuant to the Code on Corporate Governance may continue acting as such provided he will pass the said examination within one year from the issuance of this Circular.
The SEC said it will conduct a series of seminars to aid compliance officers in preparing for the written examination. It added it has prepared training modules for these seminars.
Failure to comply with the certification requirement of this Circular shall subject the company to a penalty of R10,000 and R500 per day of delay of compliance, or suspension of authority or registration in case of continued defiance with the aforementioned directive. …