SEC affirms ‘deemed approved’ status of applications if processing timelines missed

THE Securities and Exchange Commission (SEC) said it affirmed the “deemed approved” status of applications if the commission misses the processing timelines set for such transactions.

In Memorandum Circular (MC) No. 7, issued on July 10, the SEC said in the absence of written notice of delay or deficiency, pending applications or requests for a license, permit, certification, accreditation, or authorization will be considered approved if the commission fails to act within the prescribed period.

“This is provided that all required documents were submitted based on the appropriate provided checklist for the transaction,” according to the MC.

The SEC’s citizen’s charter sets a timeline of three working days for simple transactions or routine applications involving minimal discretion. Complex transactions or those that need evaluation or coordination have a processing deadline of seven working days.

Transactions deemed “highly technical” or those that involve financial or legal review or multiple clearances should be processed within 20 working days.

Applications governed by a special law should be processed within the timeline specified in the law.

The citizen’s charter conforms to the timelines set in the Ease of Doing Business Act or Republic Act No. 11032.

“The processing time shall be reckoned from the submission of complete documentary requirements,” according to the MC.

“All departments and offices of the commission shall ensure that processes and requirements are necessary, consistent, and simplified,” the SEC said.

“Piecemeal document requests and comments shall not be tolerated, and every action shall be in line with the commitment to both compliance and convenience for stakeholders,” it added.

Earlier this month, President Ferdinand R. Marcos, Jr. directed the SEC to streamline its procedures, remove bureaucratic bottlenecks, and reduce transaction costs within its control to support the implementation of the Capital Markets Efficiency Promotion Act.

One of the law’s provisions is the reduction of the stock transaction tax to 0.1% from the previous 0.6% to boost stock market activity. — Revin Mikhael D. Ochave