Consolidated Scale of Fines PDF

CONSOLIDATED SCALE OF FINES
A. REGISTERED CORPORATIONS WITH NO SECONDARY LICENSE
(1) STOCK CORPORATIONS

Department in Charge: COMPANY REGISTRATION AND MONITORING DEPARTMENT
1.1REPORTORIAL REQUIREMENTS
LEGAL BASIS/ VIOLATION FIRST OFFENSE SECOND OFFENSE THIRD OFFENSE
SUBJECT REPORT (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
Section 141 of the Corporation LATE FILING The basis of the penalty is the Total fine plus Total fine plus
Code of the Philippines (CCP) “Total Assets” reported in the 10% of the total fines 15% of the total fine
latest Financial Statements computed computed
GENERAL INFORMATION SHEETS
AND Up to P100,000: 500
ANNUAL FINANCIAL STATEMENTS 100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000: 3,500
Above 10,000,000: 5,000
Section 141 of the CCP NON-FILING The basis of the penalty is the Total fine plus Total fine plus
GENERAL INFORMATION SHEETS “Total Assets” reported in the 10% of the total fine 15% of the total fine
AND latest Financial Statements computed computed
ANNUAL FINANCIAL STATEMENTS
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000: 7,000
Above 10,000,000: 10,000
1
Section 68 of the Securities MATERIAL DEFICIENCY The basis of penalty is the The basis of penalty is the The basis of penalty is the
Regulation Code (SRC); SRC Rule 68 "Total Assets" reported in the "Total Assets" reported in the "Total Assets" reported in
Latest Financial Statements Latest Financial Statements the Latest Financial
ANNUAL FINANCIAL STATEMENTS Statements
Up to 100,000: 500 Up to 100,000: 1,000
100,001 to 500,000: 1,000 100,001 to 500,000: 2,000 Up to 100,000: 2,000
500,001 to 5,000,000: 2,000 500,001 to 5,000,000: 4,000 100,001 to 500,000: 4,000
5,000,001 to 10,000,000: 3,000 5,000,001 to 10,000,000: 6,000 500,001 to 5,000,000:
Above 10,000,000: 4,000 Above 10,000,000: 8,000 8,000
5,000,001 to 10,000,000:
12,,000
Above 10,000,000: 16,000
Section 68 of the SRC; SRC Rule 68 MATERIAL An amount based on the An amount based on the An amount based on the
ANNUAL FINANCIAL STATEMENTS MISSTATEMENT OR above scale or 1/10 of 1% of above scale or 2/10 of 1% of above scale or 4/10 of 1%
MISREPRE-SENTATION the amount of misstatement, the amount of misstatement, of the amount of
whichever is higher whichever is higher misstatement, whichever is
higher
OTHER NON- The basis of penalty is the The basis of penalty is the The basis of penalty is the
COMPLIANCE WITH THE "Total Assets" reported in the "Total Assets" reported in the "Total Assets" reported in
REQUIREMENTS OF SRC Latest Financial Statements Latest Financial Statements the Latest Financial
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
2
1.2. OTHER REQUIREMENTS (These are also applicable to corporations with secondary license and public companies)
REQUIREMENT (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
Section 16 of CCP Changes in the 5,000 5,000 5,000

corporate name without
CORPORATE NAME amendment of the
Articles of Incorporation
Section 16 of CCP Changes in the Principal

5,000 5,000 5,000
Office Address without
PRINCIPAL OFFICE ADDRESS amendment of the
Section 16 of CCP Increase in number of

Board of Directors
BOARD OF DIRECTORS without amendment of
5,000 5,000 5,000
the Articles of
Incorporation
Section 16 of CCP Changes in corporate

10,000 10,000 10,000
purpose without
PURPOSE amendment of the
Section 16 in relation to Section 38 Increase and Decrease

10,000 10,000 10,000
of CCP of the Authorized
INCREASE AND DECREASE IN Capital Stock without
CAPITAL STOCK amendment of the
3
Section 25 of CCP Election of President as 5,000 5,000 5,000

ELECTION OF PRESIDENT AS Secretary and/ or
SECRETARY AND/OR TREASURER Treasurer
Section 25 of CCP Election of a President

5,000 5,000 5,000
who is not a member of
ELECTION OF A PRESIDENT WHO the Board or a
IS NOT A MEMBER OF THE BOARD Stockholder
Section 25 of CCP Election of a Secretary

5,000 5,000 5,000
ELECTION OF A SECRETARY WHO who is not a Filipino
IS NOT A FILIPINO CITIZEN OR A
RESIDENT OF THE PHILIPPINES
Section 43 of CCP Stock Corporations are

EXCESS IN RETAINED EARNINGS prohibited from
retaining surplus profits Retained Earnings less paid-up Retained Earnings less paid-up Retained Earnings less paid-
in excess of one capital x.001 or a minimum of capital x.001 or a minimum of up capital x.001 or a
hundred percent (100%) 1,000.00 1,000.00 minimum of 1,000.00
of their paid in capital
Section 46 of CCP Non-Registration 10,000

BY-LAWS n/a n/a
Late- Registration
1,000 n/a n/a
Section 48 of CCP Changes in Fiscal Year

FISCAL YEAR without amendment of
5,000 5,000 5,000
the By-Laws
4
Section 48 of CCP Changes in the Annual

DATE OF ANNUAL MEETING Date of Meeting
without amendment of 5,000 5,000 5,000
the By-Laws
Section 50 of CCP Non-holding of Meeting

NON-HOLDING OF MEETING 5,000 5,000 5,000
Foreign Investment Act (FIA) and Increase in the Foreign

Memorandum Circular No. 8 Series Equity Percentage
of 1998 without prior 1/5 of 1% of the paid in capital
REGISTRATION registration with the n/a n/a
but not less than 10,000
UNDER FIA Commission
SEC Memorandum Circular No. 6, Domestic Stock

Series of 2006 Corporations with
annual gross sales or
GENERAL FORM FOR FINANCIAL gross revenue of at least
STATEMENTS (GFFS) P5,000,000 shall submit
1,000 plus 1,000 plus
within thirty (30) days Reprimand
100 per day of delay 100 per day of delay
from the last day of
submission of the
Annual Audited Financial
Statements.
Section 74 of CCP LATE FILING OF STOCK

AND TRANSFER BOOK
STOCK AND TRANSFER BOOK 2,000 n/a n/a
5
(2) NON-STOCK CORPORATIONS
2.1REPORTORIAL REQUIREMENTS
Code of the Philippines (CCP) “Total Assets” reported in the 10% of the total fine 15% of the total fine
AND Up to 100,000: 250
ANNUAL FINANCIAL STATEMENTS 100,001 to 500,000 : 750
500,001 to 5,000,000: 1,250
5,000,001 to 10,000,000: 1,750
Above 10,000,000 : 2,500
Section 141 of the CCP NON-FILING The basis of the penalty is the Total fine plus Total fine plus
“Total Assets” reported in the 10% of the total fine 15% of the total fine
GENERAL INFORMATION SHEETS latest Financial Statements computed computed
AND
ANNUAL FINANCIAL STATEMENTS Up to 100,000: 50
100,001 to 500,000 : 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000: 3,500
Above 10,000,000 : 5,000
6
Section 68 of SRC; SRC Rule 68, as MATERIAL DEFICIENCY The basis of penalty is the The basis of penalty is the The basis of penalty is the
amended "Total Assets" reported in the "Total Assets" reported in the "Total Assets" reported in
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
Section 68 of SRC; SRC Rule 68 MATERIAL An amount based on the An amount based on the above An amount based on the
MISSTATEMENT/ above scale or 1/10 of 1% of scale or 2/10 of 1% of the above scale or 4/10 of 1%
ANNUAL FINANCIAL STATEMENTS MISREPRESEN-TATION the amount of misstatement, amount of misstatement, of the amount of
higher
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
7
2.2 OTHER REQUIREMENTS
Section 16 of CCP CHANGES IN THE
CORPORATE NAME CORPORATE NAME 2,500 2,500 2,500
WITHOUT AMENDMENT
OF THE ARTICLES OF
INCORPORATION

PRINCIPAL OFFICE ADDRESS PRINCIPAL OFFICE 2,500 2,500 2,500
ADDRESS WITHOUT
AMENDMENT OF THE
ARTICLES OF
INCORPORATION
Section 16 of CCP INCREASE IN NUMBER

BOARD OF TRUSTEES OF BOARD OF TRUSTEES 2,500 2,500 2,500
WITHOUT AMENDMENT
OF THE ARTICLES OF
INCORPORATION
Section 16 of CCP CHANGES IN CORPORATE

PURPOSE PURPOSE WITHOUT 5,000 5,000 5,000
AMENDMENT OF THE
ARTICLES OF
INCORPORATION
Section 25 of CCP ELECTION OF PRESIDENT

ELECTION OF PRESIDENT AS AS SECRETARY AND/ OR 2,500 2,500 2,500
SECRETARY AND/ OR TREASURER TREASURER
8
Section 25 of CCP ELECTION OF A
ELECTION OF A PRESIDENT WHO PRESIDENT WHO IS NOT 2,500 2,500 2,500
IS NOT A MEMBER OF THE A MEMBER OF THE
BOARD BOARD OF TRUSTEES
Section 25 of CCP ELECTION OF A
2,500 2,500 2,500
ELECTION OF A SECRETARY WHO SECRETARY WHO IS NOT
IS NOT A FILIPINO CITIZEN OR A A FILIPINO
Section 46 of CCP NON-REGISTRATION
5,000 n/a n/a
BY-LAWS
Section 46 of CCP LATE- REGISTRATION
500 n/a n/a
BY-LAWS
Section 48 of CCP CHANGES IN FISCAL
FISCAL YEAR YEAR WITHOUT 2,500 2,500 2,500
AMENDMENT OF THE
BY-LAWS

DATE OF ANNUAL MEETING ANNUAL DATE OF 2,500 2,500 2,500
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
Section 50 of CCP NON-HOLDING OF
2,500 2,500 2,500
NON-HOLDING OF MEETING MEETING
Section 6(d) Guidelines on the LATE REGISTRATION OF
Imposition of Fines or Penalties MEMBERSHIP BOOK
for Non-Compliance with the
1,000 n/a n/a
Reportorial Requirements - 2002
(Section 74)
MEMBERSHIP BOOK
9
(3) FOREIGN CORPORATIONS
3.1 STOCK BRANCH OFFICE
3.1.a. REPORTORIAL REQUIREMENTS

Code of the Philippines and “Total Assets” reported in the 10% of the total fine 15% of the total fine
Memorandum Circular No. 15 latest Financial Statements computed computed
Series of 2006
Up to 100,000 : 1,250
GENERAL INFORMATION SHEETS 100,001 to 500,000: 2,000
AND 500,001 to 5,000,000 : 3,000
ANNUAL FINANCIAL STATEMENTS 5,000,001 to 10,000,000: 4,000
Above 10,000,000: 5,000
Section 141 of the CCP; NON-FILING The basis of the penalty is the Total fine plus Total fine plus
Memorandum Circular No. 15, “Total Assets” reported in the 10% of the total fine 15% of the total fine
Series of 2006 latest Financial Statements computed computed
GENERAL INFORMATION SHEETS Up to 100,000 : 2,500

AND 100,001 to 500,000: 4,000
ANNUAL FINANCIAL STATEMENTS 500,001 to 5,000,000 : 6,000
5,000,001 to 10,000,000: 8,000
Above 10,000,000:10,000
10
Sec. 68 of the SRC; SRC Rule 68 MATERIAL DEFICIENCY The basis of the penalty is the The basis of the penalty is the The basis of the penalty is
“Total Assets” reported in the “Total Assets” reported in the the “Total Assets”
ANNUAL FINANCIAL STATEMENTS latest Financial Statements latest Financial Statements reported in the latest
Financial Statements
Up to 100,000: 500 Up to 100,000: 1,000
100,001 to 500,000: 1,000 100,001 to 500,000: 2,000 Up to 100,000: 2,000
500,001 to 5,000,000: 2,000 500,001 to 5,000,000: 4,000 100,001 to 500,000: 4,000
5,000,001 to 10,000,000: 3,000 5,000,001 to 10,000,000: 6,000 500,001 to 5,000,000:
Above 10,000,000: 4,000 Above 10,000,000: 8,000 8,000
5,000,001 to 10,000,000:
6,000
Above 10,000,000: 8,000
Sec. 68 of the SRC; SRC Rule 68 MATERIAL An amount based on the An amount based on the above An amount based on the
ANNUAL FINANCIAL STATEMENTS MISREPRESENTATION the amount of misstatement, amount of misstatement, of the amount of
whichever is higher whichever is higher misstatement, whichever
is higher
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
11
3.1. b. OTHER REQUIREMENTS
Memorandum Circular No. 15, LATE FILING 1,250 2,500 5,000

Series of 2006
AFFIDAVIT OF NON- OPERATION NON-FILING 2,500 5,000 10,000
Memorandum Circular No. 15 LATE FILING OF PETITION Basic fine: 10,000.00 Basic fine: 10,000.00 Basic fine: 10,000.00
Series of 2006; Section 8 (to change, substitute or Additional: 1,000 per month of Additional:: 1,000 per month of Additional:: 1,000 per
add a Resident Agent) delay delay month of delay
SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT
Section 126 of CCP LATE INITIAL DEPOSIT Basic fine: 10,000.00

Surcharge: 500 per month of
n/a n/a
SECURITIES DEPOSIT delay
Section 126 of CCP INADEQUATE OR LATE Basic fine: 7,000.00 Basic fine: 7,000.00 Basic fine: 7,000.00
ADDITIONAL SECURITIES Surcharge: 500 per month of Surcharge: 1,000 per month of Surcharge: 1,500 per
SECURITIES DEPOSIT DEPOSIT delay delay month of delay
Section 126 of CCP LATE SUBSTITUTION OF

Basic fine: 10,000 Basic fine: 10,000 Basic fine: 10,000.00
MATURED SECURITIES
Surcharge: 500 per month of Surcharge: 1,000 per month of Surcharge: 1,500 per
SECURITIES DEPOSIT DEPOSITED (within 30
delay delay month of delay
days from the date of
maturity)
12
Section 130 of CCP NON-FILING OR LATE

FILING
AMENDED ARTICLES OF Basic fine: 10,000 Basic fine: 10,000
Basic fine: 10,000
INCORPORATION AND BY-LAWS Submission is within sixty
OF FOREIGN CORPORATIONS (60) days after the
LICENSED TO DO BUSINESS IN THE amendment becomes
PHILIPPINES effective.

PURPOSE CORPORATE NAME,
Basic fine: 10,000.00 Basic fine: 10,000.00 Basic fine: 10,000.00
PURPOSE AND ADDITION
OF PURPOSES WITHOUT
FILING A PETITION TO
AMEND LICENSE

Articles of Merger and FILING OF THE ARTICLES
Consolidation of a foreign OF MERGER OR Basic fine: 10,000.00 Basic fine: 10,000.00 Basic fine: 10,000.00
corporation licensed to do WITHDRAWAL OF
business in the Philippines who is LICENSE
party to a merger or consolidation
in its home country or state and Submission is within sixty
filing of withdrawal of license if (60) days after the
the absorbed corporation is the amendment becomes
foreign corporation doing effective.
business in the Philippines
13
3.2 NON-STOCK BRANCH OFFICE/ REPRESENTATIVE OFFICE

Section 141 of the CCP; LATE FILING The basis of the penalty is the Total fine plus Total fine plus
GENERAL INFORMATION SHEETS Up to 100,000: 750

AND 100,001 to 500,000: 1,500
ANNUAL FINANCIAL STATEMENTS 500,001 to 10,000,0000: 2,500
10,000,001 to 100,000,000:
3,500
Above 100,000,000: 5,000
GENERAL INFORMATION SHEETS Up to 100,000: 1,500

AND 100,001 to 500,000: 3,000
10,000,001 to 100,000,000:
7,000
Above 100,000,000: 10,000
14
Section 68 of the SRC; SRC Rule 68 MATERIAL DEFICIENCY The basis of the penalty is the The basis of the penalty is the The basis of the penalty is
“Total Assets” reported in the “Total Assets” reported in the the “Total Assets”
ANNUAL FINANCIAL STATEMENTS latest Financial Statements latest Financial Statements reported in the latest
Financial Statements
Up to 100,000: 500 Up to 100,000: 1,000
100,001 to 500,000: 1,000 100,001 to 500,000: 2,000 Up to 100,000: 2,000
500,001 to 5,000,000: 2,000 500,001 to 5,000,000: 4,000 100,001 to 500,000: 4,000
5,000,001 to 10,000,000: 3,000 5,000,001 to 10,000,000: 6,000 500,001 to 5,000,000:
Above 10,000,000: 4,000 Above 10,000,000: 8,000 8,000
5,000,001 to 10,000,000:
12,000
Above 10,000,000: 16,000
Section 68 of the SRC; SRC Rule 68 MATERIAL An amount based on the An amount based on the above An amount based on the
ANNUAL FINANCIAL STATEMENTS MISREPRESENTATION the amount of misstatement, amount of misstatement, of the amount of
whichever is higher whichever is higher - misstatement, whichever
is higher
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
15
3.2. b. OTHER REQUIREMENTS
Series of 2006
AFFIDAVIT OF NON-OPERATION NON-FILING 2,000 2,000 2,000
Section 8 of CCP; Memorandum LATE FILING OF PETITION Basic fine: 10,000 Basic fine: 10,000 Basic fine: 10,000
Circular No. 15 Series of 2006 (to change, substitute or Surcharge: 1,000 per month of Surcharge: 1,000 per month of Surcharge: 1,000 per month
add a Resident Agent) delay delay of delay
SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT

AMENDED ARTICLES OF FILING Basic fine: 5,000 Basic fine: 5,000 Basic fine: 5,000
INCORPORATION AND BY-LAWS OF
FOREIGN CORPORATIONS Submission is within sixty
LICENSED TO DO BUSINESS IN THE (60) days after the
PHILIPPINES amendment becomes
effective.

PURPOSE CORPORATE NAME,
Basic fine: 5,000 Basic fine: 5,000 Basic fine: 5,000
PURPOSE AND ADDITION
OF PURPOSES WITHOUT
FILING A PETITION TO
AMEND LICENSE
16
3.3 REGIONAL OPERATING HEADQUARTERS

Code of the Philippines; “Total Assets” reported in the 10% of the total fine 15% of the total fine
Memorandum Circular No. 15, latest Financial Statements computed computed
Series of 2006
Up to 100,000: 1,250
GENERAL INFORMATION SHEETS 100,001 to 500,000: 2,000
AND 500,001 to 5,000,000: 3,000
ANNUAL FINANCIAL STATEMENTS 5,000,001 to 10,000,000: 4,000
Above 10,000,000: 5,000
GENERAL INFORMATION SHEETS Up to 100,000: 2,500

AND 100,001 to 500,000: 4,000
5,000,001 to 10,000,000: 8,000
Above 10,000,000: 10,000
17
Section 68 of SRC; MATERIAL DEFICIENCY The basis of the penalty is the The basis of the penalty is the The basis of the penalty is
SRC Rule 68 “Total Assets” reported in the “Total Assets” reported in the the “Total Assets” reported
ANNUAL FINANCIAL STATEMENTS latest Financial Statements latest Financial Statements in the latest Financial
Statements
Up to 100,000 : 500 Up to 100,000 : 1,000 Up to 100,000 : 2,000
100,001 to 500,000 : 1,000 100,001 to 500,000 : 2,000 100,001 to 500,000 : 4,000
500,001 to 5,000,000 : 2,000 500,001 to 5,000,000 : 4,000 500,001 to 5,000,000 : 8,000
5,000,001 to 10,000,000: 3,000 5,000,001 to 10,000,000: 5,000,001 to 10,000,000:
Above 10,000,000: 4,000 6,000 12,000
Above 10,000,000: 8,000 Above 10,000,000: 16,000
Section 68 of SRC; SRC Rule 68 MATERIAL An amount based on the above An amount based on the An amount based on the
MISSTATEMENT/ scale or 1/10 of 1% of the above scale or 2/10 of 1% of above scale or 4/10 of 1% of
ANNUAL FINANCIAL STATEMENTS MISREPRESENTATION amount of misstatement, the amount of misstatement, the amount of
higher
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 500,001 to 5,000,000 : 2,000
Above 10,000,000: 2,0 2,000 5,000,001 to 10,000,000:
Above 10,000,000: 4,000 4,000
Above 10,000,000: 8,000
18
3.3.b. OTHER REQUIREMENTS
Memorandum Circular No. 15 Series Initial Remittance of at
of 2006; Articles 58 & 59 of the least US$200,000 or its Basic fine of 10,000 n/a n/a
Omnibus Investments Code equivalent in other foreign Surcharge: 500 per month of
currencies converted to delay
Philippine currency
(within 30 days after the
issuance of the license)

Series of 2006
AFFIDAVIT NON-OPERATION NON-FILING 2,500 5,000 10,000
Section 131 of CCP Changes in the corporate

Basic fine: 5,000.00 Basic fine: 5,000.00 Basic fine: 5,000.00
name, purpose and
PURPOSE addition of purposes
without filing a petition to
amend license
3.4. REGIONAL AREA HEADQUARTERS


Section 141 of CCP; Memorandum LATE FILING The basis of the penalty is the Total fine plus Total fine plus
Circular No. 15 Series of 2006 “Total Assets” reported in the 10% of the total fine 15% of the total fine
19
GENERAL INFORMATION SHEETS Up to 100,000: 750
AND 100,001 to 500,000: 1,500
10,000,001 to 100,000,000:
3,500
Above 100,000,000: 5,000
Section 141 of CCP; Memorandum NON-FILING The basis of the penalty is the Total fine plus Total fine plus
Circular No. 15 Series of 2006 “Total Assets” reported in the 10% of the total fine 15% of the total fine
AND Up to 100,000: 1,500
ANNUAL FINANCIAL STATEMENTS 100,001 to 500,000: 3,000
500,001 to 10,000,000: 5,000
10,000,001 to 100,000,000:
7,000
Above 100,000,000: 10,000
Section 68 of SRC; MATERIAL DEFICIENCY The basis of the penalty is the The basis of the penalty is the The basis of the penalty is
SRC Rule 68 “Total Assets” reported in the “Total Assets” reported in the the “Total Assets” reported
latest Financial Statements latest Financial Statements in the latest Financial
Up to 100,000: 500 Up to 100,000: 1,000
100,001 to 500,000: 1,000 100,001 to 500,000: 2,000 Up to 100,000: 2,000
500,001 to 5,000,000: 2,000 500,001 to 5,000,000: 4,000 100,001 to 500,000: 4,000
5,000,001 to 10,000,000: 3,000 5,000,001 to 10,000,000: 500,001 to 5,000,000: 8,000
Above 10,000,000: 4,000 6,000 5,000,001 to 10,000,000:
Above 10,000,000: 8,000 12,000
Above 10,000,000: 16,000
20
Section 68 of SRC; MATERIAL An amount based on the above An amount based on the An amount based on the
SRC Rule 68 MISSTATEMENT/ scale or 1/10 of 1% of the above scale or 2/10 of 1% of above scale or 4/10 of 1% of
MISREPRESENTATION amount of misstatement, the amount of misstatement, the amount of
ANNUAL FINANCIAL STATEMENTS whichever is higher whichever is higher misstatement, whichever is
higher
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 500,001 to 5,000,000 : 2,000
Above 10,000,000: 2,000 2,000 5,000,001 to 10,000,000:
Above 10,000,000: 4,000 4,000
Above 10,000,000: 8,000
3.4.b OTHER REQUIREMENTS

Memorandum Circular No. 15,Series Failure to remit the
of 2006; Article 58 & 59 of the required amount within
Omnibus Investments Code the prescribed period
Basic fine of 10,000
Initial Remittance of at least Surcharge: 500 per month of
n/a n/a
US$50,000 or its equivalent in delay
other foreign currencies converted
to Philippine currency (within 30
days after the issuance of the
license)
21
Memorandum Circular No. 15 Series Failure to remit the
of 2006; Article 58 &59 of the required amount within Basic Fine - .003 of the actual Basic Fine - .004 of the actual Basic Fine - .005 of the
Omnibus Investments Code the prescribed period remittance remittance actual remittance
Surcharge of 500 Surcharge of 1,000 per month Surcharge of 1,500 per
Annual Remittance of at least per month of delay of delay month of delay
US$50,000 or its equivalent in
other foreign currencies, converted
to Philippine currency (within 30
days from the anniversary date of
the issuance of the license)
Memorandum Circular No. 15 Series LATE FILING 1,250 2,500 5,000

of 2006
NON-FILING 2,500 5,000 10,000
AFFIDAVIT OF NON-OPERATION

name, purpose and Basic fine: 5000.00 Basic fine: 5,000.00 Basic fine: 5,000.00
PURPOSE addition of purposes
without filing a petition
to amend license
22
(4) FOUNDATIONS
Department in Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
4.1. REPORTORIAL REQUIREMENTS

LEGAL BASIS/ VIOLATION SECOND OFFENSE THIRD OFFENSE
SUBJECT REPORT (Amounts in Pesos) (Amounts in Pesos)
AND Up to 100,000: 250
ANNUAL FINANCIAL STATEMENTS 100,001 to 500,000 : 750
500,001 to 5,000,000: 1,250
5,000,001 to 10,000,000: 1,750
Above 10,000,000 : 2,500
Section 141 of the Corporation NON-FILING The basis of the penalty is the Total fine plus Total fine plus
AND Up to 100,000: 500
ANNUAL FINANCIAL STATEMENTS 100,001 to 500,000 : 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000: 3,500
Above 10,000,000 : 5,000
Section 68 of SRC; SRC Rule 68, as MATERIAL DEFICIENCY The basis of penalty is the The basis of penalty is the The basis of penalty is the
amended "Total Assets" reported in the "Total Assets" reported in the "Total Assets" reported in
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
23
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
Sec. 68 of the SRC; SRC Rule 68 LATE FILING 2,500 5,000 10,000
SUPPORTING DOCUMENTS TO
THE FINANCIAL STATEMENTS: NON-FILING 5,000 10,000 20,000
Sworn Statement by the President
and Treasurer of the Sources,
Amount and Application of Funds
and Program/Activity Planned,
Ongoing and Accomplished (SS)
with Certificate of Existence of
Program/Activity issued by the
Mayor, Barangay Chairman, DSWD,
DOH and/or recipient (COEP)
Section 68 of SRC; SRC Rule 68, as MATERIAL An amount based on the An amount based on the above An amount based on the
amended MISSTATEMENT/ above scale or 1/10 of 1% of scale or 2/10 of 1% of the above scale or 4/10 of 1%
MISREPRESENTATION the amount of misstatement, amount of misstatement, of the amount of
ANNUAL FINANCIAL STATEMENTS whichever is higher whichever is higher misstatement, whichever is
higher
RULE 68 Statements
Up to 100,000: 200 Up to 100,000: 400
100,001 to 500,000: 300 100,001 to 500,000: 600 Up to 100,000: 800
500,001 to 5,000,000 : 500 500,001 to 5,000,000 : 1,000 100,001 to 500,000: 1,200
24
5,000,001 to 10,000,000: 1,000 5,000,001 to 10,000,000: 2,000 500,001 to 5,000,000 :
Above 10,000,000: 2,000 Above 10,000,000: 4,000 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
4.2. OTHER REQUIREMENTS

CORPORATE NAME name without 2,500 2,500 2,500
amendment of the
Section 16 of CCP Changes in the Principal

PRINCIPAL OFFICE ADDRESS Office Address without 2,500 2,500 2,500
amendment of the
Section 16 of CCP Increase in number of

BOARD OF TRUSTEES Board of Trustees 2,500 2,500 2,500
without amendment of
the Articles of
Incorporation
Section 16 of CCP Changes in corporate

purpose without 5,000 5,000 5,000
PURPOSE amendment of the
25
Section 25 of CCP Election of President as
Secretary and/or 2,500 2,500 2,500
ELECTION OF PRESIDENT AS Treasurer
SECRETARY AND/ OR TREASURER
Section 25 of CCP Election of a President

2,500 2,500 2,500
who is not a member of
ELECTION OF A PRESIDENT WHO the Board of Trustees
IS NOT A MEMBER OF THE
BOARD OR A STOCKHOLDER
Section 25 of CCP Election of a Secretary

2,500 2,500 2,500
who is not a Filipino
ELECTION OF A SECRETARY WHO
IS NOT A FILIPINO CITIZEN OR A
Section 46 of CCP NON-REGISTRATION OF 5,000 n/a n/a

BY-LAWS BY-LAWS
Section 46 of CCP LATE REGISTRATION OF

500 n/a n/a
BY-LAWS BY-LAWS
Section 48 of CCP CHANGES IN FISCAL

YEAR WITHOUT 2,500 2,500 2,500
FISCAL YEAR AMENDMENT OF THE
BY-LAWS
Section 48 of CCP CHANGES IN THE 2,500 2,500 2,500

ANNUAL DATE OF
DATE OF ANNUAL MEETING MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
26
Section 50 of CCP NON-HOLDING OF 2,500 2,500 2,500
MEETING
NON-HOLDING OF MEETING
MEMBERSHIP BOOK LATE FILING OF

1,000 n/a n/a
MEMBERSHIP BOOK
B. REGISTERED CORPORATIONS WITH SECONDARY LICENSE
(5) LENDING COMPANIES

Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
5.1. LICENSING REQUIREMENT

Section 4 of LCRA of 2007; Rule Engaging in Lending 50,000 n.a. n.a.
3(b) of its IRR Activities without
Registration as
Corporation
Sec. 4 of LCRA of 2007; Rule 3(b) Operating a Lending 10,000 plus daily penalty and n.a. n.a.
of its IRR Company Head Office for blacklisting and revocation
without a Certificate of of primary franchise (for
CERTIFICATE OF AUTHORITY (CA) Authority from SEC continuous non-compliance)
FOR HEAD OFFICE
27
Sec. 4 of LCRA of 2007; Rule 3(c) Operating a Branch, 10,000 plus 100 daily penalty 15,000 plus 100 daily penalty Suspension of CA
of its IRR Extension, Satellite or
Unit Office without a
CA FOR BRANCH OFFICE Certificate of Authority
from SEC

Sec. 9 of LCRA of 2007; Rule 8(a) LATE-FILING 10,000 plus 20,000 plus Suspension of CA
of its IRR 100 daily 100 daily
AUDITED FINANCIAL
STATEMENTS NON-FILING 25,000 plus 100 daily penalty 30,000 plus 100 daily penalty Suspension of CA
Sections 68 and 54 of the MATERIAL 1/10 of 1% of the amount of 1/20 of 1% of the amount of P30,000 or 1/30 of 1% of
Securities Regulation Code MISSTATEMENT OR misstatement misstatement the amount of
MISREPRESENTATION IN misstatement
ANNUAL FINANCIAL THE AFS
STATEMENTS
MATERIAL DEFICIENCY 1,000 or 500 per material 2,000 or 1,000 per material 4,000 or 2,000 per material
deficiency, deficiency, deficiency,
whichever is higher whichever is higher whichever is higher
OTHER NON- 10,000 20,000 30,000

COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68
28
of its IRR 100 daily 100 daily
INTERIM FINANCIAL NON-FILING 10,000 plus 100 daily penalty 15,000 plus 100 daily penalty Suspension of CA
STATEMENTS
Sections 68 and 54 of SRC MATERIAL 10,000 per FS or 500 per 15,000 per FS or P1,000 per 30,000 per FS or 2,000 per
MISSTATEMENT OR material deficiency, material deficiency, material deficiency,
INTERIM FINANCIAL MISREPRESENTATION whichever is higher whichever is higher whichever is higher
STATEMENTS
MATERIAL DEFICIENCY 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of the
amount of misstatement, amount of misstatement, amount of misstatement,
OTHER NON- P10,000 P20,000 P30,000

COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68
of its IRR 100 daily penalty 100 daily penalty
SPECIAL FORM OF FINANCIAL

STATEMENTS (LCFS) NON-FILING 20,000 plus 100 daily penalty 25,000 plus 100 daily penalty Suspension of CA
(hard and soft copies)
Section 141 of the CCP LATE FILING The basis of the penalty is the Total fine plus Total fine plus
GENERAL INFORMATION SHEET “Total Assets” reported in the 10% of the total fines computed 15% of the total fine
latest Financial Statements computed
29
Up to P100,000: 500
100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000: 3,500
Above 10,000,000: 5,000
Section 141 of CCP NON-FILING The basis of the penalty is the Total fine plus Total fine plus
GENERAL INFORMATION SHEET latest Financial Statements computed Computed
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000: 7,000
Above 10,000,000: 10,000
Rule 17.1(2)(c) of the Amended LATE FILING 10,000 plus 15,000 plus Suspension of CA
IRR of SRC 100 daily penalty 100 daily penalty
ANNUAL INFORMATION NON-FILING 20,000 plus 25,000 plus Suspension of CA

STATEMENT FOR ISSUERS OF 100 daily penalty 100 daily penalty
COMMERCIAL PAPERS
INCOMPLETE REPORT 10,000 plus 10,000 plus Suspension of CA
100 daily penalty 100 daily penalty
Rule 17.1(2)(c) of the Amended LATE FILING 5,000 plus 10,000 plus Suspension of CA
IRR of SRC 100 daily 100 daily
QUARTERLY REPORT FOR
ISSUERS OF COMMERCIAL NON-FILING 10,000 plus 100 daily penalty 15,000 plus 100 daily penalty Suspension of CA
PAPERS
INCOMPLETE REPORT 10,000 15,000 20,000
30
SEC MC no. 2, S. of 2010 LATE FILING 10,000 plus n.a. n.a
REVISED ANTI-MONEY 100 daily penalty
LAUNDERING OPERATING
MANUAL
NON-FILING 20,000 plus n.a. n.a.
100 daily penalty
Sec. 74 of CCP LATE REGISTRATION
STOCK AND TRANSFER BOOK 2,000 n/a n/a
5.3. OPERATIONAL, PRUDENTIAL, OTHER REQUIREMENTS

Sec. 9 of LCRA of 2007; Rule 3(e) FAILURE TO COMMENCE 10,000 20,000 Suspension of CA
of its IRR OPERATION WITHIN 120
DAYS FROM THE DATE
COMMENCEMENT OF OF GRANT OF CA
OPERATION WITHIN 120 DAYS (MAIN AND/OR
BRANCH)
Sec. 9 of LCRA of 2007; Rule LATE PAYMENT OF 10,000 plus 20,000 plus Suspension of CA
3(d)(ii) of its IRR ANNUAL FEE 100 daily penalty 100 daily penalty
ANNUAL FEE NON-PAYMENT OF 25,000 plus 30,000 plus Suspension of CA

ANNUAL FEE 100 daily penalty 100 daily penalty
Sec. 7 of LCRA of 2007; Rule 6(b) Failure to furnish a 20,000 plus 100 per day of 25,000 plus 100 per day of 30,000 plus 100 per day of
of its IRR, SEC MC 7, S. of 2011 debtor with a disclosure continuing violation continuing violation continuing violation
statement that is
DISCLOSURE STATEMENT compliant with the
requirements of BSP
Circular No. 730 dated
July 20, 2011
31
Sec. 9 of LCRA of 2007; Rule 8(a) FAILURE TO ENGAGE THE 25,000 50,000 100,000
of its IRR; Sections 54 and 68 of SERVICES OF AN
SRC EXTERNAL AUDITOR
W/O GROUP C OR
ACCREDITATION HIGHER (A OR B) SEC
OF EXTERNAL AUDITOR ACCREDITATION
Sec.9 of LCRA of 2007; Rule 3(g) of BREACH OF LIMIT 1% of the amount of 3% of the amount of Suspension of CA
its IRR investment in real estate in investment in real estate in
excess of 25% of the excess of 25% of the company’s
INVESTMENT IN REAL ESTATE company’s networth networth
SHALL NOT EXCEED 25% OF THE
COMPANY’S NETWORTH
Sec. 9 of LCRA of 2007; Rule 3(h) BREACH OF LIMIT 1% of the amount of credit 3% of the amount of credit Suspension of CA
extended in excess of 15% of extended in excess of 15% of
TOTAL CREDIT EXTENDED TO THE the company’s networth the company’s networth
COMPANY’S DIRECTORS,
OFFICERS, STOCKHOLDERS AND
RELATED INTERESTS (DOSRI)
Sec 9 of LCRA of 2007; Rule 3(i) of BREACH OF LIMIT 1% of the amount of credit 3% of the amount of credit Suspension of CA
its IRR extended in excess of 30% of extended in excess of 30% of
TOTAL CREDIT EXTENDED TO ANY the company’s networth the company’s networth
PERSON, WHETHER INDIVIDUAL,
PARTNERSHIP OR CORPORATION
(SINGLE BORROWER LIMIT)
32
Sec. 9 of LCRA of 2007; Rule 3(f) PRESCRIBED RATIO NOT 1% of the amount of deficiency 3% of the amount of deficiency Suspension of CA
MET
MORE THAN 50% OF THE FUNDS
MUST BE USED IN LENDING
ACTIVITIES
Sec 12 of LCRA of 2007; Rule 10 of MISREPRESENTATION OR 20,000 P30,000 Suspension of CA

its IRR MISSTATEMENT
INFORMATION IN THE IN ANY

APPLICATION FOR, PERSONAL
INFORMATION SHEET, REPORTS,
AND OTHER DOCUMENTS
REQUIRED TO BE SUBMITTED TO
THE COMMISSION (OTHER THAN
AFS AND INTERIM FS)
Sec. 5 of LCRA of 2007; Rule 4 of Failure to comply with 1% of the amount of deficiency 3% of the amount of deficiency Suspension of CA
its IRR the required capital
and/or maintain a net
MINIMUM REQUIRED CAPITAL worth of not less than
the minimum required
Paid-up Capital
Corporation Code of the VIOLATIONS OF ANY OF

Philippines (CCP) THE PROVISIONS OF THE (Please see pages 3 to 5 (Please see pages 3 to 5 (Please see pages 3 to 5
CCP of this Scale) of this Scale) of this Scale)
REQUIREMENTS FOR A STOCK
CORPORATION
33
(6) FINANCING COMPANIES
Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT

LEGAL BASIS VIOLATION FIRST OFFENSE SECOND OFFENSE THIRD OFFENSE
(Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
SEC 2 of the IRR of the Financing Engaging in Financing P 100,000 n.a. n.a.
Company Act (FCA) Activities without
Certificate of Authority
Sec. 7(c) of FCA of 1998; Sec 4& 5, Operating a Financing 10,000 plus
IRR Company Head Office 100 per day n/a n/a
without a Certificate of
CERTIFICATE OF AUTHORITY (CA) Authority from SEC
FOR HEAD OFFICE
Section 6(a), IRR Operating a Financing 10,000 plus 20,000 plus 100 per day 30,000 plus 100 per day
Company Branch office 100 per day
CERTIFICATE OF AUTHORITY (CA) without a Certificate of
FOR BRANCH Authority from SEC

Section 13(b), IRR LATE-FILING 10,000 plus 100 per day 20,000 plus 100 per day 30,000 plus 100 per day
AUDITED FINANCIAL STATEMENTS
NON-FILING 20,000 plus 100 per day 40,000 plus 100 per day 60,000 plus 100 per day
34
Sections 54 and 68 of SRC; MATERIAL DEFICIENCY 10,000 per AFS or 1,000 per 20,000 per AFS or 2,000 per 40,000 per AFS or 3,000 per
SRC Rule 68 material deficiency, material deficiency, material deficiency,
AUDITED FINANCIAL STATEMENTS whichever is higher whichever is higher whichever is higher
MATERIAL 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 40,000 or 1/30 of 1% of the
MISSTATEMENT OR amount of misstatement, amount of misstatement, amount of misstatement,
MISREPRESENTATION whichever is higher whichever is higher whichever is higher
OTHER NON- 10,000 20,000 30,000

COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68
Sections 54 and 68 of SRC LATE-FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day

STATEMENTS NON-FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day
MATERIAL DEFICIENCY 1,000 2,000 4,000

OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS
Section 13(a), IRR LATE FILING 10,000 plus 100 per day 15,000 plus 100 per day 20,000 plus 100 per day
QUARTERLY FINANCIAL
(up to December 2007 only)
35
Sections 54 and 68 of SRC; MATERIAL DEFICIENCY
SRC Rule 68 MATERIAL
QUARTERLY FINANCIAL MISSTATEMENT OR
STATEMENTS MATERIAL
(up to December 2007 only) MISREPRESENTATION
SEC MC No. 3, S. of 2007 LATE FILING 10,000 plus 100 per day 15,000 plus 100 per day 20,000 plus 100 per day
INTERIM FINANCIAL STATEMENTS NON-FILING 15,000 plus 100 per day 20,000 plus 100 per day 25,000 plus 100 per day
(from January 2008 to present)
MATERIAL DEFICIENCY 10,000 per FS or 500 per 15,000 per FS or 1,000 per 30,000 per FS or 2,000 per
material deficiency, material deficiency, material deficiency,
whichever is higher1 whichever is higher1 whichever is higher1
MATERIAL 10,000 or 1/10 of 1% of the 15,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of the
MATERIAL whichever is higher1 whichever is higher1 whichever is higher1
MISREPRESENTATION
OTHER NON- 10,000 20,000 30,000

COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68
latest Financial Statements Computed
Up to P100,000: 500
100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000:
36
3,500
Above 10,000,000: 5,000
Up to P100,000: 1,000
100,001 to 500,000: 3,00
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000
Anti-Money Laundering Act, as LATE-FILING 10,000 plus

amended 100 daily n/a n/a
ANTI-MONEY LAUNDERING NON-FILING 25,000 plus 100 daily penalty

MANUAL n/a n/a
Revised Code on Corporate LATE-FILING 10,000 plus 20,000 plus Suspension of CA

Governance 100 daily 100 daily
MANUAL ON CORPORATE NON-FILING 25,000 plus 100 daily penalty 30,000 plus 100 daily penalty Suspension of CA
GOVERNANCE

CERTIFICATION BY THE SECRETARY NON-FILING 25,000 plus 100 daily penalty 30,000 plus 100 daily penalty Suspension of CA
ON THE ATTENDANCE OF
DIRECTORS TO MEETING
37
CERTIFICATION BY THE NON-FILING 25,000 plus 100 daily penalty 30,000 plus 100 daily penalty Suspension of CA
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE
Revised Code on Corporate NON-COMPLIANCE WITH 10,000 20,000 Suspension of CA
Governance; Section 54 of SRC ANY OF THE
REQUIREMENTS
OTHER REQUIREMENTS,
INCLUDING COMPLIANCE WITH
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
Sec. 17.1 of SRC; SRC Rule 17.1.2.C LATE FILING 10,000 plus 100 per day 20,000 plus 100 per day 40,000 plus 100 per day
ANNUAL INFORMATION NON-FILING 30,000 plus 100 per day 40,000 plus 100 per day 50,000 plus 100 per day
STATEMENT FOR ISSUER OF
COMMERCIAL PAPERS INCOMPLETE REPORT 10,000 plus 100 per day 20,000 plus 100 per day 40,000 plus 100 per day
Sec. 17.1 of SRC; SRC Rule 17.1.2.C LATE FILING 5,000 plus 10,000 plus Suspension of CA
QUARTERLY REPORT FOR ISSUERS
OF COMMERCIAL PAPERS NON-FILING 10,000 plus 15,000 plus Suspension of CA
INCOMPLETE REPORT 10,000 15,000 20,000
Sec 74 of CCP
STOCK AND TRANSFER BOOK LATE REGISTRATION 2,000 n/a n/a
38
6.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS
SUBJECT REQUIREMENTS (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
Section 5(b)/6d, IRR FAILURE TO OPERATE 10,000 20,000 30,000
WITHIN 120 DAYS FROM
COMMENCEMENT OF GRANT OF CA (MAIN
OPERATIONS AND/OR BRANCH OFFICE)
Section 8, IRR LATE PAYMENT 10,000 plus 100 per day 20,000 plus 100 per day 30,000 plus 100 per day
ANNUAL FEE NON-PAYMENT 20,000 plus 100 per day 30,000 plus 100 per day 40,000 plus 100 per day
Section 9(a), IRR BREACH OF LIMIT 1% of the amount of 2% of the amount of 6% of the amount of
investment in real estate in investment in real estate in investment in real estate in
INVESTMENT IN REAL ESTATE excess of 25% of the compa- excess of 25% of the company’s excess of the compa-
SHALL NOT EXCEED 25% OF THE ny’snetworth networth ny’snetworth
Section 9(b), IRR FUNDS USED IN 1% of the amount of credit 2% of the amount of credit 6% of the amount of credit
FINANCING ACTIVITIES extended in excess of 15% of extended in excess of 15% of extended in excess of 15% of
INVESTMENT OF MORE THAN 50% BELOW THE THRESHOLD the company’s networth the company’s networth the company’s networth
OF FUNDS MUST BE USED IN
FINANCING ACTIVITIES
Section 9(d), IRR TOTAL CREDIT EXTENDED 1% of the amount of credit 2% of the amount of credit 6% of the amount of credit
TO A SINGLE BORROWER extended in excess of 30% of extended in excess of 30% of extended in excess of 30% of
TOTAL CREDIT EXTENDED TO ANY EXCEEDS LIMITS the company’s networth the company’s networth the company’s networth
PERSON, CORPORATION OR FIRM
COMPANY’S NETWORTH (SINGLE
BORROWER LIMIT)
39
Section 9(e), IRR INCORRECT RECOGNITION 1% of the amount of 2% of the amount of 6% of the amount of
OF UNCOLLECTED uncollected interest income uncollected interest income uncollected interest income
UNCOLLECTED INTEREST INCOME INCOME outstanding beyond maturity outstanding beyond maturity outstanding beyond
SHALL NOT BE RECOGNIZED ON date date maturity date
LOANS AND LEASE RECEIVABLES
THAT REMAIN OUTSTANDING
BEYOND THEIR MATURITY DATE
Section 9(f), IRR FAILURE TO SET UP 100% 1% of the amount of 2% of the amount of deficiency 6% of the amount of
ALLOWANCE FOR deficiency deficiency
SETTING OF 100% ALLOWANCE PROBABLE LOSSES
FOR PROBABLE LOSSES IF THE DESPITE PRESENCE OF
CRITERIA IS MET
Sections 11, 2(b) & 6(c),IRR FAILURE TO COMPLY 1% of the amount of 2% of the amount of deficiency 6% of the amount of
WITH THE REQUIRED deficiency deficiency
REQUIRED PAID-UP CAPITAL PAID-UP CAPITAL
AND/OR MAINTAIN A
NETWORTH OF NOT LESS
THAN THE MINIMUM
REQUIRED PAID-UP
CAPITAL
SEC MC No. 7, S. of 2011 FAILURE TO FURNISH A 20,000 plus 25,000 plus 100 per day of 30,000 plus
DEBTOR WITH 100 per day of continuing continuing violation 100 per day of continuing
PROVIDE A DISCLOSURE DISCLOSURE STATEMENT violation violation
STATEMENT TO A BORROWER THAT IS COMPLIANT
WITH BSP CIRCULAR NO.
730 DATED JULY 20, 2011
40
Section 68 of SRC; SRC Rule 68 FAILURE TO ENGAGE THE 25,000 50,000 100,000
SERVICES OF AN
ACCREDITATION OF EXTERNAL EXTERNAL AUDITOR W/O
AUDITOR GROUP C OR HIGHER (A
OR B) SEC
ACCREDITATION

CORPORATION
(7) ISSUERS OF SECURITIES TO THE PUBLIC (LISTED COMPANIES, ISSUERS OF REGISTERED & UNLISTED SECURITIES, MUTUAL FUNDS,
EXCHANGE TRADED FUNDS) AND PUBLIC COMPANIES
Department in Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
7.1. REGISTRATION OF SECURITIES

REQUIREMENTS (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
Sections 8 and 12 of the Securities Selling or distribution of 5% of the amount of each 7% of the amount of each 10% of the amount of each
Regulation Code (SRC); securities to the public transaction or 10,000 per transaction or 20,000 per transaction or 60,000 per
without prior registration or transaction but not less than transaction but not less than transaction but not less than
permit to sell 300,000. 600,000. 1,000,000.
41
Sections 7 and 24 of ICA (for Selling or distribution of 5% of the amount of each 7% of the amount of each 10% of the amount of each
mutual funds); securities to the public transaction or 10,500 per transaction or 21,000 per transaction or 63,000 per
Section 7 of ETF Rules (for without prior registration or transaction but not less than transaction but not less than transaction but not less than
exchange traded funds) permit to sell 300,000. 600,000. 1,000,000.
REGISTRATION OF SECURITIES
Offering for sale of Maximum Maximum Maximum
PRIOR TO PUBLIC OFFERING AND
securities to the public 1,000,000 1,000,000 1,000,000
SALE
without prior registration or (amount may be adjusted (amount may be adjusted (amount may be adjusted
permit to sell depending on mitigating depending on mitigating depending on mitigating
circumstance present) circumstance present) circumstance present)
[see page no. of Circular] [see page no. of the Circular] [see page no. of the Circular]
7.2. EXEMPTION FROM REGISTRATION OF SECURITIES

Section 10 of SRC; SRC Rule 10.1 LATE FILING OF NOTICE 10,000 plus 20,000 plus 60,000 plus
FILING OF NOTICE OF 100 per day of delay 200 per day of delay 600 per day of delay
EXEMPTION PURSUANT TO SRC
RULE 10.1 (K AND L) For listed companies: For listed companies: For listed companies:
20,000 plus 40,000 plus 120,000 plus
100 per day of delay 200 per day of delay 600 per day of delay
42
NON-COMPLIANCE WITH 10,500 plus 21,000 plus 63,000 plus

THE DISCLOSURE 100 per day of delay 200 per day of delay 600 per day of delay
REQUIREMENTS UNDER
SRC RULE 10.1 For listed companies: For listed companies: For listed companies:
21,000 plus 42,000 plus 120,000 plus
500 per day of delay 700 per day of delay 1,000 per day of delay
Section 10.2 of SRC LATE FILING OF REPORT 10,000 plus 100 per day 15,000 plus 150 per day 25,000 plus 250 per day
of delay in filing the report of delay in filing the report of delay in filing the report
FILING OF REPORT SHOWING
NAMES OF OPTIONEES AND For listed companies: For listed companies: For listed companies:
NUMBER OF SHARES SUBSCRIBED 20,000 plus 100 per day 30,000 plus 150 per day 50,000 plus 250 per day
AND AMOUNT PAID of delay in filing the report of delay in filing the report of delay in filing the report
NON-FILING OF REPORT 50,000 plus 200 per day 100,000 plus 300 per day 150,000 plus 500 per day
For listed companies: For listed companies: For listed companies:

100,000 plus 200 per day 150,000.00 plus 300 per day 200,000 plus 500 per day
43
7.3. AMENDMENT OF REGISTRATION STATEMENT OF ISSUERS OF SECURITIES TO THE PUBLIC
Section 14 of SRC; SRC Rule 14 FAILURE TO AMEND

REGISTRATION 10,500 plus 21,000 plus 63,000 plus
AMENDMENT OF REGISTRATION STATEMENT IN ACCORD 100 per day of delay of the 200 per day of delay of the filing 600 per day of delay of the
STATEMENT TO REFLECT A ANCE WITH SRC RULE 14 filing of the amendment of the amendment filing of the amendment
MATERIAL CHANGE Change in the Qualitative
Terms and Conditions of the
Securities including work
program or use of proceeds
INCREASE IN THE NUMBER 5% of the amount of each sale 7% of the amount of each sale in
OF SHARES OR OFFERING in excess of the authorized excess of the authorized shares 10% of the amount of each
PRICE PER SHARE (IN shares or price, or 10,500 per or price, or 21,000 per sale in excess of the
EXCESS OF THE PRICE transaction, whichever is transaction, whichever is higher, authorized shares or price, or
RANGE, IF ANY) WITHOUT higher, plus 100 per day of plus 200 per day of delay of filing 63,000 per transaction,
PRIOR APPROVAL OF THE delay of the filing of the of the amendment. whichever is higher,
AMENDMENT amendment plus 600 per day of delay of
the filing of the amendment.
FAILURE TO TIMELY
PUBLISH THE NOTICE OF 10,500 plus 21,000 plus 63,000 plus
AMENDMENTS 100 per day of delay 200 per day of delay 600 per day of delay
44
7.4. GENERAL REPORTORIAL REQUIREMENTS
(FOR ISSUERS OF SECURITIES, MUTUAL FUNDS, EXCHANGE TRADED FUNDS AND PUBLIC COMPANIES)
REPORT (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
Section 17.1 of SRC; LATE FILING OF 0.0003% of the maximum 0.0006% of the maximum 0.0008% of the maximum
SRC Rule 17.1 (1)(A)(iii) CURRENT REPORT aggregate amount of the total aggregate amount of the total aggregate amount of the
(SEC FORM 17-C) issued and outstanding shares issued and outstanding shares or total issued and outstanding
CURRENT REPORT or 20,000, whichever is higher 30,000, whichever is higher shares or 40,000, whichever
plus 100 per day of delay plus 200 per day of delay is higher
plus 400 per day of delay
NON-FILING OF 0.0006% of the maximum 0.0008% of the maximum 0.001% of the maximum
CURRENT REPORT aggregate amount of the total aggregate amount of the total aggregate amount of the
(SEC FORM 17-C) issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 40,000, whichever is higher 50,000, whichever is higher shares or 60,000, whichever
plus 200 per day of delay plus 300 per day of delay is higher
plus 500 per day of delay
Section 17.1; LATE FILING OF 0.0005% of the maximum 0.001 of the maximum 0.002% of the maximum
SRC Rule 17.1 (1)(A)(ii) QUARTERLY REPORT aggregate amount of the total aggregate amount of the total aggregate amount of the
(SEC FORM 17-Q) issued and outstanding shares issued and outstanding shares or total issued and outstanding
QUARTERLY REPORT or 30,000, whichever is higher 50,000, whichever is higher shares or 70,000, whichever
plus 200 per day of delay plus300 per day of delay is higher
Plus 600 per day of delay
QUARTERLY REPORT aggregate amount of the total aggregate amount of the total aggregate amount of the
(SEC FORM 17-Q) issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 50,000, whichever is higher 100,000, whichever is higher shares or 150,000,
Plus 400 per day of delay Plus 600 per day of delay whichever is higher
Plus 1,000 per day of delay
45
INCOMPLETE 10,000 plus 200 per day 30,000 plus 300 per day 50,000 plus 600 per day
QUARTERLY REPORT until a complete report is filed until a complete report is filed until a complete report is
(SEC FORM 17-Q) filed
MATERIAL DEFICIENCY IN 10,000 per AFS or 5,000 for 20,000 per AFS or 10,000 for 40,000 per AFS or 20,000 for
THE INTERIM FS each material deficiency, each material deficiency, each material deficiency,
MATERIAL MISSTATEMENT 10,000 or 1/100 of 1% of the 20,000 or 1/200 of 1% of the 30,000 or 1/300 of 1% of the
OR MISREPRESENTATION amount of misstatement, amount of misstatement, amount of misstatement,
IN THE INTERIM FS whichever is higher whichever is higher whichever is higher
OTHER NON-COMPLIANCE 10,000 20,000 30,000

WITH THE REQUIREMENTS
OF SRC RULE 68
Section 17.1; LATE FILING OF 0.001% of the maximum 0.002% of the maximum 0.004% of the maximum
SRC Rule 17.1 (1)(A)(i) ANNUAL REPORT aggregate amount of the total aggregate amount of the total aggregate amount of the
(SEC FORM 17-A) issued and outstanding shares issued and outstanding shares or total issued and outstanding
ANNUAL REPORT or 50,000, whichever is higher 100,000, whichever is higher shares or 200,000,
Plus 200 per day of delay plus whichever is higher
500 per day of delay plus
1,000 per day of delay
ANNUAL REPORT aggregate amount of the total aggregate amount of the total aggregate amount of the
(SEC FORM 17-A) issued and outstanding shares issued and outstanding shares or total issued and outstanding
or 200,000, whichever is higher 300,000, whichever is higher shares or 400,000,
Plus 500 per day of delay Plus 1,000 per day of delay whichever is higher
Plus 1,000 per day of delay
46
INCOMPLETE 20,000 plus 200 per day 40,000 plus 500 per day 65,000 plus 1,000 per day
ANNUAL REPORT until a complete report is filed until a complete report is filed until a complete report is
(SEC FORM 17-A) filed
Section 68 of SRC; SRC Rule 68 MATERIAL DEFICIENCY 10,000 for each material 20,000 for each material 40,000 for each material
deficiency deficiency deficiency
AUDITED FINANCIAL
STATEMENTS
MATERIAL MISSTATEMENT 10,000 or 20,000 or 30,000 or
OR MISREPRESENTATION
1/10 of 1% of the amount of 1/20 of 1% of the amount of 1/30 of 1% of the amount of
misstatement, whichever is misstatement, whichever is misstatement, whichever is
higher higher higher
OTHER NON-COMPLIANCE P10,000 20,000 30,000

OF SRC RULE 68
Section 20 [in relation with LATE FILING OF 0.0003% of the maximum 0.0006% of the maximum 0.0008% of the maximum
17.1(b)] SRC Rule 20 INFORMATION aggregate amount of the total aggregate amount of the total aggregate amount of the
STATEMENT issued and outstanding shares issued and outstanding shares or total issued and outstanding
INFORMATION STATEMENT (SEC FORM 20-IS) or 50,000, whichever is higher, 100,000, whichever is higher, shares or 200,000,
plus plus 500 per day of delay whichever is higher plus
200 per day of delay 1,000 per day of delay
47
NON- FILING OF 0.0006% of the maximum 0.0008% of the maximum 0.001% of the maximum
INFORMATION1 aggregate amount of the total aggregate amount of the total aggregate amount of the
STATEMENT issued and outstanding shares issued and outstanding shares or total issued and outstanding
(SEC FORM 20-IS) or P100,000, whichever is 200,000, whichever is higher plus shares or 400,000,
higher plus 1,000 per day of delay whichever is higher plus
INCOMPLETE 20,000.00 plus 200 per day of 40,000.00 plus 500 per day of 80,000.00 plus 1,000 per day
INFORMATION delay of filing an amended delay of filing an amended of delay of filing an amended
STATEMENT statement statement statement
(SEC FORM 20-IS)
FAILURE TO COMPLY WITH 25,000 plus 200 per day 50,000 plus 500 per day 100,000 plus 1,000 per day
ANY OF THE OTHER of continuing violation of continuing violation of continuing violation
PROCEDURAL
REQUIREMENTS OF
SRC RULE 20
Section 17.1 of SRC; SRC Rule 17.1 LATE FILING OF NOTICE 15,000 plus 25,000.00 plus 50,000.00 plus
NOTICE OF SUSPENSION TO FILE 100 per day of delay 200 per day of delay 600 per day of delay
REPORTS (SEC FORM 17-EX)
Section 54 of SRC MISREPRESENTATION OR 105,000 plus 210,000 plus 420,000 plus

MISLEADING STATEMENTS 500 per day of continuing 1,000 per day of continuing 2,000 per day of continuing
IN ANY REPORTS violation violation violation
REQUIRED TO BE
SUBMITTED TO THE
COMMISSION
1
In instances where the company conducted a meeting.
48
7.5. REPORTORIAL AND OTHER REQUIREMENTS FOR BENEFICIAL OWNERS AND ACQUIRERS OF EQUITY SECURITIES
Section 18 of SRC; SRC Rule 18 LATE FILING OF REPORT 1% of the amount of each 2% of the amount of each 3% of the amount of each
purchase or disposition, or transaction, or 20,000 per transaction, or 30,000 per
REPORTS BY 5% OR MORE 10,000 per transaction transaction, whichever is higher transaction, whichever is
HOLDERS OF EQUITY SECURITIES whichever is higher plus 100 plus 200 per day of delay higher plus 300 per day of
(SEC FORM 18-A/18-AS) per day of delay delay
NON-FILING OF REPORT 2% of the amount of each 3% of the amount of each 4% of the amount of each
purchase or disposition, or transaction, or 40,000 per transaction, or 60,000 per
20,000 per transaction transaction, whichever is higher transaction, whichever is
whichever is higher plus 200 plus 300 per day of delay higher plus 500 per day of
per day of delay delay
INCOMPLETE REPORT 10,000 plus 100 per day of 20,000 plus 300 per day of delay of 30,000 plus 600 per day of
delay of the submission of the submission of the amended delay of the submission of
the amended report report the amended report
Section 23 of SRC; SRC Rule 23 LATE FILING OF 1% of the amount of each 2% of the amount of each 3% of the amount of each
STATEMENT purchase or disposition, or transaction, or 20,000 per transaction, or 30,000 per
STATEMENT OF BENEFICIAL 10,000 per transaction transaction, whichever is higher transaction, whichever is
OWNERSHIP (SEC FORM 23-A/B) whichever is higher plus plus 200 per day of delay higher plus 300 per day of
P100 per day of delay delay
NON-FILING OF 2% of the amount of each 3% of the amount of each 4% of the amount of each
STATEMENT purchase or disposition, or transaction, or 40,000 per transaction, or 60,000 per
20,000 per transaction transaction, whichever is higher transaction, whichever is
whichever is higher plus 200 plus 300 per day of delay higher plus 500 per day of
per day of delay delay
49
INCOMPLETE STATEMENT 10,000 plus 100 per day of 20,000 plus 200 per day of delay of 30,000 plus 300 per day of
delay of the submission of the submission of the amended delay of the submission of
the amended report report the amended report
Section 23 of SRC; SRC Rule 23

LATE FILING OF A REPORT 10,000 plus 100 per day of 20,000 plus 200 per day of delay in 30,000 plus 300 per day of
SHOWING QUALIFYING delay in the submission of the submission of the report delay in the submission of
BENEFICIAL OWNERSHIP REPORT SHARES (NOT MORE THAN the report the report
OF DIRECTORS AND OFFICERS 100 SHARES)
SHOWING MORE THAN 100 delay in the submission of the submission of the report delay in the submission of
SHARES BUT LESS THAN 5% the report the report
OF THE OUTSTANDING
EQUITY SECURITIES
SHOWING MORE THAN 5% delay in the submission of the submission of the report delay in the submission of
BUT LESS THAN 10% the report the report
Section 19.1 of SRC; SRC Rule 19.1 LATE FILING OF TENDER 52,500 plus 500 per day of 105,000 plus 1,000 per day of 210,000 plus 2,000 per day
OFFER REPORT (SEC FORM delay delay of delay
TENDER OFFER REQUIREMENTS 19-1) of filing the report of filing the report of filing a the report
NON-FILING OF TENDER 100,000 plus 500 per day of 200,000 plus 1,000 per day of 400,000 plus 2,000 per day
OFFER REPORT (SEC FORM delay of filing the report delay of filing the report of delay of filing a the
19-1) report
50
INCOMPLETE TENDER 31,500 plus 500 per day of 63,000 plus 1,000 per day of delay 130,000 plus 2,000 per day
OFFER REPORT delay of filing the amended of filing the amended report of delay of filing the
(SEC FORM 19-1) report amended report
FAILURE TO CONDUCT A 105,000 or 0.01% of the 210,000 or 0.02% of the aggregate 315,000 or 0.06% of the
TENDER OFFER aggregate amount of the amount of the tender offer, aggregate amount of the
tender offer, whichever is whichever is higher, plus 1,000 per tender offer, whichever is
higher, plus 500 per day of day of continuing violation higher, plus 2,000 per day
continuing violation of continuing violation
FAILURE TO COMPLY WITH 52,500 plus 500 per day of 105,000 plus 1,000 per day of 210,000 plus 2,000 per day
ANY OTHER continuing violation continuing violation of continuing violation
REQUIREMENTS OF SRC
RULE 19-1 AND RELATED
GUIDELINES
Section 54 of the Securities MISREPRESENTATION OR 105,000 plus 210,000 plus 420,000 plus
Regulation Code MISLEADING STATEMENTS 500 per day of continuing 1,000 per day of continuing 2,000 per day of continuing
IN ANY FILINGS REQUIRED violation violation violation
TO BE SUBMITTED TO THE
COMMISSION
7.6. OTHER REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC AND PUBLIC COMPANIES
Section 38 of SRC; SRC Rule 38 FAILURE TO ELECT
INDEPENDENT 50,000 plus 100,000 plus 150,000 plus
ELECTION OF INDEPENDENT DIRECTOR(S) OR ELECTION 200 per day of continuing 500 per day of 1,000 per day of continuing
DIRECTORS OF AN UNQUALIFIED violation continuing violation violation
INDEPENDENT DIRECTORS
51
SERVICES OF AN EXTERNAL
ACCREDITATION AUDITOR WITHOUT A
OF EXTERNAL AUDITOR GROUP A ACREDITATION
Revised Rules Governing Offers of FAILURE TO OBSERVE THE 50,000 plus 100,000 plus 150,000 plus
Pre-emptive Rights and PRESCRIBED PERIODS 200 per day of 500 per day of 1,000 per day of
Declaration of Stock Cash or UNDER THE RULES AND Violation Violation Violation
Property Dividends of CIRCULAR
Corporations whose Securities are
Registered under the Revised
Securities Act; SEC Memorandum
Circular No. 2, Series of 2009
DIVIDEND DECLARATIONS
7.7. ADDITIONAL REQUIREMENTS FOR MUTUAL FUNDS AND EXCHANGE TRADED FUNDS
Section 8 of ICA ELECTION OF CERTAIN 50,000 plus 100,000 plus 150,000 plus
INELIGIBLE AFFILIATED 300 per day of 600 per day of 1,800 per day of
PERSONS AND continuing violation continuing violation continuing violation
UNDERWRITERS
Section 9 of ICA UNAUTHORIZED 52,500 plus 105,000 plus 210,000 plus
AFFILIATIONS OF 300 per day of 600 per day of 1,800 per day of
DIRECTORS, OFFICERS AND continuing violation continuing violation continuing violation
EMPLOYEES
52
Section 10 of ICA PROHIBITED OFFER TO 52,500 plus 105,000 plus 210,000 plus
EXCHANGE SECURITIES 300 per day of 600 per day of 1,800 per day of
continuing violation continuing violation continuing violation
Section 11 of ICA UNAUTHORIZED OR 52,500 plus 105,000 plus 210,000 plus
ILLEGAL ACTIVITIES OF 300 per day of 600 per day of 1,800 per day of
INVESTMENT COMPANIES continuing violation continuing violation continuing violation
(Per illegal activity
/violation)
Section 12 of ICA UNAUTHORIZED CHANGES 52,500 plus 105,000 plus 210,000 plus
IN INVESTMENT POLICY 300 per day of 600 per day of 800 per day of
Section 14 of ICA UNAUTHORIZED 52,500 plus 105,000 plus 210,000 plus

CONTRACTS OF ADVISERS 300 per day of 600 per day of 800 per day of
AND UNDERWRITERS continuing violation continuing violation continuing violation
Sections 22 & 23 of ICA; VIOLATION OF 52,500 plus 105,000 plus 210,000 plus
ICA Rule 35-1 (e) REQUIREMENTS ON 300 per day of 600 per day of 800 per day of
DISTRIBUTION, continuing violation continuing violation continuing violation
REDEMPTION, AND
REPURCHASE OF
SECURITIES
Section 26 of ICA EXCESSIVE PERIODIC 25,000 plus 50,000 plus 100,000 plus
PAYMENT PLAN 100 per day of 300 per day of 600 per day of
Sections 25, 27 and 30 of ICA; ICA FAILURE TO SUBMIT 10,000 plus 20,000 plus 30,000 plus
Rule 35-1(e)(3); REQUIRED REPORTS 100 per day of 200 per day of 400 per day of
AND/OR TO PUBLISH DAILY continuing violation continuing violation continuing violation
PRICES
53
Section 32 of ICA MISREPRESENTATION IN 52,500 plus 105,000 plus 315,000 plus

ANY REPORT 300 per day of 600 per day of 1,800 per day of
ICA Rule 35-1(d); VIOLATION OF RECITED 25,000 plus 50,000 plus 100,000 plus
Section 7.5 of ETF Rules INVESTMENT OBJECTIVES 100 per day of 300 per day of 600 per day of
AND RESTRICTIONS continuing violation continuing violation continuing violation
ICA Rule 35-1(c)(2); NON-DEPOSIT OF SALES 10,500 plus 21,000 plus 52,500 plus
ETF Rules Section 17.1 PROCEEDS TO A 300 per day of 500 per day of 600 per day of
CUSTODIAN BANK continuing violation continuing violation continuing violation
ICA Rule 35-1(c)(3) REDEMPTION OF ORIGINAL 10,000 per redemption 20,000 per redemption 30,000 per redemption
CAPITAL FOR LESS THAN 12
MONTHS
ICA Rule 35-1(i)(2); LATE FILING OF MONTHLY 10,000 plus 20,000 plus 30,000 plus
Section 27.1(a) of ETF Rules SALES/REDEMPTION 100 per day of 200 per day of 400 per day of
REPORT continuing violation continuing violation continuing violation
ICA Rule 35-1(i)(2); NON-FILING OF MONTHLY 20,000 plus 30,000 plus 60,000.00 plus
ETF Rules Section 27.1(a) SALES/REDEMPTION 200 per day of 300 per day of 600 per day of
REPORT continuing violation continuing violation continuing violation
ICA Rule 35-1(e)(3); FAILURE TO EFFECT 10,000 per redemption 20,000 per redemption 30,000 per redemption
ETF Rules Section 26 REDEMPTION REQUEST
WITHIN 7 BANKING DAYS
Section 35 of ICA; FAILURE TO REGISTER AS 50,000 75,000 100,000

ICA Rule 35-1(g)(1) AN INVESTMENT
COMPANY ADVISER
54
7.8. ADDITIONAL REQUIREMENTS FOR EXCHANGE TRADED FUNDS ONLY
Sections 8(4) and (5) of ETF Rules FAILURE TO PUBLISH/ 10,000 plus 20,000 plus 30,000 plus
UPLOAD DAILY 100 per day of 200 per day of 400 per day of
PRICES/NAV/INAV continuing violation continuing violation continuing violation
Section 23 of ETF Rules FAILURE TO P10,000 plus P20,000 plus P30,000 plus
PUBLISH/UPLOAD ON A 100 per day of P200 per day of P400 per day of
DAILY BASIS THE continuing violation continuing violation continuing violation
INFORMATION ON THE
INDEX AND PROTFOLIO
HOLDINGS
(8) INVESTMENT COMPANY ADVISERS/MUTUAL FUND DISTRIBUTORS

Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT

ICA Rule 35-1 (g) (1) FAILURE TO REGISTER AS 50,000 75,000 100,000
AN INVESTMENT
COMPANY ADVISER
Section 28.1, SRC FAILURE TO REGISTER AS 50,000 75,000 100,000

A MUTUAL FUND
DISTRIBUTOR
55
Section 40 of the Investment FAILURE TO REGISTER
Company Act AGENTS & INVESTMENT
SOLICITORS
COMPANY 10,000 15,000 20,000
INDIVIDUAL 5,000 10,000 15,000

SUJBECT REPORT (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
GENERAL INFORMATION SHEET LATE OR NON-FILING See applicable violations See applicable violations for stock See applicable violations
(GIS) for stock corporations corporations for stock corporations
OTHER VIOLATIONS
RELATING TO THE GIS
ANNUAL AUDITED FINANCIAL LATE OR NON-FILING OF 10,000 plus 100/day of 15,000 plus 100/day of delay 20,000
STATEMENTS (AFFS) ANNUAL AUDITED delay plus 100/day of delay
FINANCIAL STATEMENT
(AAFS)
OTHER VIOLATIONS
RELATING TO THE AAFS
SRC Rule 28.1-1.E.2.xiii – FAILURE TO NOTIFY ANY 10,000 basic penalty Plus 30,000 basic penalty Plus 50,000 basic penalty Plus
CHANGE IN 100/day of delay 200/day of delay 300/day of delay
SEC FORM ICA-IA (CHANGE IN INFORMATION WITHIN
INFORMATION) SEVEN (7) DAYS FROM
THE DATE OF THE
OCCURRENCE OF THE
EVENT
56
SRC Rule 28.1-4.C FAILURE TO NOTIFY THE 10,000 basic penalty Plus 30,000 basic penalty Plus 50,000 basic penalty Plus
COMMISSION WITHIN 100/day of delay 200/day of delay 300/day of delay
SEC FORM ICA-T THIRTY(30) DAYS AFTER
THE DISCONTINUATION
OF EMPLOYMENT
SEC FORM ICA-CIS FAILURE TO REPORT ANY 10,000 Plus 100/day of 30,000 Plus 200/day of delay 50,000 Plus 300/day of
CHANGE IN delay delay
INFORMATION IN SEC
FORM ICA –CIS
SEC FORM ICA-CO/AP FAILURE TO REPORT ANY 10,000 Plus 100/day of 30,000 Plus 200/day of delay 50,000 Plus 300/day of
CHANGE IN delay delay
INFORMATION IN SEC
FORM ICA –CO
SEC FORM MFD FAILURE TO REPORT ANY 10,000 basic penalty Plus 30,000 basic penalty Plus 50,000 basic penalty Plus
CHANGE IN SEC FORM 100/day of delay 200/day of delay 300/day of delay
MFD
8.3. OTHER REQUIREMENTS

ICA Rule 35-1 (g) (1)-A FAILURE TO MAINTAIN 5,000 plus 100/day of 10,000 plus 100/day of 15,000
THE MINIMUM violation violation plus 100/day of violation
UNIMPAIRED NET
WORTH
57
(9) BROKER DEALER OF SECURITIES , SALESMEN OR ASSOCIATED PERSONS OF BROKER OR DEALER; OTC PARTICIPANTS
Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
Section 28.1 ENGAGING IN THE
BUSINESS OF BUYING
AND SELLING SECURITIES
WITHOUT BEING
REGISTERED AS BROKERS.
DEALERS OF :
EQUITY SECURITIES 100,000 150,000 200,000
PROPRIETARY SHARES 50,000 75,000 100,000
OTHER SECURITIES 50,000 75,000 100,000
SRC Rule 28.1-1 (E) (vi) FAILURE TO REGISTER AS 10,000 plus 25,000 plus 50,000 plus
BRANCH OFFICE 100/day of operation 100/day of operation without 100/day of operation
without registration registration without registration
SRC Rule 28.1-4 ACTING AS A SALESMAN

OR AN ASSOCIATED
PERSON OF ANY BROKER
DEALER WITHOUT
REGISTRATION:
SALESMAN 10,000 15,000 20,000

A. COMPANY 5,000 10,000 15,000
B. INDIVIDUAL
58
ASSOCIATED PERSON 15,000 30,000 30,000
A. COMPANY 10,000 15,000 20,000
B. INDIVIDUAL

SRC Rule 52.1-5 LATE OR NON-FILING 10,000 plus 100/day of 15,000 plus 100/day of delay 20,000
AAFS delay plus 100/day of delay
ANNUAL AUDITED FINANCIAL
STATEMENT (AAFS)
SEC Form 52 – AR
Sections 54 and 68 of SRC; MATERIAL DEFICIENCY 10,000 per AFS or P1,000 20,000 per AFS or 2,000 per 30,000 per AFS or 3,000 per
SRC Rule 68 per material deficiency, material deficiency, material deficiency,
AUDITED FINANCIAL
STATEMENTS MATERIAL 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of the
MISREPRESENTATION whichever is higher whichever is higher whichever is higher

WITH THE
REQUIREMENTS OF SRC
RULE 68

STATEMENTS
59
NON-FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day
MATERIAL DEFICIENCY OR 1,000 2,000 4,000

MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
SRC Rule 49.1-1 LATE FILING OF RBCA 10,000 Plus 100/day of 30,000 Plus 200/day of delay 50,000 Plus 200/day of delay
REPORT INCLUDING delay
SEC Memorandum Circular No. DECLARATION SHEET, [Note: Alternative proposal,
16 series of 2004 SUPPORTING failure to file the RBCA:
DOCUMENTS AND NOT within 7 days – P25k
USING THE REQUIRED within 14 days – P50k plus
FORMAT. suspension]
SRC Rule 49.1-1 FAILURE TO SUBMIT RBCA 25,000 50,000 100,000

REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.
SRC Rule 28.1-1 (E) (xiii) FAILURE TO REPORT 10,000 30,000 50,000
AMENDMENT Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
SEC Form 28-BDA
SRC Rule 28.1-4 (C) FAILURE TO NOTIFY 10,000 Plus 30,000 Plus 50,000 Plus
DISCONTINUATION OF 100/day of delay 200/day of delay 300/day of delay
SEC Form 28-T EMPLOYMENT OF
SALESMAN, ASSOCIATED
PERSON
60
SRC Rule 30.2-6 FAILURE TO TIMELY FILE 10,000 30,000 50,000
THE REPORT Plus 100/day Plus 200/day of delay Plus 300/day of delay
QUARTERLY COMPLIANCE
REPORT
SEC Form BD – 30.2 QCR
SRC Rule 30.1 VIOLATION OF RULES ON 5,000 10,000 25,000

AFFILIATED
SEC Form 30.1 TRANSACTIONS
SRC Rule 28.1-4 (H) FAILURE TO REPORT ANY 10,000 30,000 50,000
CHANGE IN Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
SEC Form 28-AMD INFORMATION IN SEC
FORM 28-S AND SEC
FORM 28-AP
Rules Governing the Trading of LATE OR NON-FILING OF 50,000 75,000 100,000

PSE Shares REPORT ON
TRANSACTIONS/TRADING
OF PSE SHARES
Section 141 of the CCP LATE FILING The basis of the penalty is Total fine plus Total fine plus
GENERAL INFORMATION SHEET the “Total Assets” reported 10% of the total fines 15% of the total fine
in the latest Financial computed Computed
Statements
Up to P100,000: 500
100,001 to 500,000: 1,500
500,001 to 5,000,000:
2,500
5,000,001 to 10,000,000:
3,500
Above 10,000,000: 5,000
61
Section 141 of CCP NON-FILING The basis of the penalty is Total fine plus Total fine plus
the “Total Assets” reported 10% of the total fine 15% of the total fine
GENERAL INFORMATION SHEET in the latest Financial computed Computed
Statements
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000

NON-FILING 25,000 plus 100 daily n/a n/a
ANTI-MONEY LAUNDERING penalty
MANUAL
MANUAL ON CORPORATE NON-FILING 25,000 30,000 Suspension of CA

GOVERNANCE plus 100 daily penalty plus 100 daily penalty

CERTIFICATION BY THE NON-FILING 25,000 30,000 Suspension of CA

SECRETARY ON THE plus 100 daily penalty plus 100 daily penalty
ATTENDANCE OF DIRECTORS TO
MEETING
62
REVISED CODE OF CORPORATE FAILURE TO SUBMIT ANY 25,000 plus 50,000 plus 75,000 plus
GOVERNANCE OF THE REQUIRED 500 per day of delay 1,000 per day of delay 1,250 per day of continuing
CERTIFICATIONS violation
CERTIFICATIONS ON CORPORATE
GOVERNANCE (NB: Covered companies
(I.E. CERTIFICATION BY THE
per SEC Memo Circular
CORPORATE SECRETARY ON THE
ATTENDANCE OF DIRECTORS AND No. 5, S. 2013 are not
CERTIFICATION BY THE COMPLIANCE required to submit these
OFFICERS ON THE EXTENT OF Certifications in view of
COMPLIANCE WITH THE MANUAL OF the implementation of the
CORPORATE GOVERNANCE) ACGR)
ANY 25,000 plus 50,000.00 plus 100,000 plus

MISREPRESENTATION IN 200 per day of continuing 500 per day of continuing 1,000 per day of continuing
THE SUBMITTED MANUAL violation violation violation
ON CORPORATE
GOVERNANCE
ANY VIOLATION OF THE 25,000 plus 50,000.00 plus 100,000 plus

REVISED CODE OF 500 per day of continuing 1,000 per day of continuing 2,000 per day of continuing
CORPORATE violation violation violation
GOVERNANCE (RCCG)
LATE FILING OF THE 50,000 plus 100,000.00 plus Suspension or Revocation

ANNUAL CORPORATE 1,000 per day of continuing 2,000 per day of continuing
GOVERNANCE REPORT violation violation
NON-FILING OF THE 100,000 plus 200,000.00 plus Suspension or Revocation

ANNUAL CORPORATE 1,000 per day of continuing 2,000 per day of continuing
GOVERNANCE REPORT violation violation
63
MISREPRESENTATION/ 25,000 plus 50,000.00 plus 100,000 plus
OMISSION OF 500 per day of continuing 1,000 per day of continuing 2,000 per day of continuing
INFORMATION IN THE violation violation violation
ANNUAL CORPORATE
GOVERNANCE REPORT

CERTIFICATION BY THE
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH NON-FILING 25,000 30,000 Suspension of CA
MANUAL ON CORPORATE plus 100 daily penalty plus 100 daily penalty
GOVERNANCE

OTHER REQUIREMENTS, REQUIREMENTS
OTHER REPRESENTATIONS IN
THE MANUAL OF CORPORATE
GOVERNANCE

SRC Rule 24.1 (b)-1 VIOLATION OF BD – 100,000 BD – 150,000 AP/S – 75,000 BD – 200,000 AP/S –
MANIPULATIVE AP/S – 50,000 100,000
PRACTICES RULE
SRC Rule 24.1 (d)-1 VIOLATION OF BD – 50,000 BD – 100,000 AP/S – 50,000 BD – 150,000 AP/S – 75,000
ADVERTISEMENTS AND AP/S – 25,000
COMMUNICATIONS
WITH PUBLIC RULE
64
SRC Rule 24.1 (d)-2 VIOLATION OF BD – 50,000 BD – 100,000 AP/S – 50,000 BD – 150,000 AP/S – 75,000
PUBLICATION OF AP/S – 25,000
TRANSACTIONS AND
QUOTATIONS RULE
SRC Rule 24.1 (d)-3 VIOLATION OF PAYMENT BD – 100,000 BD – 150,000 AP/S – 75,000 BD – 200,000 AP/S –
TO INFLUENCE MARKET AP/S – 50,000 100,000
PRICES RULE
SRC Rule 24.2-2 VIOLATION OF SHORT BD – 50,000 BD – 100,000 BD – 150,000

SALES RULE AP/S – 25,000 AP/S – 50,000 AP/S – 75,000
SRC Rule 24.2-3 VIOLATION OF BD – 50,000 BD – 100,000 BD – 150,000

PROHIBITION ON AP/S – 25,000 AP/S – 50,000 AP/S – 75,000
GUARANTEES AGAINST
LOSS RULE
SRC Section 25 VIOLATION OF 50,000 75,000 100,000

REGULATION OF OPTION
TRADING RULE
SRC Section 26 VIOLATION OF BD – 100,000 BD – 150,000 BD – 200,000

FRAUDULENT AP/S – 50,000 AP/S – 75,000 AP/S – 100,000
TRANSACTIONS RULE
SRC Rule 26.3-1 VIOLATION OF THE USE 25,000 50,000 100,000

OF INFORMATION
OBTAINED IN FIDUCIARY
CAPACITY
RULE
65
SRC Rule 26.3-2 (b) VIOLATION OF 100,000 150,000 200,000
PROHIBITED
REPRESENTATIONS RULE
SRC Section 27 VIOLATION OF INSIDER BD – 100,000 BD – 150,000 BD – 200,000

TRADING RULE AP/S – 50,000 AP/S – 75,000 AP/S – 100,000
SRC Rule 28.1-1 (E) (viii) FAILURE TO MAINTAIN 10,000 plus 25,000 plus 50,000 plus
REGISTERED AP 100/day of operation without 100/day of operation 100/day of operation
registration without registration without registration
SRC 28.1-1(E)(xi) FAILURE TO MAINTAIN 10,000 30,000 50,000

SEPARATE BANK Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
ACCOUNT FOR CLIENT
FUND
SRC Rule 30.2-1 VIOLATION OF THE 25,000 50,000 100,000

ETHICAL STANDARDS
RULE
SRC Rule 30.2-2 VIOLATION OF 10,000 30,000 50,000

CUSTOMER ORDERS RULE
SRC Rule 30.2-3 VIOLATION OF CLIENT 10,000 30,000 50,000

AGREEMENT RULE
VIOLATION OF CLIENT 25,000 50,000 100,000

AGREEMENT WITH
DISCRETIONARY
ACCOUNT RULE
66
SUITABILITY RULE
TRADING
VIOLATION OF 25,000 50,000 100,000

CHURNING/
EXCESSIVE TRADING
SRC Rule 30.2-5 VIOLATION OF RULES ON 10,000 30,000 50,000
COMMISSIONS &
CHARGES FOR SERVICES
OF BROKER DEALER
SRC Rule 30.2-6 FAILURE TO ESTABLISH/ 15,000 25,000 50,000
MAINTAIN EFFECTIVE
AND APPROPRIATE
COMPLIANCE FUNCTIONS
FAILURE TO INFORM THE 25,000 50,000 100,000
COMMISSION OF
OCCURRENCES OF
MATERIAL NON-
COMPLIANCE WITH LEGAL
REQUIREMENTS , FIRMS
OWN POLICIES AND
PROCEDURES 10,000 30,000 50,000
FAILURE TO REPORT TO
MANAGEMENT ALL
OCCURRENCES OF
MATERIAL NON-
COMPLIANCE BY THE
FIRM OR ITS STAFF WITH 10,000 30,000 50,000
LEGAL AND REGULATORY
REQUIREMENTS
67
FAILURE TO COMPLY
WITH RULE ON
MAINTENANCE OF A
LOGBOOK
SRC Rule 30.2-7 FAILURE TO ESTABLISH, 10,000 30,000 50,000

IMPLEMENT TRAINING
PROGRAM
SEC Rule 32.1 PROHIBITION ON BD – 100,000 BD – 150,000 BD – 200,000

TRADING OF AP/S – 50,000 AP/S – 75,000 AP/S – 100,000
UNREGISTERED
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET
SRC Rule 32.2 (a) VIOLATION OF BEST BD – 50,000 BD – 75,000 BD – 100,000

EXECUTION RULE AP/S – 25,000 AP/S – 50,000 AP/S – 75,000

CUSTOMER FIRST POLICY
SRC Rule 34.1-2 VIOLATION OF CHINESE 25,000 50,000 100,000

WALLS POLICY
SRC Rule 48.1 VIOLATION OF MARGIN 10,000 30,000 50,000

REQUIREMENT
RULE
68
SRC Rule 49.1-1; SEC MC # 16 S VIOLATION OF NET
2004 CAPITAL RULE AND THE
RBCA RULES
BELOW MINIMUM NET Suspension of Operations Suspension of Operations Suspension of Operations

LIQUID CAPITAL OF P5M
OR P2.5M OR 5% OF
AGGREGATE
INDEBTEDNESS
WHICHEVER IS HIGHER;
IN THE CASE OF BROKER
DEALERS R PROPRIETARY
SHARES, BELOW
MINIMUM NET LIQUID
CAPITAL OF P 2.5M or
2.5% OF AGGREGATE
INDEBTEDNESS
WHICHEVER IS HIGHER
IF RBCA RATIO IS BELOW Suspension of Operations Suspension of Operations Suspension of Operations

1.1
IF AGGREGATE Suspension of Operations Suspension of Operations Suspension of Operations

INDEBTEDNESS IN
EXCESS OF 1700% OF ITS
NLC OR RBCA RATIO IS
LESS THAN 1.2, FAILURE
TO NOTIFY THE
COMMISSION ON THE
DAILY BASIS OF ITS NLC
POSITION
69
FAILURE TO CEASE 50,000 plus 10,000/day of 75,000 plus 15,000/day of 100,000 plus 20,000/day of
OPERATION IF (1) violation violation violation
MINIMUM RBCA RATIO
OF 1.1; OR (2) THE
MINIMUM NLC IS
BREACHED
FAILURE TO COMPUTE 10,000 plus 100/day of 30,000 plus 200/day of 50,000 plus 300/day of
NET RBCA MARGIN AND violation violation violation
RBCA RATIO ON A DAILY
BASIS
FAILURE TO SUBMIT 10,000 plus 100/day of 30,000 plus 200/day of 50,000 plus 300/day of
REPORTS WHICH REFLECT violation violation violation
RBCA RATIO AND RBCA
MARGIN UPON REQUEST
AGGREGATE 10,000 plus 100/day of 30,000 plus 200/day of 50,000 plus 300/day of
INDEBTEDNESS IN EXCESS violation violation violation
OF 1700% OF ITS NLC
CORE EQUITY GREATER 10,000 plus 100/day of 30,000 plus 200/day of 50,000 plus 300/day of
THAN OPERATIONAL RISK violation violation violation
REQUIREMENT IS
BERACHED
NON-COMPLIANCE WITH 10,000 plus 100/day of 30,000 plus 200/day of 50,000 plus 300/day of
THE MINIMUM violation violation violation
UNIMPAIRED PAID-UP
CAPITAL
NON-SUBMISSION OF 10,000 plus 100/day of 30,000 plus 200/day of 50,000 plus 300/day of
CAPITAL BUILD-UP PLAN violation violation violation
70
AND/OR FAILURE TO
EFFECT PROPOSAL
(MEASURES TO BE TAKEN)
WITHIN 10 DAYS
ERRONEOUS 10,000 30,000 50,000

COMPUTATION OF RBCA
REQUEST
NOT USING THE 10,000 30,000 50,000

REQUIRED FORMAT
SRC Rule 49.1-1(H) VIOLATION OF 10,000 30,000 50,000

LIMITATION ON
WITHDRAWAL OF EQUITY
CAPITAL
SRC Rule 49.2 VIOLATION OF 10,000 30,000 50,000

CUSTOMER PROTECTION
RESERVES & CUSTODY OF
SECURITIES RULE
SRC Rule 49.2-4 VIOLATION OF SPECIAL 10,000 30,000 50,000

RESERVE BANK ACCOUNT
RULE
SRC Rule 49.3 VIOLATION OF LENDING 10,000 30,000 50,000

AND VOTING CUSTOMERS
SECURITIES RULE
71
SRC Rule 50 VIOLATION OF 10,000 30,000 50,000
PURCHASES AND SALES
ACCOUNT RULE
SRC Rule 52.1-1 VIOLATION OF BOOKS

AND RECORDS RULE
10,000 Plus 200/day of 30,000 Plus 300/day of 50,000
NOT CURRENT violation violation Plus 500/day of violation
NOT AVAILABLE Immediate Suspension
SRC Rule 52.1-2 VIOLATION OF RECORDS

AND RETENTION RULE
PRESERVATION FOR 5 YRS 10,000 30,000 50,000

ACCESSIBLE FOR 2 YRS 10,000 30,000 50,000
CEASED OPERATION 10,000 30,000 50,000
SRC Rule 52.1-4 REPORT OF EXCHANGE 10,000 30,000 50,000

MEMBERS, BROKERS,
DEALERS TRADING
THROUGH MEMBERS

CUSTOMER ACCOUNT
INFORMATION RULE
SRC Rule 52.1-7 VIOLATION OF ORDER 10,000 30,000 50,000

TICKET RULE
72
SRC Rule 52.1-8 VIOLATION OF RULE ON 10,000 30,000 50,000
CUSTOMER ACCOUNT
STATEMENTS
FAILURE TO SEND 10,000 30,000 50,000

CUSTOMER ACCOUNT
STATEMENT MONTHLY

CUSTOMER COMPLAINT
RULE
FAILURE TO PRESERVE 10,000 30,000 50,000

SEPARATE FILE OF
COMPLAINTS RECEIVED
AND ACTION TAKEN
SRC Rule 52.1-10 VIOLATION OF THE 10,000 30,000 50,000
MONTHLY SECURITIES
COUNT BY BROKER,
DEALER RULE
ACCREDITATION SERVICES OF AN
OF EXTERNAL AUDITOR EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION

REQUIREMENTS FOR A STOCK CCP of this Scale) of this Scale) of this Scale)
CORPORATION
73
9.4. ADDITIONAL REQUIREMENTS FOR OTC PARTICIPANTS (SEC MEMORANDUM CIRCULAR NO. 14, SERIES OF 2006 OR
OTC RULES)
SUBJECT MATTER (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
Section 3 of the
OTC Rules
PROHIBITION FROM BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
MAKING, CREATING OR S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
OPERATING AN OTC OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
MAKING, CREATING OR
MARKET NOT IN
OPERATING AN OTC MARKET
ACCORDANCE WITH THE
RULES.
Section 4 of the OTC Rules
REGISTRATION OF BROKER, MAKING, CREATING OR BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
DEALER, SALESMAN AND OPERATING AN OTC S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
ASSOCIATED PERSON OF MARKET WITHOUT BEING OP – minimum of 10,000 OP – min OP – minimum of 50,000
BROKER OR DEALER IN AN OTC REGISTERED AS BROKER, mum of 25,000
MARKET DEALER OR SALESMAN OF
BROKER OR DEALER IN
AN OTC MARKET.
ACTING AS A BROKER, DEALER, ENABLING ANOTHER

SALESMAN OR AN ASSOCIATED PERSON TO MAKE,
PERSON OF BROKER OR DEALER CREATE OR OPERATE AN
WITHOUT BEING REGISTERED OTC MARKET WHERE
AS SUCH PURSUANT SECTION SAID PERSON IS NOT
28 OF THE SRC AUTHORIZED TO ACT AS
BROKER, DEALER OR
74
SALESMAN IN AN OTC
MARKET.
BROKER’S OR DEALER’S
FAILURE TO CAUSE THE
REGISTRATION OF A
PERSON OR THE
AMENDMENT OF
REGISTRATION OF A
SALESMAN OR
ASSOCIATED PERSON
BEFORE ALLOWING SUCH
PERSON TO ACT AS
SALESMAN OR
ASSOCIATED PERSON OF
A BROKER OR DEALER IN
AN OTC MARKET.
Section 5 of the OTC Rules REGISTRATION OF A BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
GROUP OF PERSONS TO S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
OPERATE AN OTC OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
ACTING IN CONCERT IN
MAKING, CREATING OR
OPERATING AN OTC
MARKET WITHOUT
FORMING AND CAUSING
THE REGISTRATION OF AN
ASSOCIATION OF
75
BROKERS AND/OR
DEALERS PURSUANT TO
SECTION 39 OF THE SRC
Section 6 of the OTC Rules MEMBERSHIP IN AN SRO BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
VIOLATIONS AGAINST OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
THE REQUIREMENT THAT
NO BROKER OR DEALER
SHALL PARTICIPATE IN AN
OTC MARKET UNLESS HE
IS A MEMBER OF AN SRO
Section 7 of the OTC Rules ELIGIBLE INVESTORS IN BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
AN OTC MARKET S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
VIOLATION AGAINST THE
REQUIREMENT THAT A
NON-QUALIFIED
INVESTOR SHALL NOT
PARTICIPATE IN AN OTC
MARKET
SRC Rule 32.1 PROHIBITION ON B/D - P100,000 B/D - P150,000 B/D - P200,000
TRADING OF
UNREGISTERED AP/SP – P50,000 AP/SP – P75,000 AP/SP – P100,000
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET
76
Section 8 of the OTC Rules ELIGIBLE SECURITIES IN BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
AN OTC MARKET S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
VIOLATION AGAINST THE
RULES ON ELIGIBLE
SECURITIES IN AN OTC
Section 10 of the OTC Rules SUBMISSION OF BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
INFORMATION RELATIVE S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
TO THE QUOTATION OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
SYSTEM
VIOLATION OF THE
REQUIREMENTS FOR
SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM
Sections 11, 12, 13 of the OTC OPERATION OF A BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
Rules QUOTATION SYSTEM S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
VIOLATIONS IN THE
OPERATION OF A
QUOTATION SYSTEM BY
A DEALER, BROKER, OR
BY A GROUP OF BROKERS
AND/OR DEALERS
77
Section 14 of the OTC Rules INTEGRATION OF THE BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
QUOTATION SYSTEMS S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
FAILURE TO COMPLY
WITH ORDER FOR
ELECTRONIC
INTEGRATION
FAILURE TO COMPLY
WITH ORDER TO PROVIDE
THE COMMISSION WITH
ACCESS AND LINKAGE
Section 15 of the OTC Rules REQUIRED INFORMATION BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
BEFORE INITIATION OR S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
RESUMPTION OF OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
QUOTATIONS
FAILURE TO MAINTAIN
REQUIRED INFORMATION
BEFORE INITIATION OR
RESUMPTION OF
QUOTATIONS.
Section 16 of the OTC Rules TRADE REPORTING BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
OBLIGATIONS S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
FAILURE TO COMPLY
WITH TRADE REPORTING
OBLIGATIONS AS
PRESCRIBED BY THE
RULES.
78
Section 17 of the OTC Rules APPROVAL OF A CENTRAL BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
TRADE REPORTING S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
SYSTEM OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
OPERATING OR
PROVIDING A CENTRAL
TRADE REPORTING
SYSTEM WITHOUT THE
PRIOR APPROVAL OF THE
COMMISSION.
Section 18 of the OTC Rules CAPITAL ADEQUACY In case of breach by a bank,

REQUIREMENTS AND the Commission shall impose
REPORTS the corresponding sanctions
being enforced on broker or
FAILURE TO MEET dealer as if the violation is a
CAPITAL ADEQUACY breach of SRC Rules on RBCA
REQUIREMENTS AND TO
SUBMIT REPORTS. In case of breach by a
qualified investor, the
Commission may declare the
entity as being unfit to
continue participating as a
qualified investor in the OTC
market.
Section 19 of the OTC Rules COMMISSIONS, CHARGES BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
AND FEES S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
VIOLATIONS IN
CHARGING
COMMISSIONS AND FEES
IN OTC TRANSACTIONS.
79
Section 20 of the OTC Rules CLEARING AND BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
SETTLEMENT S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
VIOLATIONS IN CLEARING OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
AND SETTLEMENT OF OTC
TRANSACTIONS.
Section 22 of the OTC Rules ENGAGING IN UNLAWFUL BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
UNLAWFUL ACTS ACTS AS ENUMERATED IN S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
THE OTC RULES. OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
Section 23 of the OTC Rules OTHER PROHIBITED ACTS BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
ENGAGING IN OTHER OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
PROHIBITED ACTS AS
ENUMERATED IN THE OTC
RULES
Section 26 of the OTC Rules FAILURE TO COMPLY BD – minimum of 100,000 BD – minimum of 150,000 BD – minimum of 250,000
WITH THE REQUIREMENT S/AP – minimum of 50,000 S/AP – minimum of 75,000 S/AP – minimum of 100,000
DISPUTE RESOLUTION THAT PARTICIPANTS IN OP – minimum of 10,000 OP – minimum of 25,000 OP – minimum of 50,000
THE OTC MARKET AND
OTHER PERSONS
INVOLVED THEREIN
SHALL INCORPORATE IN
THEIR CLIENT
AGREEMENT,
PARTICIPATION
AGREEMENT OR ANY
OTHER SUITABLE
AGREEMENT PROVISIONS
FOR PROMPT
RESOLUTION OF ANY
DISPUTE THAT MAY
ARISE FROM THE
IMPLEMENTATION OF
SAID AGREEMENT
80
(10) INVESTMENT HOUSES/UNDERWRITER OF SECURITIES
Section 3.E of the Omnibus VIOLATION OF THE RULE Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules ON USE OF THE TERM per day for every day during per day for every day during per day for every day during
“INVESTMENT” which such violation or non- which such violation or non- which such violation or non-
ADVERTISING OR HOLDING compliance continues compliance continues compliance continues
ITSELF OUT AS BEING (Section 16 of the IH Law) (Section 16 of the IH Law) (Section 16 of the IH Law)
ENGAGED IN THE
BUSINESS OF AN
IH/UNDERWRITER OF
SECURITIES WITHOUT A
LICENSE
Section 3.F of the Omnibus FAILURE TO SECURE A Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules LICENSE TO OPERATE A per day for every day during per day for every day during per day for every day during
BRANCH which such violation or non- which such violation or non- which such violation or non-
compliance continues compliance continues compliance continues
(Section 16 of the IH Law) (Section 16 of the IH Law) (Section 16 of the IH Law)
81
Section 4 of the Omnibus Rules VIOLATION OF THE RULE Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
ON UNDERWRITING per day for every day during per day for every day during per day for every day during
REQUIREMENTS which such violation or non- which such violation or non- which such violation or non-
FAILURE TO SECURE (Section 16 of the IH Law) (Section 16 of the IH Law) (Section 16 of the IH Law)
APPROVAL OF
UNDERWRITING
AGREEMENT
NON-SUBMISSION OF
DULY NOTARIZED AND
EXECUTED COPY OF UA

AUDITED FINANCIAL whichever is higher whichever is higher whichever is higher
STATEMENTS
MATERIAL MISSTATEMENT 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of the

OF SRC RULE 68
Section 14.B of the Omnibus LATE OR NON-FILING OF Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the SEC FORM IH-14 AR per day for every day during per day for every day during per day for every day during
Investment Houses Law (ANNUAL REPORT) which such violation or non- which such violation or non- which such violation or non-
82
SEC Form IH-14 AR FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION
OTHER VIOLATIONS
RELATING TO SEC FORM
IH-14 AR
Section 14.A of the Omnibus LATE OR NON-FILING OF Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules and Regulations for SEC FORM IH-14 (QPR- per day for every day during per day for every day during per day for every day during
Investment Houses and QUARTERLY PROGRESS which such violation or non- which such violation or non- which such violation or non-
Universal Banks Registered as REPORTS WITH ATTACHED compliance continues compliance continues compliance continues
Underwriters of Securities QUARTERLY FINANCIAL
(Omnibus Rules); STATEMENTS)
Section 16 of the Investment
Houses Law FAILURE TO USE FORM
PRESCRIBED BY THE
SEC Form IH-14 COMMISSION
OTHER VIOLATIONS
IH-14
OTHER VIOLATIONS
RELATING TO THE
QUARTERLY FINANCIAL
STATEMENTS
Section 14.E of the Omnibus LATE OR NON-FILING OF Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; SEC FORM IHU-A per day for every day during per day for every day during per day for every day during
FAILURE TO USE FORM which such violation or non- which such violation or non- which such violation or non-
Section 16 of the Investment PRESCRIBED BY THE compliance continues compliance continues compliance continues
Houses Law COMMISSION
83
SEC Form IHU-A OTHER VIOLATIONS
IHU-A
SRC Rule 49.1-1 LATE FILING OF RBCA 10,000 Plus 100/day of delay 30,000 Plus 200/day of delay 50,000 Plus 200/day of delay
REPORT INCLUDING
SEC Memorandum Circular No. DECLARATION SHEET,
16 series of 2004 SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.
SRC Rule 49.1-1 FAILURE TO SUBMIT RBCA 25,000 50,000 100,000

REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING DOCUMENTS
AND NOT USING THE
REQUIRED FORMAT
SRC Rule 28.1-4 (C) FAILURE TO NOTIFY 10,000 Plus 30,000 Plus 50,000 Plus
DISCONTINUATION OF 100/day of delay 200/day of delay 300/day of delay
SEC Form 28-T EMPLOYMENT OF
SALESMAN, ASSOCIATED
PERSON
SRC Rule 30.2-6 FAILURE TO FILE 10,000 30,000 50,000

QUARTERLY COMPLIANCE Plus 100/day Plus 200/day of delay Plus 300/day of delay
SEC Form BD – 30.2 QCR REPORT
84
SRC Rule 28.1-4 (H) FAILURE TO REPORT ANY 10,000 30,000 50,000
CHANGE IN INFORMATION Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
SEC Form 28-AMD IN SEC FORM 28-S AND SEC
FORM 28-AP
SPECIAL FORM OF FINANCIAL NON-FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day
STATEMENTS
STATEMENTS
GENERAL INFORMATION SHEET “Total Assets” reported in the 10% of the total fines 15% of the total fine
latest Financial Statements computed Computed
Up to P100,000: 500
100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000:
3,500
Above 10,000,000: 5,000
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000
85
ANTI-MONEY LAUNDERING NON-FILING 25,000

MANUAL plus 100 daily penalty n/a n/a

MANUAL ON CORPORATE NON-FILING 25,000 30,000 plus 100 daily Suspension of CA

GOVERNANCE plus 100 daily penalty penalty


SECRETARY ON THE plus 100 daily penalty plus 100 daily penalty
ATTENDANCE OF DIRECTORS
TO MEETING

COMPLIANCE OFFICERS ON NON-FILING 25,000 30,000 Suspension of CA
THE EXTENT OF COMPLIANCE plus 100 daily penalty plus 100 daily penalty
WITH MANUAL ON
CORPORATE GOVERNANCE
86
REQUIREMENTS
OTHER REQUIREMENTS,
GOVERNANCE

Section 3.A.vi of the Omnibus VIOLATION OF Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the INTERLOCKING DIRECTORS per day for every day during per day for every day during per day for every day during
Investment Houses Law AND OFFICERS which such violation or non- which such violation or non- which such violation or non-
Section 5 of the Omnibus Rules; FAILURE TO EXERCISE DUE Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Section 16 of the Investment DILIGENCE per day for every day during per day for every day during per day for every day during
Houses Law INVESTIGATIONS OF ALL which such violation or non- which such violation or non- which such violation or non-
MATTERS RELATING TO compliance continues compliance continues compliance continues
RULE ON DUE DILIGENCE THE ISSUER AND THE ISSUE
Section 8 of the Omnibus Rules; FAILURE TO COMPLY WITH Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Section 16 of the Investment THE DISTRIBUTION per day for every day during per day for every day during per day for every day during
Houses Law REQUIREMENTS which such violation or non- which such violation or non- which such violation or non-
RULE ON INITIAL PUBLIC
OFFERING DISTRIBUTION
PROCESS
87
Section 9 of the Omnibus Rules; FAILURE TO ENSURE THAT Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Section 16 of the Investment THE INTEREST OF THE per day for every day during per day for every day during per day for every day during
Houses Law FUNDS MANAGED IS which such violation or non- which such violation or non- which such violation or non-
PROMOTED AND THAT THE compliance continues compliance continues compliance continues
OPERATION OF THE FUNDS
RULE ON MANAGEMENT OF IS UNDERTAKEN ON AN
FUNDS ARM’S LENGTH BASIS
Section 10 of the Omnibus COLLECTION OF Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules UNDERWRITING FEES IN per day for every day during per day for every day during per day for every day during
RULE ON UNDERWRITING FEES EXCESS OF 5% OF THE which such violation or non- which such violation or non- which such violation or non-
AMOUNT GENERATED BY compliance continues compliance continues compliance continues
THE UNDERWRITER FOR (Section 16 of the IH Law) (Section 16 of the IH Law) (Section 16 of the IH Law)
THE ISSUER
Section 11. A of the Omnibus UNDERWRITING Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the COMMITMENT per day for every day during per day for every day during per day for every day during
Investment Houses Law UNDERTAKEN IN AN which such violation or non- which such violation or non- which such violation or non-
AMOUNT EXCEEDING compliance continues compliance continues compliance continues
RULE ON UNDERWRITING TWENTY (20) TIMES ITS
COMMITMENT NETWORTH
Section 11. B of the Omnibus VIOLATION OF THE RULE Any or all of the following Any or all of the following Any or all of the following
Rules ON THE MINIMUM sanctions may be imposed by sanctions may be imposed sanctions may be imposed
CAPITALIZATION AND/OR the Commission on any by the Commission on any by the Commission on any
UNIMPAIRED CAPITAL AND Investment House which fails Investment House which Investment House which
SURPLUS to comply with the capital fails to comply with the fails to comply with the
requirement or having capital requirement or capital requirement or
complied, shall fail to having complied, shall fail to having complied, shall fail to
maintain thereafter such maintain thereafter such maintain thereafter such
capital requirement, to wit: capital requirement, to wit: capital requirement, to wit:
88
i. Cease and desist order; i. Cease and desist order; i. Cease and desist order;
ii. Prohibition from ii. Prohibition from ii. Prohibition from
underwriting; underwriting; underwriting;
iii. Prohibition from iii. Prohibition from iii. Prohibition from
extending new loans or extending new loans or extending new loans or
making new investments; making new investments; making new investments;
iv. Suspension of the privilege iv. Suspension of the iv. Suspension of the
to establish and/or open privilege to establish privilege to establish
approved branches, and/or open approved and/or open approved
agencies or offices; and/or branches, agencies or branches, agencies or
v. Other sanctions prescribed offices; and/or offices; and/or
under existing pertinent v. Other sanctions v. Other sanctions
laws, rules and regulations prescribed under existing prescribed under existing
pertinent laws, rules and pertinent laws, rules and
regulations regulations
Section 11.C of the Omnibus NON-COMPLIANCE WITH Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the THE REQUIREMENT THAT per day for every day during per day for every day during per day for every day during
Investment Houses Law WHENEVER AN IH IS which such violation or non- which such violation or non- which such violation or non-
ENGAGED IN THE compliance continues compliance continues compliance continues
MANAGEMENT OF FUNDS,
ITS OFFICER/S AND OTHER
PERSONNEL DIRECTLY
INVOLVED IN THE
MANAGEMENT OF FUNDS
ARE PROHIBITED FROM
SIMULTANEOUSLY OR
CONCURRENTLY BUYING
OR SELLING THE SHARES
OF STOCK OF THE SAME
FIRM THAT THE FUNDS
ARE BUYING AND SELLING
89
Section 11.E of the Omnibus NON-COMPLIANCE WITH Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the THE REQUIREMENT THAT per day for every day during per day for every day during per day for every day during
Investment Houses Law THERE SHALL BE NO which such violation or non- which such violation or non- which such violation or non-
ADVANCES TO DIRECTORS, compliance continues compliance continues compliance continues
OFFICERS AND
STOCKHOLDERS OWNING
AT LEAST 10% OF THE
OUTSTANDING CAPITAL OF
AN IH SHALL BE ALLOWED ,
UNLESS SUFFICIENTLY
COLLATERALIZED, AS
REQUIRED BY BSP
Section 12 of the Omnibus FAILURE TO DERIVE AT Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the LEAST 25% OF ITS per day for every day during per day for every day during per day for every day during
Investment Houses Law ANNUAL GROSS INCOME which such violation or non- which such violation or non- which such violation or non-
FROM UNDERWRITING & compliance continues compliance continues compliance continues
FEE-BASED INCOME OTHER FEE-BASED
REQUIREMENT ACTIVITIES.
Section 13 of the Omnibus FAILURE TO COMPLY WITH Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the CAPITAL ADEQUACY per day for every day during per day for every day during per day for every day during
Investment Houses Law REQUIREMENTS which such violation or non- which such violation or non- which such violation or non-
• SINGLE BORROWER’S compliance continues compliance continues compliance continues
CAPITAL ADEQUACY LIMIT (SBL)
REQUIREMENTS • NETWORTH TO RISK-
ASSETS RATIO
90
Section 15 of the Omnibus FAILURE TO MAINTAIN Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the AND PRESERVE RECORDS per day for every day during per day for every day during per day for every day during
Investment Houses Law OF ALL TRANSACTIONS which such violation or non- which such violation or non- which such violation or non-
AND OTHER DOCUMENTS compliance continues compliance continues compliance continues
BOOKS AND RECORDS RULE FOR FIVE (5) YEARS FROM
THE DATES OF THE
TRANSACTIONS
FAILURE TO PRESERVE AND

STORE RECORDS OF ALL
TRANSACTIONS AND
OTHER DOCUMENTS FOR
FIVE (5) YEARS FROM THE
DATES WHEN THEY WERE
CLOSED
Section 17 of the Omnibus FAILURE TO DISCLOSE TO Fine not exceeding 200.00 Fine not exceeding 200.00 Fine not exceeding 200.00
Rules; Section 16 of the THE COMMISSION THAT per day for every day during per day for every day during per day for every day during
Investment Houses Law THEY ARE ENGAGED IN THE which such violation or non- which such violation or non- which such violation or non-
BUSINESS OF DEALING IN compliance continues compliance continues compliance continues
RULE ON STOCKBROKERAGE GOVERNMENT SECURITIES.
OR DEALERSHIP FUNCTIONS
OF EXTERNAL AUDITOR GROUP B ACREDITATION
91
CORPORATION
(11) SELF REGULATORY ORGANIZATIONS, EXCHANGES

Section 32 VIOLATION OF THE 100,000 200,000 300,000
PROHIBITION ON THE USE
OF UNREGISTERED
EXCHANGE; FAILURE TO
RENEW LICENSE

Section 68 of SRC; SRC Rule 68 LATE-FILING 0.001% of the maximum 0.002% of the maximum 0.004% of the maximum
AUDITED FINANCIAL aggregate amount of the total aggregate amount of the aggregate amount of the
STATEMENTS and issued and outstanding total issued and outstanding total issued and outstanding
shares or 50,000, whichever is shares or 100,000, shares or 200,000,
higher whichever is higher whichever is higher
Plus 200 per day of delay plus plus
92
NON-FILING 0.005% of the maximum 0.01% of the maximum 0.02% of the maximum
aggregate amount of the total aggregate amount of the aggregate amount of the
issued and outstanding shares total issued and outstanding total issued and outstanding
or 200,000, whichever is shares or 300,000, shares or 400,000,
higher whichever is higher whichever is higher
Plus 500 per day of delay Plus 1,000 per day of delay Plus 1,000 per day of delay
AUDITED FINANCIAL whichever is higher1 whichever is higher1 whichever is higher1
STATEMENTS MATERIAL MISSTATEMENT 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of the

OF SRC RULE 68
Sections 54 and 68 of SRC LATE FILING 2,000 plus 100 per day 4,000 plus 100 per day 8,000 plus 100 per day
STATEMENTS
STATEMENTS
SRC Rule 39.1.1(f) LATE FILING OR NON- 20,000 basic penalty 30,000 basic penalty Plus 50,000 Plus 1,500/day
FILING Plus500/day of delay 1,000/day of delay of delay
AUDIT CALENDAR (on or before
the 15th of January of every
year or notify the Commission
of any amendment thereto)
93
SRC Rule 39.1.1 (f) LATE OR NON-FILING 20,000 basic penalty 30,000 basic penalty 50,000
Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
MONTHLY REPORT OF
PERIODIC EXAMINATIONS
(within ten (10) days after the
end of each month)
SRC Rule 30.2.8 LATE OR NON-FILING OF 50,000 75,000 100,000
BLOCK SALE REPORT
SRC Rule 39.1.1(E) LATE OR NON-FILING OF 50,000 75,000 100,000

CEILING/FLOOR ALERTS*
*This should be filed with

the Enforcement and
Investors’ Protection
Department
SRC Rule 39.1.1(j) FAILURE OF SRO TO FILE 50,000 75,000 100,000
REQUIRED REPORT
SRC Rule 39.1.2(c) FAILURE TO AMEND SEC 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
FORM 39 Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
GENERAL INFORMATION SHEET “Total Assets” reported in the 10% of the total fines 15% of the total fine
Up to P100,000: 500
100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000:
3,500
Above 10,000,000: 5,000
94
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000

ANTI-MONEY LAUNDERING
NON-FILING 25,000
MANUAL
plus 100 daily penalty n/a n/a

MANUAL ON CORPORATE
NON-FILING 25,000 plus 100 daily penalty 30,000 plus 100 daily Suspension of CA
GOVERNANCE
penalty

95
CERTIFICATION BY THE NON-FILING 25,000 plus 100 daily penalty 30,000 plus 100 daily Suspension of CA
SECRETARY ON THE penalty
TO MEETING

COMPLIANCE OFFICERS ON
NON-FILING 25,000 30,000 Suspension of CA
THE EXTENT OF COMPLIANCE
plus 100 daily penalty plus 100 daily penalty
WITH MANUAL ON

REQUIREMENTS
OTHER REQUIREMENTS,
GOVERNANCE
11.3. OPERATIONAL PRUDENTIAL AND OTHER REQUIREMENTS

SRC Rule 33.2 (c) NON-COMPLIANT AS TO 100,000 200,000 300,000
COMPOSITION OF THE
BOARD OF AN EXCHANGE
96
SRC Rule 33.2 (c) FAILURE TO COMPLY WITH 100,000 basic penalty plus 150,000 basic penalty plus 200,000 basic penaly plus
THE OWNERSHIP P100/day of delay P100/day of delay P100/day of delay
REQUIREMENT
SRC Rule 33.2 (d) FAILURE OF AN EXCHANGE 100,000 basic penalty plus 150,000 basic penalty plus 200,000 basic penaly plus
TO PROTECT CUSTOMER P100/day of delay P100/day of delay P100/day of delay
ACCOUNTS IN CASE OF
BUSINESS FAILURE
SRC Rule 39.1.1(d) FAILURE TO SUPERVISE 50,000 75,000 100,000

LISTED COMPANIES
SRC Rule 39.1.1(e) FAILURE TO COMPLY WITH 50,000 75,000 100,000

REQUIREMENTS ON
COMPLIANCE AND
SURVEILLANCE
SRC Rule 39.1.1(g) FAILURE TO INVESTIGATE 50,000 75,000 100,000

SUSPECTED VIOLATION OF
THE SECURITIES LAW AND
SRO RULES BASED ON
COMPLAINTS,
EXAMINATION/AUDIT
FINDINGS OR UNUSUAL
TRADING ACTIVITIES OR
VERIFIED REFERRALS
FROM A MEMBER,
TRADING PARTICIPANT,
SRO OTHER THAN AN
EXCHANGE, CLEARING
AGENCY, TRANSFER
AGENT, ANY REGISTERED
PERSON, OR THE
97
COMMISSION AND TAKE
DISCIPLINARY ACTION,
WHERE APPROPRIATE,
PURSUANT TO SRO RULES
SRC Rule 39.1-1 (F) FAILURE OF SRO TO SEND 50,000 75,000 100,000
DEFICIENCY LETTER, IF
WARRANTED
SRC Rule 39.1-1 (F) FAILURE OF SRO TO 50,000 75,000 100,000

INITIATE INVESTIGATION,
IF WARRANTED
SRC Rule 39.1-1 (G-i) FAILURE OF SRO TO 50,000 75,000 100,000
INVESTIGATE SUSPECTED
VIOLAITIONS OF SRC
SECTIONS 24, 26, 27
SRC Rule 39.1-1 FAILURE OF SRO TO 50,000 75,000 100,000

(G-ii) INVESTIGATE VIOLATION
OF RULES ON SALES
PRACTICES, ETC
SRC Rule 39.1-1 (G-iii) FAILURE OF SRO TO 10,000 30,000 50,000

NOTIFY THE COMMISSION
OF INVESTIGATION OF SRC
SECTIONS 24,26,27
SRC Rule 39.1.1(h)/SRC Rule FAILURE TO DISCIPLINE A 50,000 75,000 100,000
40.6 MEMBER, INCLUDING
SUSPENSION OR
EXPULSION OF A MEMBER,
IF SUCH PERSON HAS BEEN
FOUND TO HAVE BEEN
98
ENGAGED IN A VIOLATION
OF SRO RULES OF
PROVISIONS OF THE
SECURITIES LAW,
INCLUDING BUT NOT
LIMITED TO, ILLEGAL SALES
PRACTICES, FINANCIAL
AND OPERATIONAL
REQUIREMENTS, TRADING
AND FLOOR RELATED
VIOLATIONS, AND/OR
VIOLATION OF SRO
LISTING RULES
SRC Rule 39.1.1(i) FAILURE TO COMPLY WITH 50,000 75,000 100,000

DISCIPLINARY ACTION OF
THE COMMISSION
SRC Rule 39.1.2(b) FAILURE TO REGISTER AS 100,000 200,000 300,000

AN SRO
SRC Rule 39.1.2(f) FAILURE OF SRO TO SEND 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
TO THE COMMISSION Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
COPIES OF ANY NOTICES,
REPORTS OR RECORDS OF
CHANGES COVERED BY
AMENDMENTS
SRC Rule 39.1.3 FAILURE TO COMPLY WITH 20,000 basic penalty Plus 30,000 basic penalty Plus 50,000 Plus 1,500/day of
RULES ON ALLOCATION OF 500/day of delay 1,000/day of delay delay
REGULATORY
RESPONSIBILITIES AMONG
SROS
99
SRC Rule 40.2 FAILURE OF SRO TO 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
COMPLY WITH SRC Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
PROVISIONS, THE RULES
AND REGULATIONS
THEREUNDER, AND ITS
OWN RULES, AND
ENFORCE COMPLIANCE
THEREWITH,
NOTWITHSTANDING ANY
PROVISION OF THE
CORPORATION CODE TO
THE CONTRARY, BY ITS
MEMBERS, PERSONS
ASSOCIATED WITH ITS
MEMBERS OR ITS
PARTICIPANTS
SRC Rule 40.3 FAILURE OF SRO, 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
REGISTERED EXCHANGE Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
SUBMIT PROPOSED RULE
OR AMENDMENT THERETO
OR TO OBSERVE
PROCEDURE ON RULE
MAKING
SRC Rule 40.4 FAILURE OF SRO, 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
REGISTERED EXCHANGE Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
COMPLY WITH THE
100
COMMISSION’S ORDER TO
EFFECT CHANGES IN ITS
RULE/PRACTICE
SRC Rule 40.7 FAILURE OF SRO TO 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
NOTIFY THE COMMISSION Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
OF ANY DISCIPLINARY
SANCTION OF ANY
MEMBER
SRC Rule 52.1-3 VIOLATION OF RULE ON 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
KEEPING OF EXCHANGE Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
RECORDS
OF EXTERNAL AUDITOR GROUP B ACREDITATION

CORPORATION
101
(12) CLEARING AGENCIES

SRC Rule Section 41 PROHIBITION ON THE USE 100,000 200,000 300,000
OF UNREGISTERED
CLEARING AGENCY
SRC Rule 42.1(a) FAILURE TO REGISTER AS 100,000 200,000 300,000

CLEARING AGENCY

SRC Rule 42.1(e) LATE OR NON-FILING OF 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
ANNUAL AUDITED Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
AUDITED FINANCIAL FINANCIAL STATEMENTS
STATEMENTS
SEC Form 42-FS
Sections 54 and 68 of SRC; MATERIAL DEFICIENCY 10,000 per AFS or 1,000 per 20,000 per AFS or 2,000 per 30,000 per AFS or 3,000
SRC Rule 68 material deficiency, material deficiency, per material deficiency,
AUDITED FINANCIAL whichever is higher1 whichever is higher1 whichever is higher1
STATEMENTS
MATERIAL MISSTATEMENT 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of
OR MISREPRESENTATION amount of misstatement, amount of misstatement, the amount of
whichever is higher1 whichever is higher1 misstatement, whichever
is higher1
102
OF SRC RULE 68
STATEMENTS
STATEMENTS
SRC Rule 42.1(d) FAILURE TO FILE 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
AMENDMENT FORM FOR Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
SEC Form 42-CA CLEARING AGENCIES
Up to P100,000: 500
100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000:
3,500
Above 10,000,000: 5,000
103
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000
Revised Code on Corporate LATE-FILING 10,000 plus n/a n/a

Governance 100 daily
MANUAL ON CORPORATE
NON-FILING 25,000 n/a n/a
GOVERNANCE plus 100 daily penalty

SECRETARY ON THE NON-FILING 25,000 30,000 Suspension of CA
plus 100 daily penalty plus 100 daily penalty
TO MEETING

104
COMPLIANCE OFFICERS ON NON-FILING 25,000 30,000 Suspension of CA
THE EXTENT OF COMPLIANCE plus 100 daily penalty plus 100 daily penalty
WITH MANUAL ON

OTHER REQUIREMENTS, REQUIREMENTS
GOVERNANCE

SUJBECT REQUIREMENT (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)
SRC Rule 42.1(b) FAILURE OF A CLEARING 50,000basic penalty 75,000 basic penalty 100,000 basic penalty
AGENCY TO PAY THE Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
PRESCRIBED ANNUAL FEE
SRC Rule 42.2 FAILURE TO REPORT DAILY 20,000 basic penalty 30,000 basic penalty 50,000 basic penalty
BREACHES OF RULES OR Plus 500/day of delay Plus 1,000/day of delay Plus 1,500/day of delay
DIFFICULTIES BY
PARTICIPANT
ACCREDITATION SERVICES OF AN EXTERNAL
OF EXTERNAL AUDITOR AUDITOR WITH A GROUP
B ACCREDITATION
105
SUJBECT REQUIREMENT (Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos)

CORPORATION
(13) ALTERNATIVE TRADING SYSTEMS


Section 37 of the SRC; Section II of VIOLATION OF 100,000 150,000 200,000
the ATS Rules REGISTRATION
REQUIREMENT OF ATS

Sections 54 and 68 of SRC; LATE-FILING 0.001% of the maximum 0.002% of the maximum 0.004% of the maximum
SRC Rule 68 aggregate amount of the total aggregate amount of the total aggregate amount of the
AUDITED FINANCIAL STATEMENTS and issued and outstanding issued and outstanding shares total issued and
shares or 50,000, whichever is or 100,000, whichever is higher outstanding shares or
higher plus 200,000, whichever is
Plus 200 per day of delay 500 per day of delay higher
106
plus
1,000 per day of delay
NON-FILING 0.005% of the maximum 0.01% of the maximum 0.02% of the maximum
aggregate amount of the total aggregate amount of the total aggregate amount of the
issued and outstanding shares issued and outstanding shares total issued and
or 200,000, whichever is or 300,000, whichever is higher outstanding shares or
higher Plus 1,000 per day of delay 400,000, whichever is
Plus 500 per day of delay higher
Plus 1,000 per day of
delay
AUDITED FINANCIAL STATEMENTS whichever is higher1 whichever is higher1 whichever is higher1
MATERIAL 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 30,000 or 1/30 of 1% of

MISSTATEMENT OR amount of misstatement, amount of misstatement, the amount of
MISREPRESENTATION whichever is higher1 whichever is higher1 misstatement, whichever
is higher1
OTHER NON- 10,000 20,000 30,000

COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68
STATEMENTS
STATEMENTS
107
Section G(1), Rules and Regulations LATE FILING OR NON- 10,000 basic fine 10,000 basic fine 10,000 basic fine
on ATS FILING OF THE REPORTS plus 500/day of delay plus 500/day of delay plus 500/day of delay
ATS Form 2
ATS Form 2-A ATS Form 3
ATS Form 4
ATS Form 5
ATS Form 6

Section G(2), Rules and Regulations Late Amendment or Non- 10,000 basic fine 10,000 basic fine 10,000 basic fine
on ATS Amendment of plus 1,000/day of delay plus 1,000/day of delay plus 1,000/day of delay
Registration Statement
Section G(3), Rules and Regulations Late or Non-Approval of 10,000 basic fine 10,000 basic fine 10,000 basic fine
on ATS Investors’ plus 1,000/day of delay plus 1,000/day of delay plus 1,000/day of delay
Training Program
Section G(4), Rules and Regulations Violation of any provision 50,000 per violation 100,000 per violation 200,000 per violation and
on ATS of the Rules and cancellation of
Regulations on ATS registration
ACCREDITATION SERVICES OF AN
OF EXTERNAL AUDITOR EXTERNAL AUDITOR
WITHOUT A GROUP B
108
ACREDITATION

CORPORATION
(14) TRANSFER AGENTS


LEGAL BASIS/SUBJECT REPORT VIOLATION FIRST OFFENSE SECOND OFFENSE THIRD OFFENSE
SRC Rule 36-4.1 FAILURE TO REGISTER AS 50,000 75,000 100,000
(SEC Form 36-TA) TRANSFER AGENT

SRC Rule 36.4.2(a) LATEOR NON-FILING 10,000 30,000 50,000
FILING OF ANNUAL Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
ANNUAL REPORT REPORT
SEC Form 36-AR
SRC Rule 36.4.2(a) LATE OR NON-FILING OF 10,000 30,000 50,000
ANNUAL AUDITED Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
AUDITED FINANCIAL STATEMENTS FINANCIAL STATEMENTS
109
AUDITED FINANCIAL STATEMENTS whichever is higher whichever is higher whichever is higher
MATERIAL 10,000 or 1/10 of 1% of the 20,000 or 1/20 of 1% of the 40,000 or 1/30 of 1% of

MISSTATEMENT OR amount of misstatement, amount of misstatement, the amount of
MISREPRESENTATION whichever is higher1 whichever is higher1 misstatement, whichever
is higher1
OTHER NON- 10,000 20,000 30,000

COMPLIANCE WITH THE
REQUIREMENTS OF SRC
RULE 68

MATERIAL DEFICIENCY 1,000 2,000 4,000

OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS
Up to P100,000: 500
110
100,001 to 500,000: 1,500
500,001 to 5,000,000: 2,500
5,000,001 to 10,000,000:
3,500
Above 10,000,000: 5,000
GENERAL INFORMATION SHEET “Total Assets” reported in the 10% of the total fine 15% of the total fine
Up to P100,000: 1,000
100,001 to 500,000: 3,000
500,001 to 5,000,000:5,000
5,000,001 to 10,000,000:
7,000
Above 10,000,000: 10,000

ANTI-MONEY LAUNDERING NON-FILING 25,000 plus 100 daily penalty

MANUAL n/a n/a
MANUAL ON CORPORATE NON-FILING 25,000 30,000 Suspension of CA

GOVERNANCE plus 100 daily penalty plus 100 daily penalty

111
CERTIFICATION BY THE SECRETARY NON-FILING 25,000 30,000 Suspension of CA
ON THE ATTENDANCE OF plus 100 daily penalty plus 100 daily penalty
DIRECTORS TO MEETING


COMPLIANCE OFFICERS ON THE plus 100 daily penalty plus 100 daily penalty
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE

REQUIREMENTS
OTHER REQUIREMENTS,
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
SRC Rule 36.4.1(d) FAILURE TO REPORT 10,000 30,000 50,000 Plus 300/day of
AMENDMENTS TO SEC Plus 100/day of delay Plus 200/day of delay delay
FORM 36-TA
SRC Rule 36.4.2(b) FAILURE TO TIMELY 10,000 basic penalty 30,000 basic penalty 50,000 basic penalty
SUBMIT REPORT Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
EXCEPTION REPORTS
(SEC FORM 36-ER)
WITHIN SEVEN (7)
DAYS OF THE OCCURRENCE OF ANY
OF THE FOLLOWING EVENTS
STATED UNDER SRC RULE 36.4
PARAGRAPH 2 (B)
112
SRC Rule 36-4.2(e) FAILURE TO SUBMIT 10,000 30,000 50,000
OTHER REPORTS Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay

SRC Rule 36-4.2(c) FAILURE TO COMPLY 10,000 30,000 50,000
WITH PERIODIC Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
REPORTING TO ISSUER
REQUIREMENT
SRC Rule 36-4.2(d) FAILURE TO MAINTAIN A 10,000 30,000 50,000

COMPLAINT LOG Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
SRC Rule 36–4.3 FAILURE TO MAINTAIN 10,000 30,000 50,000

REQUIRED RECORDS Plus 100/day of delay Plus 200/day of delay Plus 300/day of delay
SERVICES OF AN
ACCREDITATION EXTERNAL AUDITOR
OF EXTERNAL AUDITOR WITHOUT A GROUP B
ACREDITATION

CORPORATION
113
(15) OTHER PROHIBITED PRACTICES AND SCHEMES UNDER THE SECURITIES REGULATION CODE
Sec. 24, SRC Manipulative Practices Individual/Corporation/ Individual/Corporation/Broker Individual/Corporation/Br
Broker Dealer of Securities: Dealer of Securities: 150,000.00 oker Dealer of Securities:
100,000.00 + 100% of the + 100% of the profits gained or 200,000.00 + 100% of the
profits gained or losses losses avoided profits gained or losses
avoided avoided
Associated Person or Associated Person or Salesman: Associated Person or
Salesman: 75,000.00 100,000.00 Salesman: 150,000.00
Sec. 26, SRC Fraudulent Transactions Individual/Corporation/Broker Individual/Corporation/Broker Individual/Corporation/Br

Dealer of Securities: Dealer of Securities: 150,000.00 oker Dealer of Securities:
avoided avoided

Sec. 27, SRC Insider’s Trading Individual/Corporation/Broker Individual/Corporation/Broker Individual/Corporation/Br

Dealer of Securities: Dealer of Securities: 150,000.00 oker Dealer of Securities:
avoided avoided

114
Sec. 54 & 68, SRC Failure of any public Denial of the request for (1) 50,000 fine;
companies and secondary approval of the consideration (2) The appraisal report shall not
licensees of the be accepted as a supporting
Commission including document to the application
those significant or financial statements
subsidiaries, that propose (3) The violation shall be
to receive property in referred to EIPD for
exchange for shares of appropriate investigation.
stock, to submit an
appraisal report issued by
an SEC-accredited appraisal
company
Failure of public 1/100 of 1% of the fair value 1/100 of 1% of the fair value of 1/100 of 1% of the fair
companies and secondary of the property recorded in the property recorded in the value of the property
licensees and their the financial statements financial statements without the recorded in the financial
significant subsidiaries, without the required required valuation of an statements without the
that have adopted the fair valuation of an accredited accredited appraisal company required valuation of an
value model in measuring appraisal company accredited appraisal
their properties pursuant company
to Philippine Financial
Reporting Standards, to
engage the services of an
SEC-accredited appraisal
company
115
C. INDEPENDENT PROFESSIONALS, FIRMS AND EXPERTS
(16) EXTERNAL AUDITORS AND AUDIT FIRMS

In-Charge: OFFICE OF THE GENERAL ACCOUNTANT
16.1. ACCREDITATION REQUIREMENT

Section 68 of SRC; Acceptance by an external Group A: 50,000 (1) Group A: 100,000 -
SRC Rule 68 auditor or firm of an audit Group B: 25,000 Group B: 50,000
of financial statements of Group C: 10,000 Group C: 20,000
a covered corporation
without prior (2) Referral to EPD for
accreditation as an appropriate
external auditor and/or investigation;
audit firm with the
appropriate category of and
accreditation (Group A, B,
or C) (3) Referral to the Board of
Accountancy for
appropriate proceedings
on the revocation of
accreditation or other
action.
116
SRC Rule 68, as amended FAILURE TO TIMELY Group A: 50,000 Group A: 100,000 and Group A: 200,000 and
SUBMIT THE REPORT Group B: 25,000 suspension of accreditation removal of accreditation
REPORT ON DISAGREEMENTS WITH Group C: 10,000
CLIENTS; FINDINGS OF MATERIAL Group B: 50,000 Group B: 100,000
FRAUD, ERROR, SIGNIFICANT and suspension of and removal of accreditation
LOSSES OR WEAKNESS IN accreditation
INTERNAL CONTROLS Group C: 40,000
Group C: 20,000 and removal of accreditation
and suspension of
accreditation
SRC Rule 68, as amended FAILURE TO TIMELY FILE Group A: 25,000 Group A: 50,000 Group A: 100,000 and
THE REPORT Group B: 10,000 Group B: 20,000 suspension of accreditation
REPORT ON MATERIAL CHANGES IN Group C: 5,000 Group C: 10,000
THE FIRM’S OR THE ACCOUNTING Group B: 40,000 and
OFFICE’ STRUCTURE, suspension of accreditation
COMPOSITION, QUALITY
CONTROLS Group C: 20,000 and
suspension of accreditation
16.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS

SRC Rule 68, as amended Failure to comply with 50% of the amount imposable Group A: 100,000 and Group A: 200,000 and
prescribed auditing on the corporate client whose suspension of accreditation removal of accreditation
COMPLIANCE WITH AUDITING standards, as maybe audited financial statements
STANDARDS, CODE OF ETHICS AND shown by the findings on are materially deficient or Group B: 50,000 Group B: 100,000
OTHER REQUIREMENTS UNDER the financial statements misstated and suspension of and removal of accreditation
117
THE SEC RULES audited by the accreditation
accredited external If impact of non-compliance is Group C: 40,000
auditor or such other not quantifiable: Group C: 20,000 and removal of accreditation
findings as maybe Group A: 50,000 and suspension of
established Group B: 25,000 accreditation
Group C: 10,000
Failure to comply with Group A: 50,000 Group A: 100,000 and Group A: 200,000 and
the Code of Ethics for Group B: 25,000 suspension of accreditation removal of accreditation
Professional Accountants Group C: 10,000
including independence Group B: 50,000 Group B: 100,000
requirements and suspension of and removal of accreditation
accreditation
Group C: 40,000
Group C: 20,000 and removal of accreditation
and suspension of
accreditation
Failure to allow the Group A: 50,000 Group A: 50,000 Group A: 50,000

conduct of Quality Group B: 25,000 Group B: 25,000 Group B: 25,000
Assurance Review (QAR) Group C: 10,000 Group C: 10,000 Group C: 10,000
or to provide requested Plus PhP 100 daily fine until Plus PhP 100 daily fine until Plus PhP 100 daily fine until
records and documents compliance compliance compliance
during the QAR
Failure to timely pay the Daily fine of PhP 100 Daily fine of PhP 500 Daily fine of PhP 1,000
prescribed annual fee
Failure to adopt and Group A: 50,000 Group A: 100,000 and Group A: 200,000 and
implement quality Group B: 25,000 suspension of accreditation removal of accreditation
control standards in the Group C: 10,000
conduct of audit Group B: 50,000 Group B: 100,000
and suspension of and removal of accreditation
accreditation
118
Group C: 20,000 Group C: 40,000
and suspension of and removal of accreditation
accreditation
Failure to comply with Group A: 50,000 Group A: 50,000 Group A: 100,000 and
other requirements of Group B: 25,000 Group B: 20,000 suspension of accreditation
SRC Rule 68, as amended Group C: 10,000 Group C: 10,000
and other Guidelines Group B: 50,000
issued by the and suspension of
Commission accreditation
Group C: 20,000
and suspension of
accreditation
17. CREDIT RATING AGENCIES


Sections 12.1 and 54 of SRC; SRC THE CREDIT RATING The credit rating report shall (1) 50,000 fine shall be -
Rule 12.1; AGENCY WHICH ISSUED not be accepted as a imposed on the
THE RATING IS NOT supporting document to the registrant and rating
REGISTRANTS OF DEBT SECURITIES ACCREDITED WITH THE registration statement agency;
MUST BE RATED BY AN COMMISSION (2) The credit rating report
ACCREDITED CREDIT RATING shall not be accepted as
AGENCY a supporting document
to the registration
statement;
119
(3) The violation shall be
referred to EIPD for
appropriate
investigation.

SRC Rule 12 FAILURE TO SUBMIT THE 25,000 50,000 100,000
PRESCRIBED REPORTS and suspension of
UNDER THE RULE accreditation

LEGAL BASIS VIOLATION FIRST OFFENSE SECOND OFFENSE THIRD OFFENSE SUBSEQUENT
(Amounts in Pesos) (Amounts in Pesos) (Amounts in Pesos) OFFENSES
(Amounts in
Pesos)
SRC Rule 12 FAILURE TO TIMELY 10,000 plus P100 per 20,000 plus 100 per 40,000 plus P100 per 40,000 plus 100
SETTLE THE PRESCRIBED day of delay day of delay day of delay per day of delay
ANNUAL FEE ANNUAL FEE and suspension
of accreditation
FAILURE TO COMPLY 50,000 100,000 and 200,000 and removal -
WITH THE PRESCRIBED suspension of of accreditation
INDEPENDENCE, accreditation
STRUCTURE AND
PROCEDURAL
REQUIREMENTS UNDER
THE RULE
120
18. APPRAISAL COMPANIES

Section 62 of the Corporation Acceptance by an The appraisal report (1) 50,000 fine; -
Code; Section 68 of the SRC; appraisal company of an shall not be accepted as (2) The appraisal report shall not
SEC MC 4, s2010 or the amended appraisal engagement a supporting document be accepted as a supporting
MC with a covered to the application or document to the application or
corporation without prior financial statements financial statements
accreditation with the (3) The violation shall be referred
Commission to EIPD for appropriate
investigation.
Failure of any issuers of 1/100 of 1% of the 1/100 of 1% of the 1/100 of 1% of the
securities to the public or amount of amount of consideration amount of consideration
public companies that consideration
propose to transfer or has
transferred property to
another entity in
exchange for cash or
property, to submit an
appraisal report issued
by SEC accredited
appraisal company
Failure of any public 1/100 of 1% of the 1/100 of 1% of the 1/100 of 1% of the

companies and secondary property dividend property dividend property dividend
licensees of the
Commission that declare
property dividend
without any support or
appraisal report of an
accredited appraiser
121
Section 62 of Corporation Code; FAILURE TO TIMELY 10,000 plus 100 20,000 plus P 100 50,000 and suspension of
Section 68 of the SRC; SUBMIT ANNUAL daily fine daily fine accreditation
SEC MC 4, s2010 or the amended REPORT
MC
MATERIALLY 10,000 20,000 50,000 and suspension of
INCOMPLETE ANNUAL accreditation
REPORT
FAILURE TO TIMELY 10,000 20,000 50,000 and suspension of

SUBMIT COPIES OF accreditation
RENEWED LICENSE/S OF
THE APPRAISAL
COMPANY’S PROPERTY
VALUER/S
MATERIAL 10,000 20,000 P50,000 and suspension of

MISREPRESENTATION IN accreditation
THE ANNUAL REPORT
MATERIAL 50,000 100,000 and suspension of 200,000 and removal of

MISREPRESENTATION IN accreditation accreditation
ANY APPRAISAL REPORT
ISSUED BY THE
COMPANY
122
Section 62 of Corporation Code; FAILURE TO TIMELY PAY 10,000 plus P100 per 20,000 plus P100 per day of delay 40,000 plus P100 per day
Section 68 of the SRC; THE PRESCRIBED day of delay of delay
SEC MC 4, s2010 or the amended ANNUAL FEE
MC
FAILURE TO COMPLY 50,000 100,000 and suspension of 200,000 and removal of
WITH THE PRESCRIBED accreditation accreditation
OPERATIONAL AND
QUALIFICATION
REQUIREMENTS FOR
ACCREDITED APPRAISAL
COMPANIES
19. OTHER VIOLATIONS

SEC MC No. 20. s.1999 CORPORATION WHOSE Revocation n/a n/a
INCORPORATOR/S
IS/ARE MINOR/S
SEC MC No. 20. s.1999 INCORPORATOR/S WITH Revocation n/a n/a

FAKE TIN’S (TAXPAYER
IDENTIFICATION CARD/S)
SEC MC No. 20. s.1999 INCORPORATOR/S WHO Revocation n/a n/a

IS/ARE DECEASED AT
THE TIME OF
INCORPORATION
SEC MC No. 20. s.1999 OFFICER/S WHO ARE Revocation

DECEASED
123
Sec. 21 of Corporation Code CORPORATION BY P 10,000 P 20,000 Revocation
ESTOPPEL
Sec. 45 of Corporation Code ULTRA-VIRES ACTS P 10,000 P 20,000 Revocation
UNAUTHORIZED USE OF P 10,000 P 20,000 Revocation

PREVIOUSLY REGISTERED
CORPORATE NAME
SUBMISSION OF Revocation n/a n/a

SPURIOUS OR FALSIFIED
DOCUMENTS
as of 13 November 2013
124

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CONSOLIDATED SCALE OF FINES

A. REGISTERED CORPORATIONS WITH NO SECONDARY LICENSE

(1) STOCK CORPORATIONS

Section 16 of CCP Changes in the 5,000 5,000 5,000

Section 16 of CCP Changes in the Principal

Section 16 of CCP Increase in number of

Section 16 of CCP Changes in corporate

Section 16 in relation to Section 38 Increase and Decrease

Section 25 of CCP Election of President as 5,000 5,000 5,000

Section 25 of CCP Election of a President

Section 25 of CCP Election of a Secretary

Section 43 of CCP Stock Corporations are

Section 46 of CCP Non-Registration 10,000

Section 48 of CCP Changes in Fiscal Year

Section 48 of CCP Changes in the Annual

Section 50 of CCP Non-holding of Meeting

Foreign Investment Act (FIA) and Increase in the Foreign

SEC Memorandum Circular No. 6, Domestic Stock

Section 74 of CCP LATE FILING OF STOCK

Section 16 of CCP CHANGES IN THE

Section 16 of CCP INCREASE IN NUMBER

Section 16 of CCP CHANGES IN CORPORATE

Section 25 of CCP ELECTION OF PRESIDENT

Section 48 of CCP CHANGES IN THE

3.1 STOCK BRANCH OFFICE

3.1.a. REPORTORIAL REQUIREMENTS

GENERAL INFORMATION SHEETS Up to 100,000 : 2,500

Memorandum Circular No. 15, LATE FILING 1,250 2,500 5,000

Section 126 of CCP LATE INITIAL DEPOSIT Basic fine: 10,000.00

Section 126 of CCP LATE SUBSTITUTION OF

Section 130 of CCP NON-FILING OR LATE

Section 131 of CCP CHANGES IN THE

Section 132 of CCP NON-FILING OR LATE

3.2.a. REPORTORIAL REQUIREMENTS

GENERAL INFORMATION SHEETS Up to 100,000: 750

GENERAL INFORMATION SHEETS Up to 100,000: 1,500

Section 130 of CCP NON-FILING OR LATE

Section 131 of CCP CHANGES IN THE

3.3.a. REPORTORIAL REQUIREMENTS

GENERAL INFORMATION SHEETS Up to 100,000: 2,500

Memorandum Circular No. 15, LATE FILING 1,250 2,500 5,000

Section 131 of CCP Changes in the corporate

3.4. REGIONAL AREA HEADQUARTERS

3.4.a. REPORTORIAL REQUIREMENTS

3.4.b OTHER REQUIREMENTS

Memorandum Circular No. 15 Series LATE FILING 1,250 2,500 5,000

Section 131 of CCP Changes in the corporate

4.1. REPORTORIAL REQUIREMENTS

4.2. OTHER REQUIREMENTS

Section 16 of CCP Changes in the Principal

Section 16 of CCP Increase in number of

Section 16 of CCP Changes in corporate

Section 25 of CCP Election of a President

Section 25 of CCP Election of a Secretary

Section 46 of CCP NON-REGISTRATION OF 5,000 n/a n/a

Section 46 of CCP LATE REGISTRATION OF

Section 48 of CCP CHANGES IN FISCAL

Section 48 of CCP CHANGES IN THE 2,500 2,500 2,500

MEMBERSHIP BOOK LATE FILING OF

B. REGISTERED CORPORATIONS WITH SECONDARY LICENSE

(5) LENDING COMPANIES

5.1. LICENSING REQUIREMENT

5.2. REPORTORIAL REQUIREMENTS