The SEC has introduced the Enhanced Compliance Incentive Plan (ECIP) as outlined in Memorandum Circular No. 13, Series of 2024. Following the success of the 2023 Amnesty Program, this plan aims to further encourage regulatory compliance and maintain a reliable database of active and inactive corporations. This is also designed to help entities comply with reportorial requirements and resolve any outstanding issues at reduced penalties. Below are the key points of the ECIP:

  1. Who is Eligible?
    a. Corporations that have failed to submit or have late filing of the General Information Sheet (GIS) and Audited Financial Statements (AFS) for recent and prior years, including those with MC 28 violation.
    b. Corporations under delinquent, suspended, or revoked status due to non-compliance.
  2. ECIP Rates:
    a. Non-compliant corporations including delinquent corporations can settle their obligations for a fixed fee of Php 20,000.
    b. Suspended or revoked corporations can pay 50% of the assessed fines to lift suspensions or revocations, along with a petition fee of Php 3,060.
  3. Application Period:
    a. Applications for the ECIP will be accepted from September 2 to November 30, 2024.
  4. How to Apply:
    a. Complete the Expression of Interest Form (EOI) and submit the necessary documents through the SEC’s Electronic Filing and Submission Tool (eFAST).
    b. Make the required payment using the SEC’s Electronic System for Payment (eSPAYSEC) with the generated Payment Assessment Form (PAF) from eFAST system.

The Confirmation of Payment for ECIP will be issued for Corporations that have met all the conditions, including payment of the applicable fines and penalties. Please note that if an applicant corporation fails to submit the complete set of requirements, the ECIP fees will be forfeited.

We highly recommend you to take advantage of this opportunity to ensure your corporation’s compliance and avoid further penalties.