What You Need to Know About SEC Memorandum Circular (MC) 28 Series of 2020
You probably heard that the Securities and Exchange Commission (SEC) has released their memorandum about the mandatory Email Address and Cellphone Number for SEC Transactions (Memorandum Circular (MC) 28 Series of 2020). Still looking for more details? We got you!
The said circular mandates every company (corporation, partnership, association and person) under the jurisdiction of the Commission to submit a valid official email and a valid official cellular phone number together with alternative email addresses and cell phone numbers to the commission.
Existing companies are required to comply on or before February 23, 2021 based on the Circular document that the SEC released. Failure to comply with the rules of the mentioned circular will be liable with administrative penalty amounting to Ten Thousand Pesos (P10,000.00).
Email and phone numbers will be part of the General Information Sheet (GIS) and Notice Update Form (NUF) which should be regularly filed with the Commission. If a corporation fails to include the email addresses and phone numbers in the GIS or NUF file with the SEC, such GIS or NUF will be considered deficient.
Why does the SEC require email addresses and cell phone numbers?
The email addresses should be used on any transactions, applications, letters, requests, papers, and pleadings under the jurisdiction of, or for consideration by, the SEC may be processed, submitted and/or filed online. In addition, notices, letter replies, orders decisions, and/other documents will be sent to the submitted email addresses. The SEC consider that the emails were received by Company on the date the email was sent by the Commission.
The cell phone numbers will have an additional layer of security to ensure that whoever accesses the email sent by the SEC was an authorized representative of the Company. The cellphone number will be receive a One Time Personal identification number (OTP) or Two-Step Verification, which need to be put in before the email sent by the SEC can be accessed or retrieved.
What makes email addresses and cell phone numbers valid?
- In order for the email addresses to be valid, it must have at least one gigabyte (GB) of unused memory space at any given moment. The email might be the official or alternate email of another Company; provided that the official email of the Company is not the same with the alternate email address of the same entity.
- For the cellphone number to be valid, it shall pertain to existing mobile phone number from any telecommunications company legally operating in the Philippines. The cellphone number may be the official or alternate cell phone number of another Company; provided that the official cell phone number of the Company is not the same with the alternate cell phone number of the same entity.
The email addresses and cell phone numbers should be under the control of the corporate secretary, the person charged with the administrator and management of the corporation sole, the resident agent of the foreign corporation, the managing partner or the individual or his/her duly authorized representative.
What information and documentation that SEC requires?
- Complete name of the corporation, association, partnership, or person;
- The SEC registration number or identification number;
- Official electronic mail address;
- Official cellular phone number;
- Alternate electronic mail address;
- Alternate cellular phone number;
- For corporations, the complete name and signature of the corporate secretary, the person charged with the administration and management of the corporation sole, or the duly authorized representative;
- For partnerships, the complete name and signature of the managing-partner or the duly authorized representative; and
- For natural persons, his/her signature or his/her duly authorized representative’s signature.
If ever the company wants to change its email address or cellular phone number, a notice to change email address and or cellular phone number must be filed to the SEC along with authorization or Certificate of Authorization within 5 days from the date the company decided to change the email address or cell phone number.
Fundamentally, this tells us that the SEC is making more moves to advance its online presence while making sure that the security, confidentiality and credibility of the information they are receiving and sending through the internet is not compromised at any chance.
It is safe to say that, more and more government agencies are now moving their operations from manual to online platforms. These online methods can be a good way to expedite the government agencies processes.
Talk To DJKA Business Services Inc.
With these in-mind, it’s important that you comply with these requirements to keep your company upfloat and thriving moving forward. Talk to us today, for a free consultation.
Sources: https://www.sec.gov.ph/wp-content/uploads/2020/10/2020MCNo28.pdf or https://www.sec.gov.ph/wp-content/uploads/2020/06/2020Notice_Official-e-mail-requirement.pdf
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