SEC Consolidated Scale of Fines 05 Nov 2013 (26 Nov 2013)

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/
SUBJECT REPORT
Section 141 of the Corporation
Code of the Philippines (CCP)
VIOLATION
LATE FILING
GENERAL INFORMATION SHEETS

AND
ANNUAL FINANCIAL STATEMENTS
Section 141 of the CCP

AND
FIRST OFFENSE
(Amounts in Pesos)
The basis of the penalty is the
Total Assets reported in the
latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
10% of the total fines
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
15% of the total fine
computed
Total fine plus

computed
Total fine plus

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
NON-FILING

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
LEGAL BASIS/
SUBJECT REPORT
Section 68 of the Securities
Regulation Code (SRC); SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
The basis of penalty is the
"Total Assets" reported in the
Latest Financial Statements
SECOND OFFENSE
(Amounts in Pesos)
Up to 100,000: 500
100,001 to 500,000: 1,000
500,001 to 5,000,000: 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
Up to 100,000: 1,000
100,001 to 500,000: 2,000
500,001 to 5,000,000: 4,000
5,000,001 to 10,000,000: 6,000
Above 10,000,000: 8,000
An amount based on the

above scale or 1/10 of 1% of
the amount of misstatement,
whichever is higher

whichever is higher


Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
Section 68 of the SRC; SRC Rule 68

MATERIAL
MISSTATEMENT OR
MISREPRE-SENTATION
OTHER NONCOMPLIANCE WITH THE

REQUIREMENTS OF SRC
RULE 68
THIRD OFFENSE
(Amounts in Pesos)
"Total Assets" reported in
the Latest Financial
Statements
Up to 100,000: 2,000
100,001 to 500,000: 4,000
500,001 to 5,000,000:
8,000
5,000,001 to 10,000,000:
12,,000
Above 10,000,000: 16,000
above scale or 4/10 of 1%
of the amount of
misstatement, whichever is
higher
Statements
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
1.2. OTHER REQUIREMENTS (These are also applicable to corporations with secondary license and public companies)
LEGAL BASIS/
REQUIREMENT
Section 16 of CCP
CORPORATE NAME
Section 16 of CCP
PRINCIPAL OFFICE ADDRESS
Section 16 of CCP
BOARD OF DIRECTORS
Section 16 of CCP
PURPOSE
Section 16 in relation to Section 38

of CCP
INCREASE AND DECREASE IN
CAPITAL STOCK
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Changes in the
corporate name without
amendment of the
Articles of Incorporation
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
10,000
10,000
10,000
10,000
10,000
10,000
Changes in the Principal

Office Address without
amendment of the
Increase in number of
Board of Directors
without amendment of
the Articles of
Incorporation
Changes in corporate
purpose without
amendment of the
Increase and Decrease
of the Authorized
Capital Stock without
amendment of the
LEGAL BASIS/
REQUIREMENT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 25 of CCP
ELECTION OF PRESIDENT AS
SECRETARY AND/OR TREASURER
Election of President as
Secretary and/ or
Treasurer
5,000
5,000
5,000
Section 25 of CCP
Election of a President
who is not a member of
the Board or a
Stockholder
5,000
5,000
5,000
5,000
5,000
5,000
Retained Earnings less paid-up

capital x.001 or a minimum of
1,000.00
Retained Earnings less paid-up

capital x.001 or a minimum of
1,000.00
Retained Earnings less paidup capital x.001 or a

minimum of 1,000.00
n/a
n/a
1,000
n/a
n/a
5,000
5,000
5,000
ELECTION OF A PRESIDENT WHO

IS NOT A MEMBER OF THE BOARD
Section 25 of CCP
ELECTION OF A SECRETARY WHO
IS NOT A FILIPINO CITIZEN OR A
RESIDENT OF THE PHILIPPINES
Election of a Secretary
who is not a Filipino
Section 43 of CCP
EXCESS IN RETAINED EARNINGS
Stock Corporations are

prohibited from
retaining surplus profits
in excess of one
hundred percent (100%)
of their paid in capital
Section 46 of CCP
BY-LAWS
Non-Registration
10,000
Late- Registration
Section 48 of CCP
FISCAL YEAR
Changes in Fiscal Year

the By-Laws
LEGAL BASIS/
REQUIREMENT
Section 48 of CCP
DATE OF ANNUAL MEETING
VIOLATION
Changes in the Annual

Date of Meeting
the By-Laws
Section 50 of CCP
NON-HOLDING OF MEETING
Non-holding of Meeting
Foreign Investment Act (FIA) and

Memorandum Circular No. 8 Series
of 1998
REGISTRATION
UNDER FIA
Increase in the Foreign

Equity Percentage
without prior
registration with the
Commission
SEC Memorandum Circular No. 6,

Series of 2006
Domestic Stock
Corporations with
annual gross sales or
gross revenue of at least
P5,000,000 shall submit
within thirty (30) days
from the last day of
submission of the
Annual Audited Financial
Statements.
GENERAL FORM FOR FINANCIAL

STATEMENTS (GFFS)
Section 74 of CCP
STOCK AND TRANSFER BOOK
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
5,000
5,000
5,000
5,000
5,000
5,000
1/5 of 1% of the paid in capital

but not less than 10,000
n/a
n/a
Reprimand
1,000 plus
100 per day of delay
1,000 plus
2,000
n/a
n/a
LATE FILING OF STOCK

AND TRANSFER BOOK
(2) NON-STOCK CORPORATIONS

2.1REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
LATE FILING

AND

AND
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
computed
Total fine plus

computed
Total fine plus

computed
Up to 100,000: 250
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
NON-FILING

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
LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC; SRC Rule 68, as
amended
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000

whichever is higher
An amount based on the above

scale or 2/10 of 1% of the
amount of misstatement,
whichever is higher

of the amount of
higher



Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
Section 68 of SRC; SRC Rule 68

MATERIAL
MISSTATEMENT/
MISREPRESEN-TATION

REQUIREMENTS OF SRC
RULE 68
THIRD OFFENSE
(Amounts in Pesos)
Statements
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
2.2 OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
Section 16 of CCP
CORPORATE NAME
VIOLATION
CHANGES IN THE
CORPORATE NAME
WITHOUT AMENDMENT
OF THE ARTICLES OF
INCORPORATION
Section 16 of CCP
CHANGES IN THE
PRINCIPAL OFFICE
ADDRESS WITHOUT
AMENDMENT OF THE
ARTICLES OF
INCORPORATION
Section 16 of CCP
BOARD OF TRUSTEES
INCREASE IN NUMBER
OF BOARD OF TRUSTEES
WITHOUT AMENDMENT
OF THE ARTICLES OF
INCORPORATION
Section 16 of CCP
PURPOSE
CHANGES IN CORPORATE
PURPOSE WITHOUT
AMENDMENT OF THE
ARTICLES OF
INCORPORATION
Section 25 of CCP
SECRETARY AND/ OR TREASURER
ELECTION OF PRESIDENT
AS SECRETARY AND/ OR
TREASURER
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
5,000
5,000
2,500
2,500
2,500
LEGAL BASIS/
REQUIREMENT
Section 25 of CCP
IS NOT A MEMBER OF THE
BOARD
VIOLATION
ELECTION OF A
PRESIDENT WHO IS NOT
A MEMBER OF THE
BOARD OF TRUSTEES
Section 25 of CCP
Section 46 of CCP
BY-LAWS
Section 46 of CCP
BY-LAWS
Section 48 of CCP
FISCAL YEAR
ELECTION OF A
SECRETARY WHO IS NOT
A FILIPINO
Section 48 of CCP
CHANGES IN THE
ANNUAL DATE OF
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
NON-HOLDING OF
MEETING
LATE REGISTRATION OF
MEMBERSHIP BOOK
Section 50 of CCP
Section 6(d) Guidelines on the
Imposition of Fines or Penalties
for Non-Compliance with the
Reportorial Requirements - 2002
(Section 74)
MEMBERSHIP BOOK
NON-REGISTRATION
LATE- REGISTRATION
CHANGES IN FISCAL
YEAR WITHOUT
AMENDMENT OF THE
BY-LAWS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
5,000
n/a
n/a
500
n/a
n/a
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
1,000
n/a
n/a
(3) FOREIGN CORPORATIONS

3.1 STOCK BRANCH OFFICE

3.1.a. REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Code of the Philippines and
Memorandum Circular No. 15
Series of 2006
VIOLATION
LATE FILING

AND
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
computed
Total fine plus

computed
Total fine plus

computed
Up to 100,000 : 1,250
100,001 to 500,000: 2,000
500,001 to 5,000,000 : 3,000
5,000,001 to 10,000,000: 4,000
Above 10,000,000: 5,000

AND
Section 141 of the CCP;

Memorandum Circular No. 15,
Series of 2006
FIRST OFFENSE
(Amounts in Pesos)
NON-FILING

Up to 100,000 : 2,500
100,001 to 500,000: 4,000
500,001 to 5,000,000 : 6,000
5,000,001 to 10,000,000: 8,000
Above 10,000,000:10,000
10
LEGAL BASIS/
SUBJECT REPORT
Sec. 68 of the SRC; SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY

MATERIAL
MISSTATEMENT/
MISREPRESENTATION

REQUIREMENTS OF SRC
RULE 68
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
The basis of the penalty is
the Total Assets
reported in the latest
Financial Statements
Up to 100,000: 500
100,001 to 500,000: 1,000
500,001 to 5,000,000: 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
Up to 100,000: 1,000
100,001 to 500,000: 2,000
500,001 to 5,000,000: 4,000
5,000,001 to 10,000,000: 6,000
Above 10,000,000: 8,000

whichever is higher

whichever is higher

of the amount of
misstatement, whichever
is higher



Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
Up to 100,000: 2,000
100,001 to 500,000: 4,000
500,001 to 5,000,000:
8,000
5,000,001 to 10,000,000:
6,000
Above 10,000,000: 8,000
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
11
3.1. b. OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
Series of 2006
AFFIDAVIT OF NON- OPERATION
Memorandum Circular No. 15
Series of 2006; Section 8
VIOLATION
LATE FILING
NON-FILING
LATE FILING OF PETITION
(to change, substitute or
add a Resident Agent)
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
1,250
2,500
5,000
2,500
Basic fine: 10,000.00
Additional: 1,000 per month of
delay
5,000
Additional:: 1,000 per month of
delay
10,000
Additional:: 1,000 per
month of delay
n/a
n/a

Surcharge: 500 per month of
delay

Surcharge: 1,000 per month of
delay

Surcharge: 1,500 per
month of delay
Basic fine: 10,000

delay
Basic fine: 10,000

delay

Surcharge: 1,500 per
month of delay
SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT
Section 126 of CCP
LATE INITIAL DEPOSIT
SECURITIES DEPOSIT
Section 126 of CCP
SECURITIES DEPOSIT
Section 126 of CCP

SECURITIES DEPOSIT
INADEQUATE OR LATE
ADDITIONAL SECURITIES
DEPOSIT
LATE SUBSTITUTION OF
MATURED SECURITIES
DEPOSITED (within 30
days from the date of
maturity)

delay
12
LEGAL BASIS/
REQUIREMENT
Section 130 of CCP
AMENDED ARTICLES OF
INCORPORATION AND BY-LAWS
OF FOREIGN CORPORATIONS
LICENSED TO DO BUSINESS IN THE
PHILIPPINES
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Basic fine: 10,000
Basic fine: 10,000
NON-FILING OR LATE
FILING
Submission is within sixty
(60) days after the
amendment becomes
effective.
Section 131 of CCP

PURPOSE
CHANGES IN THE
CORPORATE NAME,
PURPOSE AND ADDITION
OF PURPOSES WITHOUT
FILING A PETITION TO
AMEND LICENSE
Section 132 of CCP

Articles of Merger and
Consolidation of a foreign
corporation licensed to do
business in the Philippines who is
party to a merger or consolidation
in its home country or state and
filing of withdrawal of license if
the absorbed corporation is the
foreign corporation doing
business in the Philippines
NON-FILING OR LATE
FILING OF THE ARTICLES
OF MERGER OR
WITHDRAWAL OF
LICENSE
Basic fine: 10,000

(60) days after the
amendment becomes
effective.
13
3.2 NON-STOCK BRANCH OFFICE/ REPRESENTATIVE OFFICE

LEGAL BASIS/
SUBJECT REPORT
Series of 2006
VIOLATION
LATE FILING

AND

Series of 2006
AND
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
computed
Total fine plus

computed
Total fine plus

computed
Up to 100,000: 750
100,001 to 500,000: 1,500
500,001 to 10,000,0000: 2,500
10,000,001 to 100,000,000:
3,500
Above 100,000,000: 5,000
NON-FILING

Up to 100,000: 1,500
100,001 to 500,000: 3,000
500,001 to 10,000,0000: 5,000
10,000,001 to 100,000,000:
7,000
Above 100,000,000: 10,000
14
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
MATERIAL DEFICIENCY

MATERIAL
MISSTATEMENT/
MISREPRESENTATION

REQUIREMENTS OF SRC
RULE 68
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
the Total Assets
reported in the latest
Financial Statements
Up to 100,000: 500
100,001 to 500,000: 1,000
500,001 to 5,000,000: 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
Up to 100,000: 1,000
100,001 to 500,000: 2,000
500,001 to 5,000,000: 4,000
5,000,001 to 10,000,000: 6,000
Above 10,000,000: 8,000

whichever is higher

whichever is higher -

of the amount of
is higher



Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
Up to 100,000: 2,000
100,001 to 500,000: 4,000
500,001 to 5,000,000:
8,000
5,000,001 to 10,000,000:
12,000
Above 10,000,000: 16,000
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
15
3.2. b. OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
Series of 2006
AFFIDAVIT OF NON-OPERATION
Section 8 of CCP; Memorandum
Circular No. 15 Series of 2006
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
1,000
SECOND OFFENSE
(Amounts in Pesos)
1,000
THIRD OFFENSE
(Amounts in Pesos)
1,000
NON-FILING
2,000
2,000
2,000
Basic fine: 10,000

delay
Basic fine: 10,000

delay
Basic fine: 10,000

Surcharge: 1,000 per month
of delay
Basic fine: 5,000
Basic fine: 5,000
Basic fine: 5,000
Basic fine: 5,000
Basic fine: 5,000
Basic fine: 5,000
LATE FILING OF PETITION

(to change, substitute or
add a Resident Agent)
SUBSTITUTION OR ADDITIONAL
RESIDENT AGENT
Section 130 of CCP

AMENDED ARTICLES OF
INCORPORATION AND BY-LAWS OF
FOREIGN CORPORATIONS
LICENSED TO DO BUSINESS IN THE
PHILIPPINES
NON-FILING OR LATE
FILING
Section 131 of CCP

PURPOSE
CHANGES IN THE
CORPORATE NAME,
PURPOSE AND ADDITION
OF PURPOSES WITHOUT
FILING A PETITION TO
AMEND LICENSE

(60) days after the
amendment becomes
effective.
16
3.3 REGIONAL OPERATING HEADQUARTERS


LEGAL BASIS/
SUBJECT REPORT
Code of the Philippines;
Series of 2006
VIOLATION
LATE FILING

AND
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
computed
Total fine plus

computed
Total fine plus

computed
Up to 100,000: 1,250
100,001 to 500,000: 2,000
500,001 to 5,000,000: 3,000
5,000,001 to 10,000,000: 4,000
Above 10,000,000: 5,000

AND

Series of 2006
FIRST OFFENSE
(Amounts in Pesos)
NON-FILING

Up to 100,000: 2,500
100,001 to 500,000: 4,000
500,001 to 5,000,000: 6,000
5,000,001 to 10,000,000: 8,000
Above 10,000,000: 10,000
17
LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC;
SRC Rule 68

VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
Up to 100,000 : 500
100,001 to 500,000 : 1,000
500,001 to 5,000,000 : 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
Up to 100,000 : 1,000
100,001 to 500,000 : 2,000
500,001 to 5,000,000 : 4,000
5,000,001 to 10,000,000:
6,000
Above 10,000,000: 8,000
MATERIAL
MISSTATEMENT/
MISREPRESENTATION

whichever is higher

whichever is higher

the amount of
higher

REQUIREMENTS OF SRC
RULE 68



Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,0
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000:
2,000
Above 10,000,000: 4,000
MATERIAL DEFICIENCY
THIRD OFFENSE
(Amounts in Pesos)
the Total Assets reported
in the latest Financial
Statements
Up to 100,000 : 2,000
100,001 to 500,000 : 4,000
500,001 to 5,000,000 : 8,000
5,000,001 to 10,000,000:
12,000
Above 10,000,000: 16,000
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 : 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
18
3.3.b. OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
of 2006; Articles 58 & 59 of the
Omnibus Investments Code
VIOLATION
Initial Remittance of at
least US$200,000 or its
equivalent in other foreign
currencies converted to
Philippine currency
(within 30 days after the
issuance of the license)
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Basic fine of 10,000

delay
n/a
n/a

Series of 2006
AFFIDAVIT NON-OPERATION
LATE FILING
1,250
2,500
5,000
NON-FILING
2,500
5,000
10,000
Section 131 of CCP
Changes in the corporate

name, purpose and
addition of purposes
without filing a petition to
amend license
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
computed
PURPOSE
3.4. REGIONAL AREA HEADQUARTERS


LEGAL BASIS/
SUBJECT REPORT
VIOLATION
LATE FILING
FIRST OFFENSE
(Amounts in Pesos)
19
LEGAL BASIS/
SUBJECT REPORT
AND

VIOLATION
NON-FILING

AND
Section 68 of SRC;
SRC Rule 68
FIRST OFFENSE
(Amounts in Pesos)
Up to 100,000: 750
100,001 to 500,000: 1,500
500,001 to 10,000,000: 2,500
10,000,001 to 100,000,000:
3,500
Above 100,000,000: 5,000
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

Total fine plus

computed
Total fine plus

computed
Up to 100,000: 1,500
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
MATERIAL DEFICIENCY


Up to 100,000: 500
100,001 to 500,000: 1,000
500,001 to 5,000,000: 2,000
5,000,001 to 10,000,000: 3,000
Above 10,000,000: 4,000
Up to 100,000: 1,000
100,001 to 500,000: 2,000
500,001 to 5,000,000: 4,000
5,000,001 to 10,000,000:
6,000
Above 10,000,000: 8,000

Statements
Up to 100,000: 2,000
100,001 to 500,000: 4,000
500,001 to 5,000,000: 8,000
5,000,001 to 10,000,000:
12,000
Above 10,000,000: 16,000
20
LEGAL BASIS/
SUBJECT REPORT
Section 68 of SRC;
SRC Rule 68
VIOLATION
MATERIAL
MISSTATEMENT/
MISREPRESENTATION

REQUIREMENTS OF SRC
RULE 68
FIRST OFFENSE
(Amounts in Pesos)
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
the amount of
higher



Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
5,000,001 to 10,000,000:
2,000
Above 10,000,000: 4,000
Up to 100,000: 800
100,001 to 500,000: 1,200
500,001 to 5,000,000 : 2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
3.4.b OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
Memorandum Circular No. 15,Series
of 2006; Article 58 & 59 of the
Initial Remittance of at least
US$50,000 or its equivalent in
other foreign currencies converted
to Philippine currency (within 30
days after the issuance of the
license)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
Failure to remit the

required amount within
the prescribed period
Basic fine of 10,000
delay
21
LEGAL BASIS/
REQUIREMENT
of 2006; Article 58 &59 of the
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Basic Fine - .003 of the actual

remittance
Surcharge of 500
per month of delay
Basic Fine - .004 of the actual

remittance
Surcharge of 1,000 per month
of delay
Basic Fine - .005 of the

actual remittance
Surcharge of 1,500 per
month of delay
LATE FILING
1,250
2,500
5,000
NON-FILING
2,500
5,000
10,000
Basic fine: 5000.00
Failure to remit the

required amount within
the prescribed period
Annual Remittance of at least

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)

of 2006
AFFIDAVIT OF NON-OPERATION
Section 131 of CCP

PURPOSE

name, purpose and
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/
SUBJECT REPORT
VIOLATION
LATE FILING

AND

THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
computed
Total fine plus

computed
Total fine plus

computed
Up to 100,000: 250
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
NON-FILING

AND

amended

SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed

Up to 100,000: 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
MATERIAL DEFICIENCY


Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000

Statements
Up to 100,000: 800
100,001 to 500,000: 1,200
23
LEGAL BASIS/
SUBJECT REPORT

SUPPORTING DOCUMENTS TO
THE FINANCIAL STATEMENTS:
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)
amended
VIOLATION
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
SECOND OFFENSE
(Amounts in Pesos)
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
LATE FILING
2,500
5,000
10,000
NON-FILING
5,000
10,000
20,000

whichever is higher

whichever is higher

of the amount of
higher



Statements
Up to 100,000: 200
100,001 to 500,000: 300
500,001 to 5,000,000 : 500
Up to 100,000: 400
100,001 to 500,000: 600
500,001 to 5,000,000 : 1,000
MATERIAL
MISSTATEMENT/
MISREPRESENTATION

REQUIREMENTS OF SRC
RULE 68
THIRD OFFENSE
(Amounts in Pesos)
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
Up to 100,000: 800
100,001 to 500,000: 1,200
24
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
5,000,001 to 10,000,000: 1,000
Above 10,000,000: 2,000
SECOND OFFENSE
(Amounts in Pesos)
5,000,001 to 10,000,000: 2,000
Above 10,000,000: 4,000
THIRD OFFENSE
(Amounts in Pesos)
500,001 to 5,000,000 :
2,000
5,000,001 to 10,000,000:
4,000
Above 10,000,000: 8,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
5,000
5,000
4.2. OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
Section 16 of CCP
CORPORATE NAME
VIOLATION
name without
amendment of the
Section 16 of CCP
Changes in the Principal

Office Address without
amendment of the
Section 16 of CCP
BOARD OF TRUSTEES
Increase in number of
Board of Trustees
the Articles of
Incorporation
Section 16 of CCP
Changes in corporate
purpose without
amendment of the
PURPOSE
25
LEGAL BASIS/
REQUIREMENT
Section 25 of CCP
SECRETARY AND/ OR TREASURER
Section 25 of CCP
IS NOT A MEMBER OF THE
BOARD OR A STOCKHOLDER
Section 25 of CCP
VIOLATION
Election of President as
Secretary and/or
Treasurer
Election of a President
who is not a member of
the Board of Trustees
Election of a Secretary
who is not a Filipino
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
2,500
5,000
n/a
n/a
500
n/a
n/a
2,500
2,500
2,500
2,500
2,500
2,500

Section 46 of CCP
BY-LAWS
NON-REGISTRATION OF
BY-LAWS
Section 46 of CCP
BY-LAWS
LATE REGISTRATION OF
BY-LAWS
Section 48 of CCP
CHANGES IN FISCAL
YEAR WITHOUT
AMENDMENT OF THE
BY-LAWS
FISCAL YEAR
Section 48 of CCP
CHANGES IN THE
ANNUAL DATE OF
MEETING WITHOUT
AMENDMENT OF THE
BY-LAWS
26
LEGAL BASIS/
REQUIREMENT
Section 50 of CCP
VIOLATION
NON-HOLDING OF
MEETING
FIRST OFFENSE
(Amounts in Pesos)
2,500
SECOND OFFENSE
(Amounts in Pesos)
2,500
THIRD OFFENSE
(Amounts in Pesos)
2,500
1,000
n/a
n/a
FIRST OFFENSE
(Amounts in Pesos)
50,000
SECOND OFFENSE
(Amounts in Pesos)
n.a.
THIRD OFFENSE
(Amounts in Pesos)
n.a.
10,000 plus daily penalty and

for blacklisting and revocation
of primary franchise (for
continuous non-compliance)
n.a.
n.a.
MEMBERSHIP BOOK
LATE FILING OF
MEMBERSHIP BOOK
B. REGISTERED CORPORATIONS WITH SECONDARY LICENSE

(5) LENDING COMPANIES
Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
5.1. LICENSING REQUIREMENT
LEGAL BASIS/
SUBJECT REPORT
Section 4 of LCRA of 2007; Rule
3(b) of its IRR
Sec. 4 of LCRA of 2007; Rule 3(b)

of its IRR
CERTIFICATE OF AUTHORITY (CA)
FOR HEAD OFFICE
VIOLATION
Engaging in Lending
Activities without
Registration as
Corporation
Operating a Lending
Company Head Office
without a Certificate of
Authority from SEC
27
Sec. 4 of LCRA of 2007; Rule 3(c)

of its IRR
CA FOR BRANCH OFFICE
5.2.
Operating a Branch,
Extension, Satellite or
Unit Office without a
Certificate of Authority
from SEC
10,000 plus 100 daily penalty
Suspension of CA
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus
100 daily
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
NON-FILING
Suspension of CA
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION IN
THE AFS
1/10 of 1% of the amount of

misstatement

misstatement
P30,000 or 1/30 of 1% of
the amount of
misstatement
MATERIAL DEFICIENCY
1,000 or 500 per material

deficiency,
whichever is higher
2,000 or 1,000 per material

deficiency,
whichever is higher
4,000 or 2,000 per material

deficiency,
whichever is higher

REQUIREMENTS OF SRC
RULE 68
10,000
20,000
30,000
REPORTORIAL REQUIREMENTS
LEGAL BASIS/
SUBJECT REPORT
Sec. 9 of LCRA of 2007; Rule 8(a)
of its IRR
AUDITED FINANCIAL
STATEMENTS
Sections 68 and 54 of the
Securities Regulation Code
ANNUAL FINANCIAL
STATEMENTS
VIOLATION
LATE-FILING
28
LEGAL BASIS/
SUBJECT REPORT
of its IRR
VIOLATION
LATE-FILING
FIRST OFFENSE
(Amounts in Pesos)
5,000 plus
100 daily
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
Suspension of CA
INTERIM FINANCIAL
STATEMENTS
NON-FILING
Sections 68 and 54 of SRC
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000 per FS or 500 per

material deficiency,
whichever is higher
15,000 per FS or P1,000 per

whichever is higher
30,000 per FS or 2,000 per

whichever is higher
MATERIAL DEFICIENCY
10,000 or 1/10 of 1% of the

whichever is higher
20,000 or 1/20 of 1% of the

whichever is higher
30,000 or 1/30 of 1% of the

whichever is higher

REQUIREMENTS OF SRC
RULE 68
P10,000
P20,000
P30,000
LATE-FILING
10,000 plus
100 daily penalty
15,000 plus
100 daily penalty
Suspension of CA
NON-FILING
Suspension of CA
LATE FILING

Total fine plus

10% of the total fines computed
Total fine plus

computed
INTERIM FINANCIAL
STATEMENTS

of its IRR
SPECIAL FORM OF FINANCIAL
STATEMENTS (LCFS)
(hard and soft copies)

GENERAL INFORMATION SHEET
SECOND OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
29
LEGAL BASIS/
SUBJECT REPORT
Section 141 of CCP
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
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
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

Total fine plus

computed
Total fine plus

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
IRR of SRC
LATE FILING
10,000 plus
100 daily penalty
15,000 plus
100 daily penalty
Suspension of CA
ANNUAL INFORMATION
STATEMENT FOR ISSUERS OF
COMMERCIAL PAPERS
NON-FILING
20,000 plus
100 daily penalty
25,000 plus
100 daily penalty
Suspension of CA
INCOMPLETE REPORT
10,000 plus
100 daily penalty
10,000 plus
100 daily penalty
Suspension of CA
5,000 plus
100 daily
10,000 plus
100 daily
Suspension of CA
Suspension of CA
15,000
20,000
Rule 17.1(2)(c) of the Amended

IRR of SRC
QUARTERLY REPORT FOR
ISSUERS OF COMMERCIAL
PAPERS
LATE FILING
NON-FILING
INCOMPLETE REPORT

10,000
30
LEGAL BASIS/
SUBJECT REPORT
SEC MC no. 2, S. of 2010
REVISED ANTI-MONEY
LAUNDERING OPERATING
MANUAL
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily penalty
SECOND OFFENSE
(Amounts in Pesos)
n.a.
THIRD OFFENSE
(Amounts in Pesos)
n.a
20,000 plus
100 daily penalty
n.a.
n.a.
2,000
n/a
n/a
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO COMMENCE
OPERATION WITHIN 120
DAYS FROM THE DATE
OF GRANT OF CA
(MAIN AND/OR
BRANCH)
10,000
20,000
Suspension of CA
10,000 plus
100 daily penalty
20,000 plus
100 daily penalty
Suspension of CA
25,000 plus
100 daily penalty
20,000 plus 100 per day of
continuing violation
30,000 plus
100 daily penalty
Suspension of CA
LATE FILING
NON-FILING
Sec. 74 of CCP
LATE REGISTRATION
5.3. OPERATIONAL, PRUDENTIAL, OTHER REQUIREMENTS

LEGAL BASIS/
SUBJECT REPORT
Sec. 9 of LCRA of 2007; Rule 3(e)
of its IRR
COMMENCEMENT OF
OPERATION WITHIN 120 DAYS
Sec. 9 of LCRA of 2007; Rule

3(d)(ii) of its IRR
LATE PAYMENT OF
ANNUAL FEE
ANNUAL FEE
NON-PAYMENT OF
ANNUAL FEE
Failure to furnish a
debtor with a disclosure
statement that is
compliant with the
requirements of BSP
Circular No. 730 dated
July 20, 2011
Sec. 7 of LCRA of 2007; Rule 6(b)

of its IRR, SEC MC 7, S. of 2011
DISCLOSURE STATEMENT

31
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

of its IRR; Sections 54 and 68 of
SRC
FAILURE TO ENGAGE THE

SERVICES OF AN
EXTERNAL AUDITOR
W/O GROUP C OR
HIGHER (A OR B) SEC
ACCREDITATION
25,000
50,000
100,000
BREACH OF LIMIT
1% of the amount of
investment in real estate in
excess of 25% of the
companys networth
3% of the amount of
excess of 25% of the companys
networth
Suspension of CA
BREACH OF LIMIT
1% of the amount of credit

extended in excess of 15% of
the companys networth

Suspension of CA
BREACH OF LIMIT


Suspension of CA
ACCREDITATION
OF EXTERNAL AUDITOR
Sec.9 of LCRA of 2007; Rule 3(g) of

its IRR
INVESTMENT IN REAL ESTATE
SHALL NOT EXCEED 25% OF THE
COMPANYS NETWORTH
Sec. 9 of LCRA of 2007; Rule 3(h)
TOTAL CREDIT EXTENDED TO THE
COMPANYS DIRECTORS,
OFFICERS, STOCKHOLDERS AND
RELATED INTERESTS (DOSRI)
COMPANYS NETWORTH
Sec 9 of LCRA of 2007; Rule 3(i) of
its IRR
TOTAL CREDIT EXTENDED TO ANY
PERSON, WHETHER INDIVIDUAL,
PARTNERSHIP OR CORPORATION
(SINGLE BORROWER LIMIT)
COMPANYS NETWORTH
32
LEGAL BASIS/
SUBJECT REPORT
Sec. 9 of LCRA of 2007; Rule 3(f)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
PRESCRIBED RATIO NOT

MET
1% of the amount of deficiency
Suspension of CA
MISREPRESENTATION OR
MISSTATEMENT
20,000
P30,000
Suspension of CA
Suspension of CA
(Please see pages 3 to 5

of this Scale)

of this Scale)

of this Scale)
MORE THAN 50% OF THE FUNDS

MUST BE USED IN LENDING
ACTIVITIES
Sec 12 of LCRA of 2007; Rule 10 of
its IRR
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
its IRR
MINIMUM REQUIRED CAPITAL
Corporation Code of the

Philippines (CCP)
Failure to comply with

the required capital
and/or maintain a net
worth of not less than
the minimum required
Paid-up Capital
VIOLATIONS OF ANY OF
THE PROVISIONS OF THE
CCP
REQUIREMENTS FOR A STOCK

CORPORATION
33
(6) FINANCING COMPANIES

Department-in-Charge: INVESTOR PROTECTION AND GOVERNANCE DEPARTMENT
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
P 100,000
SECOND OFFENSE
(Amounts in Pesos)
n.a.
THIRD OFFENSE
(Amounts in Pesos)
n.a.
n/a
n/a
SEC 2 of the IRR of the Financing

Company Act (FCA)
Engaging in Financing
Activities without
Certificate of Authority
Sec. 7(c) of FCA of 1998; Sec 4& 5,

IRR
Operating a Financing
Company Head Office
Authority from SEC
10,000 plus
100 per day
Operating a Financing
Company Branch office
Authority from SEC
10,000 plus
100 per day
20,000 plus 100 per day
LATE-FILING
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
NON-FILING

FOR HEAD OFFICE
Section 6(a), IRR
FOR BRANCH

LEGAL BASIS/
SUBJECT REPORT
Section 13(b), IRR
AUDITED FINANCIAL STATEMENTS
VIOLATION
34
LEGAL BASIS/
SUBJECT REPORT
Sections 54 and 68 of SRC;
SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
10,000 per AFS or 1,000 per
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
whichever is higher
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000 or 1/10 of 1% of the

whichever is higher
20,000 or 1/20 of 1% of the

whichever is higher
40,000 or 1/30 of 1% of the

whichever is higher
10,000
20,000
30,000

REQUIREMENTS OF SRC
RULE 68
LATE-FILING

STATEMENTS
NON-FILING
1,000
2,000
4,000
LATE FILING
NON-FILING
MATERIAL DEFICIENCY
OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS
Section 13(a), IRR
QUARTERLY FINANCIAL
STATEMENTS
(up to December 2007 only)
35
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 68
QUARTERLY FINANCIAL
STATEMENTS
(up to December 2007 only)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
MATERIAL DEFICIENCY
MATERIAL
MISSTATEMENT OR
MATERIAL
MISREPRESENTATION
SEC MC No. 3, S. of 2007
LATE FILING
INTERIM FINANCIAL STATEMENTS

(from January 2008 to present)
NON-FILING
MATERIAL DEFICIENCY
10,000 per FS or 500 per

whichever is higher1
15,000 per FS or 1,000 per

30,000 per FS or 2,000 per

MATERIAL
MISSTATEMENT OR
MATERIAL
MISREPRESENTATION
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

10,000
20,000
30,000

Total fine plus

Total fine plus

Computed

REQUIREMENTS OF SRC
RULE 68
LATE FILING
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
LEGAL BASIS/
SUBJECT REPORT
Section 141 of CCP
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
3,500
Above 10,000,000: 5,000
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

Total fine plus

computed
Total fine plus

Computed
n/a
n/a
n/a
n/a
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
amended
LATE-FILING
10,000 plus
100 daily
ANTI-MONEY LAUNDERING
MANUAL
NON-FILING
Revised Code on Corporate

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
Suspension of CA

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
CERTIFICATION BY THE SECRETARY

ON THE ATTENDANCE OF
DIRECTORS TO MEETING
NON-FILING
Suspension of CA
37
LEGAL BASIS/
SUBJECT REPORT
Governance
CERTIFICATION BY THE
COMPLIANCE OFFICERS ON THE
EXTENT OF COMPLIANCE WITH
MANUAL ON CORPORATE
GOVERNANCE
Governance; Section 54 of SRC
VIOLATION
LATE-FILING
NON-FILING
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus
100 daily
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
Suspension of CA
10,000
20,000
Suspension of CA
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
ANNUAL INFORMATION
STATEMENT FOR ISSUER OF
COMMERCIAL PAPERS
NON-FILING
INCOMPLETE REPORT
Sec. 17.1 of SRC; SRC Rule 17.1.2.C
LATE FILING
5,000 plus
100 daily penalty
10,000 plus
100 daily penalty
Suspension of CA
QUARTERLY REPORT FOR ISSUERS

OF COMMERCIAL PAPERS
NON-FILING
10,000 plus
100 daily penalty
15,000 plus
100 daily penalty
Suspension of CA
INCOMPLETE REPORT
10,000
15,000
20,000
LATE REGISTRATION
2,000
n/a
n/a
Sec 74 of CCP
38
6.3. OPERATIONAL, PRUDENTIAL AND OTHER REQUIREMENTS

LEGAL BASIS/
SUBJECT REQUIREMENTS
Section 5(b)/6d, IRR
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
20,000
THIRD OFFENSE
(Amounts in Pesos)
30,000
COMMENCEMENT OF
OPERATIONS
FAILURE TO OPERATE
WITHIN 120 DAYS FROM
GRANT OF CA (MAIN
AND/OR BRANCH OFFICE)
Section 8, IRR
LATE PAYMENT
ANNUAL FEE
NON-PAYMENT
Section 9(a), IRR
BREACH OF LIMIT
1% of the amount of
excess of 25% of the companysnetworth
2% of the amount of
excess of 25% of the companys
networth
6% of the amount of
excess of the companysnetworth
FUNDS USED IN
FINANCING ACTIVITIES
BELOW THE THRESHOLD



TOTAL CREDIT EXTENDED

TO A SINGLE BORROWER
EXCEEDS LIMITS



INVESTMENT IN REAL ESTATE

COMPANYS NETWORTH
Section 9(b), IRR
INVESTMENT OF MORE THAN 50%
OF FUNDS MUST BE USED IN
FINANCING ACTIVITIES
Section 9(d), IRR
TOTAL CREDIT EXTENDED TO ANY
PERSON, CORPORATION OR FIRM
COMPANYS NETWORTH (SINGLE
BORROWER LIMIT)
39
LEGAL BASIS/
Section 9(e), IRR
UNCOLLECTED INTEREST INCOME
SHALL NOT BE RECOGNIZED ON
LOANS AND LEASE RECEIVABLES
THAT REMAIN OUTSTANDING
BEYOND THEIR MATURITY DATE
Section 9(f), IRR
SETTING OF 100% ALLOWANCE
FOR PROBABLE LOSSES IF THE
CRITERIA IS MET
Sections 11, 2(b) & 6(c),IRR
REQUIRED PAID-UP CAPITAL
SEC MC No. 7, S. of 2011

PROVIDE A DISCLOSURE
STATEMENT TO A BORROWER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
1% of the amount of
uncollected interest income
outstanding beyond maturity
date
SECOND OFFENSE
(Amounts in Pesos)
2% of the amount of
outstanding beyond maturity
date
THIRD OFFENSE
(Amounts in Pesos)
6% of the amount of
outstanding beyond
maturity date
FAILURE TO SET UP 100%

ALLOWANCE FOR
PROBABLE LOSSES
DESPITE PRESENCE OF
1% of the amount of
deficiency
6% of the amount of
deficiency
FAILURE TO COMPLY
WITH THE REQUIRED
PAID-UP CAPITAL
AND/OR MAINTAIN A
NETWORTH OF NOT LESS
THAN THE MINIMUM
REQUIRED PAID-UP
CAPITAL
1% of the amount of
deficiency
6% of the amount of
deficiency
FAILURE TO FURNISH A
DEBTOR WITH
DISCLOSURE STATEMENT
THAT IS COMPLIANT
WITH BSP CIRCULAR NO.
730 DATED JULY 20, 2011
20,000 plus
100 per day of continuing
violation

30,000 plus
violation
INCORRECT RECOGNITION
OF UNCOLLECTED
INCOME
40
LEGAL BASIS/
ACCREDITATION OF EXTERNAL
AUDITOR

Philippines (CCP)
VIOLATION
SERVICES OF AN
EXTERNAL AUDITOR W/O
GROUP C OR HIGHER (A
OR B) SEC
ACCREDITATION
CCP
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
50,000
THIRD OFFENSE
(Amounts in Pesos)
100,000

of this Scale)

of this Scale)

of this Scale)

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
LEGAL BASIS/
REQUIREMENTS
VIOLATION
Sections 8 and 12 of the Securities Selling or distribution of

Regulation Code (SRC);
securities to the public
without prior registration or
permit to sell
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
5% of the amount of each

transaction or 10,000 per
transaction but not less than
300,000.

600,000.

1,000,000.
41
LEGAL BASIS/
REQUIREMENTS
Sections 7 and 24 of ICA (for
mutual funds);
Section 7 of ETF Rules (for
exchange traded funds)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Selling or distribution of
permit to sell

300,000.

600,000.

1,000,000.
Maximum
1,000,000
(amount may be adjusted
depending on mitigating
circumstance present)
[see page no. of Circular]
Maximum
1,000,000
[see page no. of the Circular]
Maximum
1,000,000
[see page no. of the Circular]
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000 plus
20,000 plus
60,000 plus
For listed companies:

20,000 plus

40,000 plus

120,000 plus
REGISTRATION OF SECURITIES
Offering for sale of
PRIOR TO PUBLIC OFFERING AND
SALE
permit to sell
7.2.
EXEMPTION FROM REGISTRATION OF SECURITIES

LEGAL BASIS/
REQUIREMENTS
Section 10 of SRC; SRC Rule 10.1

FILING OF NOTICE OF
EXEMPTION PURSUANT TO SRC
RULE 10.1 (K AND L)
VIOLATION
LATE FILING OF NOTICE
42
LEGAL BASIS/
REQUIREMENTS
VIOLATION
NON-COMPLIANCE WITH
THE DISCLOSURE
REQUIREMENTS UNDER
SRC RULE 10.1
Section 10.2 of SRC
LATE FILING OF REPORT
FILING OF REPORT SHOWING

NAMES OF OPTIONEES AND
NUMBER OF SHARES SUBSCRIBED
AND AMOUNT PAID
NON-FILING OF REPORT
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,500 plus
21,000 plus
63,000 plus

21,000 plus

42,000 plus

120,000 plus
1,000 per day of delay

of delay in filing the report










150,000.00 plus 300 per day

43
7.3. AMENDMENT OF REGISTRATION STATEMENT OF ISSUERS OF SECURITIES TO THE PUBLIC

LEGAL BASIS/
REQUIREMENTS
AMENDMENT OF REGISTRATION
STATEMENT TO REFLECT A
MATERIAL CHANGE
VIOLATION
FAILURE TO AMEND
REGISTRATION
STATEMENT IN ACCORD
ANCE WITH SRC RULE 14
Change in the Qualitative
Terms and Conditions of the
Securities including work
program or use of proceeds
INCREASE IN THE NUMBER
OF SHARES OR OFFERING
PRICE PER SHARE (IN
EXCESS OF THE PRICE
RANGE, IF ANY) WITHOUT
PRIOR APPROVAL OF THE
AMENDMENT
FAILURE TO TIMELY
PUBLISH THE NOTICE OF
AMENDMENTS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,500 plus
100 per day of delay of the
filing of the amendment
21,000 plus
200 per day of delay of the filing
of the amendment
63,000 plus
600 per day of delay of the
filing of the amendment
5% of the amount of each sale 7% of the amount of each sale in

in excess of the authorized
excess of the authorized shares
shares or price, or 10,500 per
or price, or 21,000 per
sale in excess of the
transaction, whichever is
transaction, whichever is higher, authorized shares or price, or
higher, plus 100 per day of
plus 200 per day of delay of filing
63,000 per transaction,
delay of the filing of the
of the amendment.
whichever is higher,
amendment
plus 600 per day of delay of
the filing of the amendment.
10,500 plus
21,000 plus
63,000 plus
44
7.4. GENERAL REPORTORIAL REQUIREMENTS

(FOR ISSUERS OF SECURITIES, MUTUAL FUNDS, EXCHANGE TRADED FUNDS AND PUBLIC COMPANIES)
LEGAL BASIS/
REPORT
Section 17.1 of SRC;
SRC Rule 17.1 (1)(A)(iii)
VIOLATION
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
LATE FILING OF
CURRENT REPORT
(SEC FORM 17-C)
0.0003% 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 or total issued and outstanding
or 20,000, whichever is higher
30,000, whichever is higher
shares or 40,000, whichever
plus 100 per day of delay
is higher
NON-FILING OF
CURRENT REPORT
(SEC FORM 17-C)

is higher
LATE FILING OF
QUARTERLY REPORT
(SEC FORM 17-Q)

0.001 of the maximum
aggregate amount of the total
plus300 per day of delay
is higher
Plus 600 per day of delay
NON-FILING OF
QUARTERLY REPORT
(SEC FORM 17-Q)

shares or 150,000,
whichever is higher
Plus 1,000 per day of delay
CURRENT REPORT
Section 17.1;
SRC Rule 17.1 (1)(A)(ii)
FIRST OFFENSE
(Amounts in Pesos)
QUARTERLY REPORT
45
LEGAL BASIS/
REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

until a complete report is filed


until a complete report is
filed
MATERIAL DEFICIENCY IN
THE INTERIM FS
10,000 per AFS or 5,000 for

each material deficiency,
whichever is higher
20,000 per AFS or 10,000 for

whichever is higher
40,000 per AFS or 20,000 for

whichever is higher
MATERIAL MISSTATEMENT
OR MISREPRESENTATION
IN THE INTERIM FS
10,000 or 1/100 of 1% of the

whichever is higher
20,000 or 1/200 of 1% of the

whichever is higher
30,000 or 1/300 of 1% of the

whichever is higher
OTHER NON-COMPLIANCE
WITH THE REQUIREMENTS
OF SRC RULE 68
10,000
20,000
30,000
INCOMPLETE
QUARTERLY REPORT
(SEC FORM 17-Q)
Section 17.1;
SRC Rule 17.1 (1)(A)(i)
LATE FILING OF
ANNUAL REPORT
(SEC FORM 17-A)

shares or 200,000,
plus
whichever is higher
plus
NON-FILING OF
ANNUAL REPORT
(SEC FORM 17-A)

or 200,000, whichever is higher 300,000, whichever is higher
shares or 400,000,
whichever is higher
ANNUAL REPORT
46
LEGAL BASIS/
REPORT
VIOLATION
INCOMPLETE
ANNUAL REPORT
(SEC FORM 17-A)

AUDITED FINANCIAL
STATEMENTS
MATERIAL DEFICIENCY
OF SRC RULE 68
Section 20 [in relation with
17.1(b)] SRC Rule 20
INFORMATION STATEMENT
LATE FILING OF
INFORMATION
STATEMENT
(SEC FORM 20-IS)
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)


65,000 plus 1,000 per day

until a complete report is
filed
10,000 for each material

deficiency

deficiency

deficiency
10,000 or
20,000 or
30,000 or

higher

higher

higher
P10,000
20,000
30,000

or 50,000, whichever is higher,
100,000, whichever is higher,
shares or 200,000,
plus
whichever is higher plus
47
LEGAL BASIS/
REPORT
VIOLATION
THIRD OFFENSE
(Amounts in Pesos)

or P100,000, whichever is
200,000, whichever is higher plus
shares or 400,000,
higher plus
INCOMPLETE
INFORMATION
STATEMENT
(SEC FORM 20-IS)
20,000.00 plus 200 per day of

delay of filing an amended
statement
40,000.00 plus 500 per day of

delay of filing an amended
statement
80,000.00 plus 1,000 per day

of delay of filing an amended
statement

of continuing violation

100,000 plus 1,000 per day

15,000 plus
25,000.00 plus
105,000 plus
violation
210,000 plus
1,000 per day of continuing
violation
Section 17.1 of SRC; SRC Rule 17.1 LATE FILING OF NOTICE

NOTICE OF SUSPENSION TO FILE
REPORTS (SEC FORM 17-EX)
SECOND OFFENSE
(Amounts in Pesos)
NON- FILING OF
INFORMATION1
STATEMENT
(SEC FORM 20-IS)
FAILURE TO COMPLY WITH

ANY OF THE OTHER
PROCEDURAL
REQUIREMENTS OF
SRC RULE 20
Section 54 of SRC
FIRST OFFENSE
(Amounts in Pesos)
MISLEADING STATEMENTS
IN ANY REPORTS
REQUIRED TO BE
SUBMITTED TO THE
COMMISSION
50,000.00 plus
420,000 plus
violation
In instances where the company conducted a meeting.
48
7.5. REPORTORIAL AND OTHER REQUIREMENTS FOR BENEFICIAL OWNERS AND ACQUIRERS OF EQUITY SECURITIES
LEGAL BASIS/
REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
LATE FILING OF REPORT

purchase or disposition, or
10,000 per transaction
whichever is higher plus 100
per day of delay

transaction, or 20,000 per
transaction, whichever is higher

higher plus 300 per day of
delay
NON-FILING OF REPORT

per day of delay


delay
REPORTS BY 5% OR MORE
HOLDERS OF EQUITY SECURITIES
(SEC FORM 18-A/18-AS)
INCOMPLETE REPORT

delay of the submission of
the amended report
LATE FILING OF
STATEMENT

P100 per day of delay


delay
NON-FILING OF
STATEMENT

per day of delay


delay
STATEMENT OF BENEFICIAL
OWNERSHIP (SEC FORM 23-A/B)
20,000 plus 300 per day of delay of 30,000 plus 600 per day of
the submission of the amended
report
the amended report
49
LEGAL BASIS/
REPORT
VIOLATION
INCOMPLETE STATEMENT
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

the amended report
20,000 plus 200 per day of delay of 30,000 plus 300 per day of
the submission of the amended
report
the amended report

delay in the submission of
the report
20,000 plus 200 per day of delay in

the submission of the report

the report
LATE FILING OF A REPORT

SHOWING MORE THAN 100
SHARES BUT LESS THAN 5%
OF THE OUTSTANDING
EQUITY SECURITIES

the report


the report

SHOWING MORE THAN 5%
BUT LESS THAN 10%

the report


the report
Section 19.1 of SRC; SRC Rule 19.1 LATE FILING OF TENDER

OFFER REPORT (SEC FORM
TENDER OFFER REQUIREMENTS 19-1)

delay
of filing the report
105,000 plus 1,000 per day of

delay
of filing the report
210,000 plus 2,000 per day

of delay
of filing a the report
NON-FILING OF TENDER
OFFER REPORT (SEC FORM
19-1)

delay of filing the report

delay of filing the report
400,000 plus 2,000 per day

of delay of filing a the
report

SHOWING QUALIFYING
BENEFICIAL OWNERSHIP REPORT SHARES (NOT MORE THAN
OF DIRECTORS AND OFFICERS
100 SHARES)
50
LEGAL BASIS/
REPORT
Section 54 of the Securities

Regulation Code
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
INCOMPLETE TENDER
OFFER REPORT
(SEC FORM 19-1)

delay of filing the amended
report
63,000 plus 1,000 per day of delay

of filing the amended report
130,000 plus 2,000 per day

of delay of filing the
amended report
FAILURE TO CONDUCT A
TENDER OFFER
105,000 or 0.01% of the

tender offer, whichever is
higher, plus 500 per day of
210,000 or 0.02% of the aggregate

amount of the tender offer,
whichever is higher, plus 1,000 per
day of continuing violation
315,000 or 0.06% of the

tender offer, whichever is
higher, plus 2,000 per day

ANY OTHER
REQUIREMENTS OF SRC
RULE 19-1 AND RELATED
GUIDELINES


210,000 plus 2,000 per day

MISLEADING STATEMENTS
IN ANY FILINGS REQUIRED
TO BE SUBMITTED TO THE
COMMISSION
105,000 plus
violation
210,000 plus
violation
420,000 plus
violation
7.6. OTHER REQUIREMENTS FOR ISSUERS OF SECURITIES TO THE PUBLIC AND PUBLIC COMPANIES
LEGAL BASIS/
REQUIREMENTS
ELECTION OF INDEPENDENT
DIRECTORS
VIOLATION
FAILURE TO ELECT
INDEPENDENT
DIRECTOR(S) OR ELECTION
OF AN UNQUALIFIED
INDEPENDENT DIRECTORS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
50,000 plus
violation
100,000 plus
500 per day of
150,000 plus
violation
51
LEGAL BASIS/
REQUIREMENTS
ACCREDITATION
OF EXTERNAL AUDITOR
Revised Rules Governing Offers of
Pre-emptive Rights and
Declaration of Stock Cash or
Property Dividends of
Corporations whose Securities are
Registered under the Revised
Securities Act; SEC Memorandum
Circular No. 2, Series of 2009
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

SERVICES OF AN EXTERNAL
AUDITOR WITHOUT A
GROUP A ACREDITATION
100,000
200,000
400,000
FAILURE TO OBSERVE THE

PRESCRIBED PERIODS
UNDER THE RULES AND
CIRCULAR
50,000 plus
200 per day of
Violation
100,000 plus
500 per day of
Violation
150,000 plus
1,000 per day of
Violation
DIVIDEND DECLARATIONS
7.7. ADDITIONAL REQUIREMENTS FOR MUTUAL FUNDS AND EXCHANGE TRADED FUNDS
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 8 of ICA
ELECTION OF CERTAIN
INELIGIBLE AFFILIATED
PERSONS AND
UNDERWRITERS
50,000 plus
300 per day of
100,000 plus
600 per day of
150,000 plus
1,800 per day of
Section 9 of ICA
UNAUTHORIZED
AFFILIATIONS OF
DIRECTORS, OFFICERS AND
EMPLOYEES
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
1,800 per day of
52
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 10 of ICA
PROHIBITED OFFER TO
EXCHANGE SECURITIES
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
1,800 per day of
Section 11 of ICA
UNAUTHORIZED OR
ILLEGAL ACTIVITIES OF
INVESTMENT COMPANIES
(Per illegal activity
/violation)
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
1,800 per day of
Section 12 of ICA
UNAUTHORIZED CHANGES
IN INVESTMENT POLICY
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
800 per day of
Section 14 of ICA
UNAUTHORIZED
CONTRACTS OF ADVISERS
AND UNDERWRITERS
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
800 per day of
Sections 22 & 23 of ICA;

ICA Rule 35-1 (e)
VIOLATION OF
REQUIREMENTS ON
DISTRIBUTION,
REDEMPTION, AND
REPURCHASE OF
SECURITIES
52,500 plus
300 per day of
105,000 plus
600 per day of
210,000 plus
800 per day of
Section 26 of ICA
EXCESSIVE PERIODIC
PAYMENT PLAN
25,000 plus
100 per day of
50,000 plus
300 per day of
100,000 plus
600 per day of
10,000 plus
100 per day of
20,000 plus
200 per day of
30,000 plus
400 per day of
Sections 25, 27 and 30 of ICA; ICA FAILURE TO SUBMIT

Rule 35-1(e)(3);
REQUIRED REPORTS
AND/OR TO PUBLISH DAILY
PRICES
53
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 32 of ICA
ANY REPORT
52,500 plus
300 per day of
105,000 plus
600 per day of
315,000 plus
1,800 per day of
ICA Rule 35-1(d);

Section 7.5 of ETF Rules
VIOLATION OF RECITED
INVESTMENT OBJECTIVES
AND RESTRICTIONS
25,000 plus
100 per day of
50,000 plus
300 per day of
100,000 plus
600 per day of
ICA Rule 35-1(c)(2);

ETF Rules Section 17.1
NON-DEPOSIT OF SALES
PROCEEDS TO A
CUSTODIAN BANK
10,500 plus
300 per day of
21,000 plus
500 per day of
52,500 plus
600 per day of
ICA Rule 35-1(c)(3)
REDEMPTION OF ORIGINAL
CAPITAL FOR LESS THAN 12
MONTHS
10,000 per redemption
ICA Rule 35-1(i)(2);

Section 27.1(a) of ETF Rules
LATE FILING OF MONTHLY

SALES/REDEMPTION
REPORT
10,000 plus
100 per day of
20,000 plus
200 per day of
30,000 plus
400 per day of
ICA Rule 35-1(i)(2);

ETF Rules Section 27.1(a)
NON-FILING OF MONTHLY
SALES/REDEMPTION
REPORT
20,000 plus
200 per day of
30,000 plus
300 per day of
60,000.00 plus
600 per day of
ICA Rule 35-1(e)(3);

ETF Rules Section 26
FAILURE TO EFFECT
REDEMPTION REQUEST
WITHIN 7 BANKING DAYS
Section 35 of ICA;
ICA Rule 35-1(g)(1)
FAILURE TO REGISTER AS
AN INVESTMENT
COMPANY ADVISER
50,000
75,000
100,000
54
7.8.
ADDITIONAL REQUIREMENTS FOR EXCHANGE TRADED FUNDS ONLY

LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Sections 8(4) and (5) of ETF Rules
FAILURE TO PUBLISH/
UPLOAD DAILY
PRICES/NAV/INAV
10,000 plus
100 per day of
20,000 plus
200 per day of
30,000 plus
400 per day of
Section 23 of ETF Rules
FAILURE TO
PUBLISH/UPLOAD ON A
DAILY BASIS THE
INFORMATION ON THE
INDEX AND PROTFOLIO
HOLDINGS
P10,000 plus
100 per day of
P20,000 plus
P200 per day of
P30,000 plus
P400 per day of
(8) INVESTMENT COMPANY ADVISERS/MUTUAL FUND DISTRIBUTORS

Department-In-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
LEGAL BASIS
VIOLATION
ICA Rule 35-1 (g) (1)
AN INVESTMENT
COMPANY ADVISER
Section 28.1, SRC
A MUTUAL FUND
DISTRIBUTOR
FIRST OFFENSE
(Amounts in Pesos)
50,000
SECOND OFFENSE
(Amounts in Pesos)
75,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
50,000
75,000
100,000
55
Section 40 of the Investment

Company Act
FAILURE TO REGISTER
AGENTS & INVESTMENT
SOLICITORS
COMPANY
10,000
15,000
20,000
INDIVIDUAL
5,000
10,000
15,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

LEGAL BASIS/
SUJBECT REPORT
(GIS)
ANNUAL AUDITED FINANCIAL

STATEMENTS (AFFS)
VIOLATION
LATE OR NON-FILING
OTHER VIOLATIONS
RELATING TO THE GIS
LATE OR NON-FILING OF
ANNUAL AUDITED
FINANCIAL STATEMENT
(AAFS)
See applicable violations

for stock corporations
See applicable violations for stock

corporations
See applicable violations

for stock corporations
10,000 plus 100/day of

delay
15,000 plus 100/day of delay
20,000
plus 100/day of delay
10,000 basic penalty Plus

100/day of delay

200/day of delay

300/day of delay
OTHER VIOLATIONS
RELATING TO THE AAFS
SRC Rule 28.1-1.E.2.xiii
SEC FORM ICA-IA (CHANGE IN
INFORMATION)
FAILURE TO NOTIFY ANY

CHANGE IN
INFORMATION WITHIN
SEVEN (7) DAYS FROM
THE DATE OF THE
OCCURRENCE OF THE
EVENT
56
LEGAL BASIS/
SUJBECT REPORT
SRC Rule 28.1-4.C
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO NOTIFY THE

COMMISSION WITHIN
THIRTY(30) DAYS AFTER
THE DISCONTINUATION
OF EMPLOYMENT

100/day of delay

200/day of delay

300/day of delay
SEC FORM ICA-CIS
FAILURE TO REPORT ANY

CHANGE IN
INFORMATION IN SEC
FORM ICA CIS
10,000 Plus 100/day of

delay
30,000 Plus 200/day of delay

delay
SEC FORM ICA-CO/AP

CHANGE IN
INFORMATION IN SEC
FORM ICA CO

delay

delay
SEC FORM MFD

CHANGE IN SEC FORM
MFD

100/day of delay

200/day of delay

300/day of delay
SEC FORM ICA-T
8.3. OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENT
ICA Rule 35-1 (g) (1)-A
VIOLATION
FAILURE TO MAINTAIN
THE MINIMUM
UNIMPAIRED NET
WORTH
FIRST OFFENSE
(Amounts in Pesos)
violation
SECOND OFFENSE
(Amounts in Pesos)
violation
THIRD OFFENSE
(Amounts in Pesos)
15,000
plus 100/day of violation
57
(9) BROKER DEALER OF SECURITIES , SALESMEN OR ASSOCIATED PERSONS OF BROKER OR DEALER; OTC PARTICIPANTS
Department-in-Charge: MARKETS AND SECURITIES REGULATION DEPARTMENT
LEGAL BASIS
Section 28.1
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
EQUITY SECURITIES
100,000
150,000
200,000
PROPRIETARY SHARES
50,000
75,000
100,000
OTHER SECURITIES
50,000
75,000
100,000
10,000 plus
100/day of operation
without registration
25,000 plus
100/day of operation without
registration
50,000 plus
10,000
5,000
15,000
10,000
20,000
15,000
ENGAGING IN THE
BUSINESS OF BUYING
AND SELLING SECURITIES
WITHOUT BEING
REGISTERED AS BROKERS.
DEALERS OF :
SRC Rule 28.1-1 (E) (vi)
BRANCH OFFICE
SRC Rule 28.1-4
ACTING AS A SALESMAN
OR AN ASSOCIATED
PERSON OF ANY BROKER
DEALER WITHOUT
REGISTRATION:
SALESMAN
A. COMPANY
B. INDIVIDUAL
58
LEGAL BASIS
VIOLATION
ASSOCIATED PERSON
A. COMPANY
B. INDIVIDUAL
FIRST OFFENSE
(Amounts in Pesos)
15,000
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
15,000
THIRD OFFENSE
(Amounts in Pesos)
30,000
20,000

LEGAL BASIS/
SUBJECT REPORT
SRC Rule 52.1-5
VIOLATION
LATE OR NON-FILING
AAFS
FIRST OFFENSE
(Amounts in Pesos)
delay
SECOND OFFENSE
(Amounts in Pesos)
15,000 plus 100/day of delay
THIRD OFFENSE
(Amounts in Pesos)
20,000
ANNUAL AUDITED FINANCIAL

STATEMENT (AAFS)
SEC Form 52 AR
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS
MATERIAL DEFICIENCY
10,000 per AFS or P1,000

per material deficiency,


MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
10,000 or 1/10 of 1% of the

whichever is higher
20,000 or 1/20 of 1% of the

whichever is higher
30,000 or 1/30 of 1% of the

whichever is higher
10,000
20,000
30,000
WITH THE
REQUIREMENTS OF SRC
RULE 68
LATE-FILING

STATEMENTS
59
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
1,000
2,000
4,000
MATERIAL DEFICIENCY OR
MATERIAL DISCREPANCY
WITH ANNUAL FINANCIAL
STATEMENTS
SRC Rule 49.1-1
LATE FILING OF RBCA

REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.

delay
[Note: Alternative proposal,
failure to file the RBCA:
within 7 days P25k
within 14 days P50k plus
suspension]
SRC Rule 49.1-1
FAILURE TO SUBMIT RBCA

REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.
25,000
50,000
100,000
SRC Rule 28.1-1 (E) (xiii)
FAILURE TO REPORT
AMENDMENT
SEC Memorandum Circular No.

16 series of 2004
10,000
Plus 100/day of delay
30,000
50,000
10,000 Plus
100/day of delay
30,000 Plus
200/day of delay
50,000 Plus
300/day of delay
SEC Form 28-BDA

SRC Rule 28.1-4 (C)
SEC Form 28-T
FAILURE TO NOTIFY
DISCONTINUATION OF
EMPLOYMENT OF
SALESMAN, ASSOCIATED
PERSON
60
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 30.2-6
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
Plus 100/day
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
VIOLATION OF RULES ON
AFFILIATED
TRANSACTIONS
5,000
10,000
25,000

CHANGE IN
INFORMATION IN SEC
FORM 28-S AND SEC
FORM 28-AP
10,000
30,000
50,000
Rules Governing the Trading of

PSE Shares
REPORT ON
TRANSACTIONS/TRADING
OF PSE SHARES
50,000
75,000
100,000

LATE FILING

Statements
Total fine plus

computed
Total fine plus

Computed
FAILURE TO TIMELY FILE

THE REPORT
QUARTERLY COMPLIANCE
REPORT
SEC Form BD 30.2 QCR
SRC Rule 30.1
SEC Form 30.1
SRC Rule 28.1-4 (H)
SEC Form 28-AMD
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
LEGAL BASIS/
SUBJECT REPORT
Section 141 of CCP
VIOLATION
SECOND OFFENSE
(Amounts in Pesos)
Total fine plus
computed
THIRD OFFENSE
(Amounts in Pesos)
Total fine plus
Computed
10,000 plus
100 daily
25,000 plus 100 daily
penalty
n/a
n/a
n/a
n/a
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
plus 100 daily penalty
30,000
Suspension of CA

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
SECRETARY ON THE
ATTENDANCE OF DIRECTORS TO
MEETING
NON-FILING
25,000
30,000
Suspension of CA
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
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

amended
LATE-FILING
NON-FILING
MANUAL
Governance
62
LEGAL BASIS/
SUBJECT REPORT
REVISED CODE OF CORPORATE
GOVERNANCE
CERTIFICATIONS ON CORPORATE
GOVERNANCE
(I.E. CERTIFICATION BY THE
CORPORATE SECRETARY ON THE
ATTENDANCE OF DIRECTORS AND
CERTIFICATION BY THE COMPLIANCE
OFFICERS ON THE EXTENT OF
COMPLIANCE WITH THE MANUAL OF
CORPORATE GOVERNANCE)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
25,000 plus
SECOND OFFENSE
(Amounts in Pesos)
50,000 plus
THIRD OFFENSE
(Amounts in Pesos)
75,000 plus
violation
ANY
THE SUBMITTED MANUAL
ON CORPORATE
GOVERNANCE
25,000 plus
violation
50,000.00 plus
violation
100,000 plus
violation
ANY VIOLATION OF THE

REVISED CODE OF
CORPORATE
GOVERNANCE (RCCG)
25,000 plus
violation
50,000.00 plus
violation
100,000 plus
violation
LATE FILING OF THE

ANNUAL CORPORATE
GOVERNANCE REPORT
50,000 plus
violation
100,000.00 plus
violation
Suspension or Revocation
NON-FILING OF THE
ANNUAL CORPORATE
GOVERNANCE REPORT
100,000 plus
violation
200,000.00 plus
violation
Suspension or Revocation
FAILURE TO SUBMIT ANY

OF THE REQUIRED
CERTIFICATIONS
(NB: Covered companies
per SEC Memo Circular
No. 5, S. 2013 are not
required to submit these
Certifications in view of
the implementation of the
ACGR)
63
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
MISREPRESENTATION/
OMISSION OF
INFORMATION IN THE
ANNUAL CORPORATE
GOVERNANCE REPORT
FIRST OFFENSE
(Amounts in Pesos)
25,000 plus
violation
SECOND OFFENSE
(Amounts in Pesos)
50,000.00 plus
violation
THIRD OFFENSE
(Amounts in Pesos)
100,000 plus
violation

Governance
MANUAL ON CORPORATE
GOVERNANCE
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
25,000
30,000
Suspension of CA

OTHER REQUIREMENTS,
OTHER REPRESENTATIONS IN
THE MANUAL OF CORPORATE
GOVERNANCE
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
10,000
20,000
Suspension of CA

LEGAL BASIS/
SRC Rule 24.1 (b)-1
SRC Rule 24.1 (d)-1
VIOLATION
VIOLATION OF
MANIPULATIVE
PRACTICES RULE
VIOLATION OF
ADVERTISEMENTS AND
COMMUNICATIONS
WITH PUBLIC RULE
FIRST OFFENSE
(Amounts in Pesos)
BD 100,000
AP/S 50,000
SECOND OFFENSE
(Amounts in Pesos)
BD 150,000 AP/S 75,000
THIRD OFFENSE
(Amounts in Pesos)
BD 200,000 AP/S
100,000
BD 50,000
AP/S 25,000
BD 100,000 AP/S 50,000
BD 150,000 AP/S 75,000
64
LEGAL BASIS/
SRC Rule 24.1 (d)-2
VIOLATION
VIOLATION OF
PUBLICATION OF
TRANSACTIONS AND
QUOTATIONS RULE
FIRST OFFENSE
(Amounts in Pesos)
BD 50,000
AP/S 25,000
SECOND OFFENSE
(Amounts in Pesos)
BD 100,000 AP/S 50,000
THIRD OFFENSE
(Amounts in Pesos)
BD 150,000 AP/S 75,000
SRC Rule 24.1 (d)-3
VIOLATION OF PAYMENT
TO INFLUENCE MARKET
PRICES RULE
BD 100,000
AP/S 50,000
BD 150,000 AP/S 75,000
BD 200,000 AP/S
100,000
SRC Rule 24.2-2
VIOLATION OF SHORT
SALES RULE
BD 50,000
AP/S 25,000
BD 100,000
AP/S 50,000
BD 150,000
AP/S 75,000
SRC Rule 24.2-3
VIOLATION OF
PROHIBITION ON
GUARANTEES AGAINST
LOSS RULE
BD 50,000
AP/S 25,000
BD 100,000
AP/S 50,000
BD 150,000
AP/S 75,000
SRC Section 25
VIOLATION OF
REGULATION OF OPTION
TRADING RULE
50,000
75,000
100,000
SRC Section 26
VIOLATION OF
FRAUDULENT
TRANSACTIONS RULE
BD 100,000
AP/S 50,000
BD 150,000
AP/S 75,000
BD 200,000
AP/S 100,000
SRC Rule 26.3-1
VIOLATION OF THE USE

OF INFORMATION
OBTAINED IN FIDUCIARY
CAPACITY
RULE
25,000
50,000
100,000
65
LEGAL BASIS/
SRC Rule 26.3-2 (b)
VIOLATION
VIOLATION OF
PROHIBITED
REPRESENTATIONS RULE
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
150,000
THIRD OFFENSE
(Amounts in Pesos)
200,000
SRC Section 27
VIOLATION OF INSIDER
TRADING RULE
BD 100,000
AP/S 50,000
BD 150,000
AP/S 75,000
BD 200,000
AP/S 100,000
SRC Rule 28.1-1 (E) (viii)
FAILURE TO MAINTAIN
REGISTERED AP
10,000 plus
100/day of operation without
registration
25,000 plus
50,000 plus
SRC 28.1-1(E)(xi)
FAILURE TO MAINTAIN
SEPARATE BANK
ACCOUNT FOR CLIENT
FUND
10,000
30,000
50,000
SRC Rule 30.2-1
VIOLATION OF THE
ETHICAL STANDARDS
RULE
25,000
50,000
100,000
SRC Rule 30.2-2
VIOLATION OF
CUSTOMER ORDERS RULE
10,000
30,000
50,000
SRC Rule 30.2-3
VIOLATION OF CLIENT
AGREEMENT RULE
10,000
30,000
50,000
VIOLATION OF CLIENT
AGREEMENT WITH
DISCRETIONARY
ACCOUNT RULE
25,000
50,000
100,000
66
LEGAL BASIS/
SRC Rule 30.2-4
SRC Rule 30.2-5
SRC Rule 30.2-6
VIOLATION
VIOLATION OF
SUITABILITY RULE
TRADING
VIOLATION OF
CHURNING/
EXCESSIVE TRADING
VIOLATION OF RULES ON
COMMISSIONS &
CHARGES FOR SERVICES
OF BROKER DEALER
FAILURE TO ESTABLISH/
MAINTAIN EFFECTIVE
AND APPROPRIATE
COMPLIANCE FUNCTIONS
FAILURE TO INFORM THE
COMMISSION OF
OCCURRENCES OF
MATERIAL NONCOMPLIANCE WITH LEGAL
REQUIREMENTS , FIRMS
OWN POLICIES AND
PROCEDURES
FAILURE TO REPORT TO
MANAGEMENT ALL
OCCURRENCES OF
MATERIAL NONCOMPLIANCE BY THE
FIRM OR ITS STAFF WITH
LEGAL AND REGULATORY
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
50,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
25,000
50,000
100,000
10,000
30,000
50,000
15,000
25,000
50,000
25,000
50,000
100,000
10,000
30,000
50,000
10,000
30,000
50,000
67
LEGAL BASIS/
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
10,000
30,000
50,000
FAILURE TO COMPLY
WITH RULE ON
MAINTENANCE OF A
LOGBOOK
SRC Rule 30.2-7
FAILURE TO ESTABLISH,
IMPLEMENT TRAINING
PROGRAM
SEC Rule 32.1
PROHIBITION ON
TRADING OF
UNREGISTERED
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET
BD 100,000
AP/S 50,000
BD 150,000
AP/S 75,000
BD 200,000
AP/S 100,000
SRC Rule 32.2 (a)
VIOLATION OF BEST
EXECUTION RULE
BD 50,000
AP/S 25,000
BD 75,000
AP/S 50,000
BD 100,000
AP/S 75,000
SRC Rule 34.1-1
VIOLATION OF
CUSTOMER FIRST POLICY
25,000
50,000
100,000
SRC Rule 34.1-2
VIOLATION OF CHINESE
WALLS POLICY
25,000
50,000
100,000
SRC Rule 48.1
VIOLATION OF MARGIN
REQUIREMENT
RULE
10,000
30,000
50,000
68
LEGAL BASIS/
SRC Rule 49.1-1; SEC MC # 16 S
2004
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
BELOW MINIMUM NET

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
Suspension of Operations
IF RBCA RATIO IS BELOW

1.1
IF AGGREGATE
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
VIOLATION OF NET
CAPITAL RULE AND THE
RBCA RULES
69
LEGAL BASIS/
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
50,000 plus 10,000/day of
violation
SECOND OFFENSE
(Amounts in Pesos)
75,000 plus 15,000/day of
violation
THIRD OFFENSE
(Amounts in Pesos)
100,000 plus 20,000/day of
violation
FAILURE TO COMPUTE
NET RBCA MARGIN AND
RBCA RATIO ON A DAILY
BASIS

violation

violation

violation
FAILURE TO SUBMIT
REPORTS WHICH REFLECT
RBCA RATIO AND RBCA
MARGIN UPON REQUEST

violation

violation

violation
AGGREGATE
INDEBTEDNESS IN EXCESS
OF 1700% OF ITS NLC

violation

violation

violation
CORE EQUITY GREATER

THAN OPERATIONAL RISK
REQUIREMENT IS
BERACHED

violation

violation

violation
NON-COMPLIANCE WITH
THE MINIMUM
UNIMPAIRED PAID-UP
CAPITAL

violation

violation

violation
NON-SUBMISSION OF
CAPITAL BUILD-UP PLAN

violation

violation

violation
FAILURE TO CEASE
OPERATION IF (1)
MINIMUM RBCA RATIO
OF 1.1; OR (2) THE
MINIMUM NLC IS
BREACHED
70
LEGAL BASIS/
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
ERRONEOUS
COMPUTATION OF RBCA
REQUEST
10,000
30,000
50,000
NOT USING THE

REQUIRED FORMAT
10,000
30,000
50,000
SRC Rule 49.1-1(H)
VIOLATION OF
LIMITATION ON
WITHDRAWAL OF EQUITY
CAPITAL
10,000
30,000
50,000
SRC Rule 49.2
VIOLATION OF
CUSTOMER PROTECTION
RESERVES & CUSTODY OF
SECURITIES RULE
10,000
30,000
50,000
SRC Rule 49.2-4
VIOLATION OF SPECIAL
RESERVE BANK ACCOUNT
RULE
10,000
30,000
50,000
SRC Rule 49.3
VIOLATION OF LENDING
AND VOTING CUSTOMERS
SECURITIES RULE
10,000
30,000
50,000
AND/OR FAILURE TO
EFFECT PROPOSAL
(MEASURES TO BE TAKEN)
WITHIN 10 DAYS
71
LEGAL BASIS/
SRC Rule 50
SRC Rule 52.1-1
SRC Rule 52.1-2
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
NOT CURRENT

violation

violation
50,000
Plus 500/day of violation
NOT AVAILABLE
Immediate Suspension
VIOLATION OF
PURCHASES AND SALES
ACCOUNT RULE
VIOLATION OF BOOKS
AND RECORDS RULE
VIOLATION OF RECORDS
AND RETENTION RULE
PRESERVATION FOR 5 YRS
ACCESSIBLE FOR 2 YRS
10,000
10,000
30,000
30,000
50,000
50,000
CEASED OPERATION
10,000
30,000
50,000
SRC Rule 52.1-4
REPORT OF EXCHANGE
MEMBERS, BROKERS,
DEALERS TRADING
THROUGH MEMBERS
10,000
30,000
50,000
SRC Rule 52.1-6
VIOLATION OF
CUSTOMER ACCOUNT
INFORMATION RULE
10,000
30,000
50,000
SRC Rule 52.1-7
VIOLATION OF ORDER
TICKET RULE
10,000
30,000
50,000
72
LEGAL BASIS/
SRC Rule 52.1-8
SRC Rule 52.1-9
SRC Rule 52.1-10

ACCREDITATION
OF EXTERNAL AUDITOR

Philippines (CCP)
CORPORATION
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
FAILURE TO SEND
CUSTOMER ACCOUNT
STATEMENT MONTHLY
10,000
30,000
50,000
VIOLATION OF
CUSTOMER COMPLAINT
RULE
10,000
30,000
50,000
FAILURE TO PRESERVE
SEPARATE FILE OF
COMPLAINTS RECEIVED
AND ACTION TAKEN
VIOLATION OF THE
MONTHLY SECURITIES
COUNT BY BROKER,
DEALER RULE
SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION
10,000
30,000
50,000
10,000
30,000
50,000
50,000
100,000
200,000

of this Scale)

of this Scale)

of this Scale)
VIOLATION OF RULE ON
CUSTOMER ACCOUNT
STATEMENTS
CCP
73
9.4. ADDITIONAL REQUIREMENTS FOR OTC PARTICIPANTS (SEC MEMORANDUM CIRCULAR NO. 14, SERIES OF 2006 OR
OTC RULES)
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
PROHIBITION FROM
MAKING, CREATING OR
OPERATING AN OTC
MARKET NOT IN
ACCORDANCE WITH THE
RULES.
BD minimum of 100,000
S/AP minimum of 50,000
OP minimum of 10,000
REGISTRATION OF BROKER,
DEALER, SALESMAN AND
ASSOCIATED PERSON OF
BROKER OR DEALER IN AN OTC
MARKET
MAKING, CREATING OR
OPERATING AN OTC
MARKET WITHOUT BEING
REGISTERED AS BROKER,
DEALER OR SALESMAN OF
BROKER OR DEALER IN
AN OTC MARKET.
OP min
mum of 25,000
ACTING AS A BROKER, DEALER,

SALESMAN OR AN ASSOCIATED
PERSON OF BROKER OR DEALER
WITHOUT BEING REGISTERED
AS SUCH PURSUANT SECTION
28 OF THE SRC
ENABLING ANOTHER
PERSON TO MAKE,
CREATE OR OPERATE AN
OTC MARKET WHERE
SAID PERSON IS NOT
AUTHORIZED TO ACT AS
BROKER, DEALER OR
Section 3 of the
OTC Rules
MAKING, CREATING OR
OPERATING AN OTC MARKET
Section 4 of the OTC Rules
74
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SALESMAN IN AN OTC
MARKET.
BROKERS OR DEALERS
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.
REGISTRATION OF A
GROUP OF PERSONS TO
OPERATE AN OTC
ACTING IN CONCERT IN
MAKING, CREATING OR
OPERATING AN OTC
MARKET WITHOUT
FORMING AND CAUSING
THE REGISTRATION OF AN
ASSOCIATION OF
75
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
B/D - P100,000
B/D - P150,000
B/D - P200,000
AP/SP P50,000
AP/SP P75,000
AP/SP P100,000
BROKERS AND/OR
DEALERS PURSUANT TO
SECTION 39 OF THE SRC
MEMBERSHIP IN AN SRO
VIOLATIONS AGAINST
THE REQUIREMENT THAT
NO BROKER OR DEALER
SHALL PARTICIPATE IN AN
OTC MARKET UNLESS HE
IS A MEMBER OF AN SRO
ELIGIBLE INVESTORS IN
AN OTC MARKET
VIOLATION AGAINST THE
REQUIREMENT THAT A
NON-QUALIFIED
INVESTOR SHALL NOT
PARTICIPATE IN AN OTC
MARKET
SRC Rule 32.1
PROHIBITION ON
TRADING OF
UNREGISTERED
SECURITIES OR IN
UNREGISTERED
EXCHANGE/MARKET
76
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
ELIGIBLE SECURITIES IN
AN OTC MARKET
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
VIOLATION AGAINST THE

RULES ON ELIGIBLE
SECURITIES IN AN OTC
SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM
VIOLATION OF THE
REQUIREMENTS FOR
SUBMISSION OF
INFORMATION RELATIVE
TO THE QUOTATION
SYSTEM
Sections 11, 12, 13 of the OTC

Rules
OPERATION OF A
QUOTATION SYSTEM
VIOLATIONS IN THE
OPERATION OF A
QUOTATION SYSTEM BY
A DEALER, BROKER, OR
BY A GROUP OF BROKERS
AND/OR DEALERS
77
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
INTEGRATION OF THE
QUOTATION SYSTEMS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO COMPLY
WITH ORDER FOR
ELECTRONIC
INTEGRATION
FAILURE TO COMPLY
WITH ORDER TO PROVIDE
THE COMMISSION WITH
ACCESS AND LINKAGE
REQUIRED INFORMATION
BEFORE INITIATION OR
RESUMPTION OF
QUOTATIONS
FAILURE TO MAINTAIN
REQUIRED INFORMATION
BEFORE INITIATION OR
RESUMPTION OF
QUOTATIONS.
TRADE REPORTING
OBLIGATIONS
FAILURE TO COMPLY
WITH TRADE REPORTING
OBLIGATIONS AS
PRESCRIBED BY THE
RULES.
78
LEGAL BASIS/
SUBJECT MATTER
VIOLATION
APPROVAL OF A CENTRAL
TRADE REPORTING
SYSTEM
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
OPERATING OR
PROVIDING A CENTRAL
TRADE REPORTING
SYSTEM WITHOUT THE
PRIOR APPROVAL OF THE
COMMISSION.
CAPITAL ADEQUACY
REQUIREMENTS AND
REPORTS
FAILURE TO MEET
CAPITAL ADEQUACY
REQUIREMENTS AND TO
SUBMIT REPORTS.
COMMISSIONS, CHARGES
AND FEES
In case of breach by a bank,

the Commission shall impose
the corresponding sanctions
being enforced on broker or
dealer as if the violation is a
breach of SRC Rules on RBCA
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.
VIOLATIONS IN
CHARGING
COMMISSIONS AND FEES
IN OTC TRANSACTIONS.
79
LEGAL BASIS/
SUBJECT MATTER

UNLAWFUL ACTS

DISPUTE RESOLUTION
VIOLATION
CLEARING AND
SETTLEMENT
VIOLATIONS IN CLEARING
AND SETTLEMENT OF OTC
TRANSACTIONS.
ENGAGING IN UNLAWFUL
ACTS AS ENUMERATED IN
THE OTC RULES.
OTHER PROHIBITED ACTS
ENGAGING IN OTHER
PROHIBITED ACTS AS
ENUMERATED IN THE OTC
RULES
FAILURE TO COMPLY
WITH THE REQUIREMENT
THAT PARTICIPANTS IN
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
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
80
(10) INVESTMENT HOUSES/UNDERWRITER OF SECURITIES

LEGAL BASIS
VIOLATION
Section 3.E of the Omnibus

Rules
VIOLATION OF THE RULE

ON USE OF THE TERM
INVESTMENT
ADVERTISING OR HOLDING
ITSELF OUT AS BEING
ENGAGED IN THE
BUSINESS OF AN
IH/UNDERWRITER OF
SECURITIES WITHOUT A
LICENSE
Section 3.F of the Omnibus

Rules
FAILURE TO SECURE A
LICENSE TO OPERATE A
BRANCH
FIRST OFFENSE
(Amounts in Pesos)
Fine not exceeding 200.00
per day for every day during
which such violation or noncompliance continues
(Section 16 of the IH Law)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)



81
Section 4 of the Omnibus Rules

ON UNDERWRITING
REQUIREMENTS



FIRST OFFENSE
(Amounts in Pesos)
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
whichever is higher
10,000 or 1/10 of 1% of the

whichever is higher
20,000 or 1/20 of 1% of the

whichever is higher
30,000 or 1/30 of 1% of the

whichever is higher
OF SRC RULE 68
10,000
20,000
30,000



FAILURE TO SECURE
APPROVAL OF
UNDERWRITING
AGREEMENT
NON-SUBMISSION OF
DULY NOTARIZED AND
EXECUTED COPY OF UA

LEGAL BASIS/
SUBJECT REPORT
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS
Section 14.B of the Omnibus

Rules; Section 16 of the
Investment Houses Law
VIOLATION
MATERIAL DEFICIENCY
SEC FORM IH-14 AR
(ANNUAL REPORT)
82
LEGAL BASIS/
SUBJECT REPORT
SEC Form IH-14 AR
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)






FAILURE TO USE FORM

PRESCRIBED BY THE
COMMISSION
OTHER VIOLATIONS
RELATING TO SEC FORM
IH-14 AR
Section 14.A of the Omnibus

Rules and Regulations for
Investment Houses and
Universal Banks Registered as
Underwriters of Securities
(Omnibus Rules);
Houses Law
SEC Form IH-14

Rules;
Houses Law
SEC FORM IH-14 (QPRQUARTERLY PROGRESS
REPORTS WITH ATTACHED
QUARTERLY FINANCIAL
STATEMENTS)
FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION
OTHER VIOLATIONS
IH-14
OTHER VIOLATIONS
RELATING TO THE
QUARTERLY FINANCIAL
STATEMENTS
SEC FORM IHU-A
FAILURE TO USE FORM
PRESCRIBED BY THE
COMMISSION
83
LEGAL BASIS/
SUBJECT REPORT
SEC Form IHU-A
SRC Rule 49.1-1

SEC Memorandum Circular No.
16 series of 2004
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
25,000
50,000
100,000
OTHER VIOLATIONS
IHU-A
LATE FILING OF RBCA
REPORT INCLUDING
DECLARATION SHEET,
SUPPORTING
DOCUMENTS AND NOT
USING THE REQUIRED
FORMAT.
SRC Rule 49.1-1
FAILURE TO SUBMIT RBCA

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

SEC Form BD 30.2 QCR
84
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 28.1-4 (H)
SEC Form 28-AMD
VIOLATION
CHANGE IN INFORMATION
IN SEC FORM 28-S AND SEC
FORM 28-AP
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
LATE-FILING

STATEMENTS
NON-FILING
1,000
2,000
4,000

Total fine plus

computed
Total fine plus

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
Total fine plus

computed
Total fine plus

Computed

Section 141 of CCP

STATEMENTS
LATE FILING
NON-FILING
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
LEGAL BASIS/
SUBJECT REPORT
amended
VIOLATION
LATE-FILING
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus
100 daily
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
n/a
n/a
25,000
n/a
n/a
MANUAL
NON-FILING

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000

penalty
Suspension of CA

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
SECRETARY ON THE
ATTENDANCE OF DIRECTORS
TO MEETING
NON-FILING
25,000
30,000
Suspension of CA

Governance
COMPLIANCE OFFICERS ON
THE EXTENT OF COMPLIANCE
WITH MANUAL ON
CORPORATE GOVERNANCE
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
25,000
30,000
Suspension of CA
86
LEGAL BASIS/
SUBJECT REPORT
VIOLATION
SECOND OFFENSE
(Amounts in Pesos)
20,000
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)



RULE ON DUE DILIGENCE
FAILURE TO EXERCISE DUE

DILIGENCE
INVESTIGATIONS OF ALL
MATTERS RELATING TO
THE ISSUER AND THE ISSUE
Section 8 of the Omnibus Rules;

Houses Law

THE DISTRIBUTION
REQUIREMENTS



NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
10,000
OTHER REQUIREMENTS,
GOVERNANCE

LEGAL BASIS/
Section 3.A.vi of the Omnibus

Houses Law
VIOLATION
VIOLATION OF
INTERLOCKING DIRECTORS
AND OFFICERS
RULE ON INITIAL PUBLIC

OFFERING DISTRIBUTION
PROCESS
87
LEGAL BASIS/
Houses Law
RULE ON MANAGEMENT OF
FUNDS
VIOLATION
FAILURE TO ENSURE THAT
THE INTEREST OF THE
FUNDS MANAGED IS
PROMOTED AND THAT THE
OPERATION OF THE FUNDS
IS UNDERTAKEN ON AN
ARMS LENGTH BASIS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section 10 of the Omnibus

Rules
RULE ON UNDERWRITING FEES
COLLECTION OF
UNDERWRITING FEES IN
EXCESS OF 5% OF THE
AMOUNT GENERATED BY
THE UNDERWRITER FOR
THE ISSUER



Section 11. A of the Omnibus

UNDERWRITING
COMMITMENT
UNDERTAKEN IN AN
AMOUNT EXCEEDING
TWENTY (20) TIMES ITS
NETWORTH



Any or all of the following

sanctions may be imposed by
the Commission on any
Investment House which fails
to comply with the capital
requirement or having
complied, shall fail to
maintain thereafter such
capital requirement, to wit:

sanctions may be imposed
by the Commission on any
Investment House which
fails to comply with the
capital requirement or
having complied, shall fail to

sanctions may be imposed
by the Commission on any
Investment House which
fails to comply with the
capital requirement or
having complied, shall fail to
RULE ON UNDERWRITING
COMMITMENT
Section 11. B of the Omnibus
Rules

ON THE MINIMUM
CAPITALIZATION AND/OR
UNIMPAIRED CAPITAL AND
SURPLUS
88
LEGAL BASIS/
VIOLATION
i.
ii.
iii.
iv.
v.
Section 11.C of the Omnibus

NON-COMPLIANCE WITH
WHENEVER AN IH IS
ENGAGED IN THE
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
FIRST OFFENSE
(Amounts in Pesos)
Cease and desist order;
Prohibition from
underwriting;
Prohibition from
extending new loans or
making new investments;
Suspension of the privilege
to establish and/or open
approved branches,
agencies or offices; and/or
Other sanctions prescribed
under existing pertinent
laws, rules and regulations

SECOND OFFENSE
(Amounts in Pesos)
i. Cease and desist order;
ii. Prohibition from
underwriting;
iii. Prohibition from
iv. Suspension of the
privilege to establish
and/or open approved
branches, agencies or
offices; and/or
v. Other sanctions
prescribed under existing
pertinent laws, rules and
regulations
i.
ii.
iii.
iv.
v.
THIRD OFFENSE
(Amounts in Pesos)
Cease and desist order;
Prohibition from
underwriting;
Prohibition from
Suspension of the
privilege to establish
and/or open approved
branches, agencies or
offices; and/or
Other sanctions
prescribed under existing
pertinent laws, rules and
regulations

89
LEGAL BASIS/

FEE-BASED INCOME
REQUIREMENT

CAPITAL ADEQUACY
REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO DERIVE AT
LEAST 25% OF ITS
ANNUAL GROSS INCOME
FROM UNDERWRITING &
OTHER FEE-BASED
ACTIVITIES.




CAPITAL ADEQUACY
REQUIREMENTS
SINGLE BORROWERS
LIMIT (SBL)
NETWORTH TO RISKASSETS RATIO



NON-COMPLIANCE WITH
THERE SHALL BE NO
ADVANCES TO DIRECTORS,
OFFICERS AND
STOCKHOLDERS OWNING
AT LEAST 10% OF THE
OUTSTANDING CAPITAL OF
AN IH SHALL BE ALLOWED ,
UNLESS SUFFICIENTLY
COLLATERALIZED, AS
REQUIRED BY BSP
90
LEGAL BASIS/
BOOKS AND RECORDS RULE
VIOLATION
FAILURE TO MAINTAIN
AND PRESERVE RECORDS
OF ALL TRANSACTIONS
AND OTHER DOCUMENTS
FOR FIVE (5) YEARS FROM
THE DATES OF THE
TRANSACTIONS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)


100,000
200,000
FAILURE TO PRESERVE AND

STORE RECORDS OF ALL
TRANSACTIONS AND
OTHER DOCUMENTS FOR
FIVE (5) YEARS FROM THE
DATES WHEN THEY WERE
CLOSED
RULE ON STOCKBROKERAGE
OR DEALERSHIP FUNCTIONS
ACCREDITATION
OF EXTERNAL AUDITOR
FAILURE TO DISCLOSE TO
THE COMMISSION THAT
THEY ARE ENGAGED IN THE
BUSINESS OF DEALING IN
GOVERNMENT SECURITIES.

AUDITOR WITHOUT A
GROUP B ACREDITATION

50,000
91
LEGAL BASIS/
Philippines (CCP)
VIOLATION
CCP
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

of this Scale)

of this Scale)

of this Scale)

CORPORATION
(11) SELF REGULATORY ORGANIZATIONS, EXCHANGES

LEGAL BASIS
Section 32
VIOLATION
VIOLATION OF THE
PROHIBITION ON THE USE
OF UNREGISTERED
EXCHANGE; FAILURE TO
RENEW LICENSE
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
200,000
THIRD OFFENSE
(Amounts in Pesos)
300,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

and issued and outstanding
shares or 50,000, whichever is
higher

total issued and outstanding
shares or 100,000,
whichever is higher
plus

shares or 200,000,
whichever is higher
plus

LEGAL BASIS/
SUJBECT REPORT
AUDITED FINANCIAL
STATEMENTS
VIOLATION
LATE-FILING
92
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
NON-FILING

SRC Rule 68
AUDITED FINANCIAL
STATEMENTS
MATERIAL DEFICIENCY
OF SRC RULE 68
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

issued and outstanding shares
or 200,000, whichever is
higher

shares or 300,000,
whichever is higher

shares or 400,000,
whichever is higher

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
10,000
20,000
30,000
LATE FILING

STATEMENTS
NON-FILING
1,000
2,000
4,000
20,000 basic penalty

Plus500/day of delay

1,000/day of delay
50,000 Plus 1,500/day

of delay
SRC Rule 39.1.1(f)
STATEMENTS
LATE FILING OR NONFILING
AUDIT CALENDAR (on or before

the 15th of January of every
year or notify the Commission
of any amendment thereto)
93
LEGAL BASIS/
SUJBECT REPORT
SRC Rule 39.1.1 (f)
MONTHLY REPORT OF
PERIODIC EXAMINATIONS
(within ten (10) days after the
end of each month)
SRC Rule 30.2.8
SRC Rule 39.1.1(E)
SRC Rule 39.1.1(j)
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)


Plus 1,000/day of delay
50,000
BLOCK SALE REPORT
50,000
75,000
100,000
CEILING/FLOOR ALERTS*
50,000
75,000
100,000
50,000
75,000
100,000




Total fine plus

computed
Total fine plus

Computed
LATE OR NON-FILING
*This should be filed with

the Enforcement and
Investors Protection
Department
FAILURE OF SRO TO FILE
REQUIRED REPORT
SRC Rule 39.1.2(c)
FAILURE TO AMEND SEC

FORM 39

LATE FILING
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
LEGAL BASIS/
SUJBECT REPORT
Section 141 of CCP
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

Total fine plus

computed
Total fine plus

Computed
10,000 plus
100 daily
n/a
n/a
25,000
n/a
n/a
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING

penalty
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
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
amended
MANUAL

Governance
MANUAL ON CORPORATE
GOVERNANCE

Governance
LATE-FILING
NON-FILING
95
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SECRETARY ON THE
TO MEETING
NON-FILING

penalty
Suspension of CA

Governance
WITH MANUAL ON
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
25,000
30,000
Suspension of CA

NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
10,000
20,000
Suspension of CA
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
100,000
200,000
300,000
OTHER REQUIREMENTS,
GOVERNANCE
11.3. OPERATIONAL PRUDENTIAL AND OTHER REQUIREMENTS

LEGAL BASIS
SRC Rule 33.2 (c)
VIOLATION
NON-COMPLIANT AS TO
COMPOSITION OF THE
BOARD OF AN EXCHANGE
96
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 33.2 (c)

THE OWNERSHIP
REQUIREMENT
100,000 basic penalty plus

P100/day of delay

P100/day of delay
200,000 basic penaly plus

P100/day of delay
SRC Rule 33.2 (d)
FAILURE OF AN EXCHANGE
TO PROTECT CUSTOMER
ACCOUNTS IN CASE OF
BUSINESS FAILURE

P100/day of delay

P100/day of delay
200,000 basic penaly plus

P100/day of delay
SRC Rule 39.1.1(d)
FAILURE TO SUPERVISE
LISTED COMPANIES
50,000
75,000
100,000
SRC Rule 39.1.1(e)

REQUIREMENTS ON
COMPLIANCE AND
SURVEILLANCE
50,000
75,000
100,000
SRC Rule 39.1.1(g)
FAILURE TO INVESTIGATE
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
50,000
75,000
100,000
97
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
COMMISSION AND TAKE

DISCIPLINARY ACTION,
WHERE APPROPRIATE,
PURSUANT TO SRO RULES
SRC Rule 39.1-1 (F)
FAILURE OF SRO TO SEND

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

(G-ii)
FAILURE OF SRO TO
INVESTIGATE VIOLATION
OF RULES ON SALES
PRACTICES, ETC
50,000
75,000
100,000
SRC Rule 39.1-1 (G-iii)
FAILURE OF SRO TO
NOTIFY THE COMMISSION
OF INVESTIGATION OF SRC
SECTIONS 24,26,27
FAILURE TO DISCIPLINE A
MEMBER, INCLUDING
SUSPENSION OR
EXPULSION OF A MEMBER,
IF SUCH PERSON HAS BEEN
FOUND TO HAVE BEEN
10,000
30,000
50,000
50,000
75,000
100,000
SRC Rule 39.1-1 (G-i)
SRC Rule 39.1.1(h)/SRC Rule

40.6
98
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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)

DISCIPLINARY ACTION OF
THE COMMISSION
50,000
75,000
100,000
SRC Rule 39.1.2(b)
AN SRO
100,000
200,000
300,000
SRC Rule 39.1.2(f)
FAILURE OF SRO TO SEND

TO THE COMMISSION
COPIES OF ANY NOTICES,
REPORTS OR RECORDS OF
CHANGES COVERED BY
AMENDMENTS
RULES ON ALLOCATION OF
REGULATORY
RESPONSIBILITIES AMONG
SROS




500/day of delay

1,000/day of delay
50,000 Plus 1,500/day of

delay
SRC Rule 39.1.3
99
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
SRC Rule 40.2
FAILURE OF SRO TO
COMPLY WITH SRC
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,
REGISTERED EXCHANGE
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
SUBMIT PROPOSED RULE
OR AMENDMENT THERETO
OR TO OBSERVE
PROCEDURE ON RULE
MAKING
FAILURE OF SRO,
REGISTERED EXCHANGE
OR TRADING PARTICIPANT
AND ANY REGISTERED
CLEARING AGENCY TO
COMPLY WITH THE






SRC Rule 40.4
100
LEGAL BASIS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
COMMISSIONS ORDER TO
EFFECT CHANGES IN ITS
RULE/PRACTICE
SRC Rule 40.7
FAILURE OF SRO TO
NOTIFY THE COMMISSION
OF ANY DISCIPLINARY
SANCTION OF ANY
MEMBER



SRC Rule 52.1-3
VIOLATION OF RULE ON
KEEPING OF EXCHANGE
RECORDS




AUDITOR WITHOUT A
GROUP B ACREDITATION
50,000
100,000
200,000

of this Scale)

of this Scale)

of this Scale)
ACCREDITATION
OF EXTERNAL AUDITOR

Philippines (CCP)
CORPORATION
CCP
101
(12) CLEARING AGENCIES

LEGAL BASIS
VIOLATION
SRC Rule Section 41
PROHIBITION ON THE USE

OF UNREGISTERED
CLEARING AGENCY
SRC Rule 42.1(a)
CLEARING AGENCY
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
200,000
THIRD OFFENSE
(Amounts in Pesos)
300,000
100,000
200,000
300,000

LEGAL BASIS/
SUJBECT REPORT
SRC Rule 42.1(e)
AUDITED FINANCIAL
STATEMENTS
SEC Form 42-FS
SRC Rule 68
AUDITED FINANCIAL
STATEMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)



MATERIAL DEFICIENCY


30,000 per AFS or 3,000

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
is higher1
ANNUAL AUDITED
FINANCIAL STATEMENTS
102
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
OF SRC RULE 68
10,000
20,000
30,000
LATE FILING

STATEMENTS
NON-FILING
STATEMENTS
1,000
2,000
4,000
FAILURE TO FILE
AMENDMENT FORM FOR
CLEARING AGENCIES




Total fine plus

Total fine plus

Computed
SRC Rule 42.1(d)

SEC Form 42-CA
LATE FILING
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
LEGAL BASIS/
SUJBECT REPORT
Section 141 of CCP
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

Total fine plus

computed
Total fine plus

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
Governance
MANUAL ON CORPORATE
GOVERNANCE

Governance
SECRETARY ON THE
TO MEETING
Governance
LATE-FILING
10,000 plus
100 daily
n/a
n/a
NON-FILING
25,000
n/a
n/a
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
NON-FILING
25,000
30,000
Suspension of CA
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
104
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
WITH MANUAL ON
NON-FILING

OTHER REQUIREMENTS,
GOVERNANCE
NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
25,000
30,000
Suspension of CA
10,000
20,000
Suspension of CA

LEGAL BASIS/
SUJBECT REQUIREMENT
SRC Rule 42.1(b)
SRC Rule 42.2

ACCREDITATION
OF EXTERNAL AUDITOR
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE OF A CLEARING
AGENCY TO PAY THE
PRESCRIBED ANNUAL FEE
FAILURE TO REPORT DAILY
BREACHES OF RULES OR
DIFFICULTIES BY
PARTICIPANT
50,000basic penalty






AUDITOR WITH A GROUP
B ACCREDITATION
50,000
100,000
200,000
105
LEGAL BASIS/
SUJBECT REQUIREMENT

Philippines (CCP)
CORPORATION
VIOLATION
CCP
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

of this Scale)

of this Scale)

of this Scale)
(13) ALTERNATIVE TRADING SYSTEMS

LEGAL BASIS
Section 37 of the SRC; Section II of
the ATS Rules
VIOLATION
VIOLATION OF
REGISTRATION
REQUIREMENT OF ATS
FIRST OFFENSE
(Amounts in Pesos)
100,000
SECOND OFFENSE
(Amounts in Pesos)
150,000
THIRD OFFENSE
(Amounts in Pesos)
200,000
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

and issued and outstanding
shares or 50,000, whichever is
higher

plus

total issued and
outstanding shares or
200,000, whichever is
higher

LEGAL BASIS/
SUJBECT REPORT
SRC Rule 68
VIOLATION
LATE-FILING
106
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
plus
NON-FILING

SRC Rule 68

or 200,000, whichever is
higher

MATERIAL DEFICIENCY


MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
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
is higher1
10,000
20,000
30,000

REQUIREMENTS OF SRC
RULE 68

total issued and
outstanding shares or
400,000, whichever is
higher
Plus 1,000 per day of
delay
30,000 per AFS or 3,000
LATE FILING

STATEMENTS
NON-FILING
1,000
2,000
4,000
STATEMENTS
107
LEGAL BASIS/
SUJBECT REPORT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Section G(1), Rules and Regulations

on ATS
LATE FILING OR NONFILING OF THE REPORTS
10,000 basic fine

10,000 basic fine

10,000 basic fine

FIRST OFFENSE
(Amounts in Pesos)
10,000 basic fine
plus 1,000/day of delay
SECOND OFFENSE
(Amounts in Pesos)
10,000 basic fine
THIRD OFFENSE
(Amounts in Pesos)
10,000 basic fine
ATS Form 2
ATS Form 2-A ATS Form 3
ATS Form 4
ATS Form 5
ATS Form 6

LEGAL BASIS/
REQUIREMENT
VIOLATION

on ATS
Late Amendment or NonAmendment of

Registration Statement

on ATS
Late or Non-Approval of
Investors
Training Program
Violation of any provision
of the Rules and
Regulations on ATS
10,000 basic fine

10,000 basic fine

10,000 basic fine

50,000 per violation
100,000 per violation
200,000 per violation and

cancellation of
registration

SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
50,000
100,000
200,000

on ATS

ACCREDITATION
OF EXTERNAL AUDITOR
108
LEGAL BASIS/
REQUIREMENT
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

of this Scale)

of this Scale)

of this Scale)
ACREDITATION
Philippines (CCP)
CCP

CORPORATION
(14) TRANSFER AGENTS

LEGAL BASIS/SUBJECT REPORT
SRC Rule 36-4.1
(SEC Form 36-TA)
VIOLATION
TRANSFER AGENT
FIRST OFFENSE
(Amounts in Pesos)
50,000
SECOND OFFENSE
(Amounts in Pesos)
75,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
10,000
30,000
50,000

LEGAL BASIS/
SUBJECT REPORT
SRC Rule 36.4.2(a)
ANNUAL REPORT
SEC Form 36-AR
SRC Rule 36.4.2(a)
VIOLATION
LATEOR NON-FILING
FILING OF ANNUAL
REPORT
ANNUAL AUDITED
FINANCIAL STATEMENTS
109
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 68
VIOLATION
MATERIAL DEFICIENCY
FIRST OFFENSE
(Amounts in Pesos)
whichever is higher
SECOND OFFENSE
(Amounts in Pesos)
whichever is higher
THIRD OFFENSE
(Amounts in Pesos)
40,000 per AFS or 3,000
whichever is higher
MATERIAL
MISSTATEMENT OR
MISREPRESENTATION
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 amount of
is higher1
10,000
20,000
30,000

REQUIREMENTS OF SRC
RULE 68
LATE-FILING

STATEMENTS
NON-FILING
1,000
2,000
4,000

Total fine plus

Total fine plus

Computed
MATERIAL DEFICIENCY
OR MATERIAL
DISCREPANCY WITH
ANNUAL FINANCIAL
STATEMENTS
LATE FILING
Up to P100,000: 500
110
LEGAL BASIS/
SUBJECT REPORT
Section 141 of CCP

VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
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
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)

Total fine plus

computed
Total fine plus

Computed
n/a
n/a
n/a
Suspension of CA
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
amended
LATE-FILING
10,000 plus
100 daily
MANUAL
Governance
NON-FILING
LATE-FILING
10,000 plus
100 daily
n/a
20,000 plus
100 daily
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
30,000
Suspension of CA

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
111
LEGAL BASIS/
SUBJECT REPORT
CERTIFICATION BY THE SECRETARY
ON THE ATTENDANCE OF
DIRECTORS TO MEETING
VIOLATION
NON-FILING
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
Suspension of CA

Governance
LATE-FILING
10,000 plus
100 daily
20,000 plus
100 daily
Suspension of CA
MANUAL ON CORPORATE
GOVERNANCE
NON-FILING
25,000
30,000
Suspension of CA

NON-COMPLIANCE WITH
ANY OF THE
REQUIREMENTS
10,000
20,000
Suspension of CA
10,000
30,000

delay



OTHER REQUIREMENTS,
OTHER REPRESENTATIONS IN THE
MANUAL OF CORPORATE
GOVERNANCE
SRC Rule 36.4.1(d)
SRC Rule 36.4.2(b)
FAILURE TO REPORT
AMENDMENTS TO SEC
FORM 36-TA
FAILURE TO TIMELY
SUBMIT REPORT
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
LEGAL BASIS/
SUBJECT REPORT
SRC Rule 36-4.2(e)
VIOLATION
FAILURE TO SUBMIT
OTHER REPORTS
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000
FIRST OFFENSE
(Amounts in Pesos)
10,000
SECOND OFFENSE
(Amounts in Pesos)
30,000
THIRD OFFENSE
(Amounts in Pesos)
50,000

LEGAL BASIS/
SRC Rule 36-4.2(c)
VIOLATION
FAILURE TO COMPLY
WITH PERIODIC
REPORTING TO ISSUER
REQUIREMENT
SRC Rule 36-4.2(d)
FAILURE TO MAINTAIN A
COMPLAINT LOG
10,000
30,000
50,000
SRC Rule 364.3
FAILURE TO MAINTAIN
REQUIRED RECORDS
10,000
30,000
50,000

SERVICES OF AN
EXTERNAL AUDITOR
WITHOUT A GROUP B
ACREDITATION
25,000
50,000
100,000

of this Scale)

of this Scale)

of this Scale)
ACCREDITATION
OF EXTERNAL AUDITOR

Philippines (CCP)
CCP

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

100,000.00
Salesman: 150,000.00
Individual/Corporation/Broker Individual/Corporation/Broker
Dealer of Securities:
100,000.00 + 100% of the
losses avoided
avoided
Salesman: 75,000.00
Sec. 27, SRC
Insiders Trading

100,000.00
Individual/Corporation/Broker Individual/Corporation/Broker
Dealer of Securities:
100,000.00 + 100% of the
losses avoided
avoided
Salesman: 75,000.00

100,000.00
200,000.00 + 100% of the
avoided
200,000.00 + 300% of the
avoided
114
LEGAL BASIS/
REQUIREMENTS
Sec. 54 & 68, SRC
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
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
licensees and their
significant subsidiaries,
that have adopted the fair
value model in measuring
their properties pursuant
to Philippine Financial
Reporting Standards, to
engage the services of an
SEC-accredited appraisal
company
1/100 of 1% of the fair value 1/100 of 1% of the fair value of

of the property recorded in
the property recorded in the
the financial statements
financial statements without the
without the required
required valuation of an
valuation of an accredited
accredited appraisal company
appraisal company
1/100 of 1% of the fair

value of the property
recorded in the financial
statements without the
required valuation of an
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
LEGAL BASIS
Section 68 of SRC;
SRC Rule 68
VIOLATION
Acceptance by an external
auditor or firm of an audit
of financial statements of
a covered corporation
without prior
accreditation as an
external auditor and/or
audit firm with the
appropriate category of
accreditation (Group A, B,
or C)
FIRST OFFENSE
(Amounts in Pesos)
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
(1) Group A: 100,000
Group B: 50,000
Group C: 20,000
THIRD OFFENSE
(Amounts in Pesos)
-
(2) Referral to EPD for

appropriate
investigation;
and
(3) Referral to the Board of
Accountancy for
appropriate proceedings
on the revocation of
accreditation or other
action.
116

LEGAL BASIS/
REPORT
SRC Rule 68, as amended
VIOLATION
FAILURE TO TIMELY
SUBMIT THE REPORT
REPORT ON DISAGREEMENTS WITH

CLIENTS; FINDINGS OF MATERIAL
FRAUD, ERROR, SIGNIFICANT
LOSSES OR WEAKNESS IN
INTERNAL CONTROLS
FIRST OFFENSE
(Amounts in Pesos)
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
Group A: 100,000 and
suspension of accreditation
THIRD OFFENSE
(Amounts in Pesos)
removal of accreditation
Group B: 50,000
and suspension of
accreditation
Group B: 100,000
and removal of accreditation
Group C: 20,000
and suspension of
accreditation
FAILURE TO TIMELY FILE

THE REPORT
REPORT ON MATERIAL CHANGES IN

THE FIRMS OR THE ACCOUNTING
OFFICE STRUCTURE,
COMPOSITION, QUALITY
CONTROLS
Group A: 25,000
Group B: 10,000
Group C: 5,000
Group A: 50,000
Group B: 20,000
Group C: 10,000
Group C: 40,000

Group B: 40,000 and
Group C: 20,000 and
16.3. OPERATIONAL, INDEPENDENCE AND OTHER REQUIREMENTS

LEGAL BASIS/
REQUIREMENTS
COMPLIANCE WITH AUDITING
STANDARDS, CODE OF ETHICS AND
OTHER REQUIREMENTS UNDER
VIOLATION
prescribed auditing
standards, as maybe
shown by the findings on
the financial statements
FIRST OFFENSE
(Amounts in Pesos)
50% of the amount imposable
on the corporate client whose
audited financial statements
are materially deficient or
misstated
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
Group B: 50,000
and suspension of
Group B: 100,000
117
LEGAL BASIS/
REQUIREMENTS
THE SEC RULES
VIOLATION
audited by the
accredited external
auditor or such other
findings as maybe
established
the Code of Ethics for
Professional Accountants
including independence
requirements
FIRST OFFENSE
(Amounts in Pesos)
If impact of non-compliance is
not quantifiable:
Group A: 50,000
Group B: 25,000
Group C: 10,000
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
accreditation
Group C: 20,000
and suspension of
accreditation
THIRD OFFENSE
(Amounts in Pesos)
Group C: 40,000


Group B: 50,000
and suspension of
accreditation
Group B: 100,000
Group C: 20,000
and suspension of
accreditation
Failure to allow the
conduct of Quality
Assurance Review (QAR)
or to provide requested
records and documents
during the QAR
Group A: 50,000
Group B: 25,000
Group C: 10,000
Plus PhP 100 daily fine until
compliance
Group A: 50,000
Group B: 25,000
Group C: 10,000
compliance
Failure to timely pay the

prescribed annual fee
Daily fine of PhP 100
Daily fine of PhP 500
Failure to adopt and

implement quality
control standards in the
conduct of audit
Group A: 50,000
Group B: 25,000
Group C: 10,000
Group C: 40,000
Group A: 50,000
Group B: 25,000
Group C: 10,000
compliance
Daily fine of PhP 1,000


Group B: 50,000
and suspension of
accreditation
Group B: 100,000
118
LEGAL BASIS/
REQUIREMENTS
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)

other requirements of
and other Guidelines
issued by the
Commission
Group A: 50,000
Group B: 25,000
Group C: 10,000
SECOND OFFENSE
(Amounts in Pesos)
Group C: 20,000
and suspension of
accreditation
Group A: 50,000
Group B: 20,000
Group C: 10,000
THIRD OFFENSE
(Amounts in Pesos)
Group C: 40,000

Group B: 50,000
and suspension of
accreditation
Group C: 20,000
and suspension of
accreditation
17. CREDIT RATING AGENCIES

17.1.
ACCREDITATION REQUIREMENT
LEGAL BASIS/
REQUIREMENT
Sections 12.1 and 54 of SRC; SRC
Rule 12.1;
REGISTRANTS OF DEBT SECURITIES
MUST BE RATED BY AN
ACCREDITED CREDIT RATING
AGENCY
VIOLATION
THE CREDIT RATING
AGENCY WHICH ISSUED
THE RATING IS NOT
ACCREDITED WITH THE
COMMISSION
FIRST OFFENSE
(Amounts in Pesos)
The credit rating report shall
not be accepted as a
supporting document to the
registration statement
SECOND OFFENSE
(Amounts in Pesos)
(1) 50,000 fine shall be
imposed on the
registrant and rating
agency;
(2) The credit rating report
shall not be accepted as
a supporting document
to the registration
statement;
THIRD OFFENSE
(Amounts in Pesos)
-
119
(3) The violation shall be

referred to EIPD for
appropriate
investigation.

LEGAL BASIS/
REPORT
SRC Rule 12
VIOLATION
FAILURE TO SUBMIT THE
PRESCRIBED REPORTS
UNDER THE RULE
FIRST OFFENSE
(Amounts in Pesos)
25,000
SECOND OFFENSE
(Amounts in Pesos)
50,000
THIRD OFFENSE
(Amounts in Pesos)
100,000
and suspension of
accreditation

LEGAL BASIS
SRC Rule 12
ANNUAL FEE
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
SECOND OFFENSE
(Amounts in Pesos)
THIRD OFFENSE
(Amounts in Pesos)
FAILURE TO TIMELY
SETTLE THE PRESCRIBED
ANNUAL FEE
10,000 plus P100 per

day of delay
20,000 plus 100 per

day of delay

day of delay
FAILURE TO COMPLY
WITH THE PRESCRIBED
INDEPENDENCE,
STRUCTURE AND
PROCEDURAL
REQUIREMENTS UNDER
THE RULE
50,000
100,000 and
suspension of
accreditation
200,000 and removal

of accreditation
SUBSEQUENT
OFFENSES
(Amounts in
Pesos)
40,000 plus 100
per day of delay
and suspension
of accreditation
-
120
18. APPRAISAL COMPANIES

18.1.
ACCREDITATION REQUIREMENT
LEGAL BASIS

Code; Section 68 of the SRC;
SEC MC 4, s2010 or the amended
MC
VIOLATION
Acceptance by an
appraisal company of an
appraisal engagement
with a covered
corporation without prior
accreditation with the
Commission
FIRST OFFENSE
(Amounts in Pesos)
The appraisal report
shall not be accepted as
a supporting document
to the application or
financial statements
Failure of any issuers of

securities to the public or
public companies that
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
1/100 of 1% of the
amount of
consideration
Failure of any public

licensees of the
Commission that declare
property dividend
without any support or
appraisal report of an
accredited appraiser
1/100 of 1% of the
property dividend
SECOND OFFENSE
(Amounts in Pesos)
(1) 50,000 fine;
(2) The appraisal report shall not
be accepted as a supporting
document to the application or
financial statements
(3) The violation shall be referred
to EIPD for appropriate
investigation.
1/100 of 1% of the
amount of consideration
THIRD OFFENSE
(Amounts in Pesos)
-
1/100 of 1% of the
amount of consideration
1/100 of 1% of the
property dividend
1/100 of 1% of the
property dividend
121

LEGAL BASIS
Section 62 of Corporation Code;
Section 68 of the SRC;
MC
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
10,000 plus 100
daily fine
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus P 100
daily fine
THIRD OFFENSE
(Amounts in Pesos)
50,000 and suspension of
accreditation
MATERIALLY
INCOMPLETE ANNUAL
REPORT
10,000
20,000

accreditation
FAILURE TO TIMELY
SUBMIT COPIES OF
RENEWED LICENSE/S OF
THE APPRAISAL
COMPANYS PROPERTY
VALUER/S
10,000
20,000

accreditation
MATERIAL
THE ANNUAL REPORT
10,000
20,000
P50,000 and suspension of

accreditation
MATERIAL
ANY APPRAISAL REPORT
ISSUED BY THE
COMPANY
50,000

accreditation
200,000 and removal of

accreditation
FAILURE TO TIMELY
SUBMIT ANNUAL
REPORT
122

LEGAL BASIS
Section 62 of Corporation Code;
Section 68 of the SRC;
MC
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
day of delay
SECOND OFFENSE
(Amounts in Pesos)
20,000 plus P100 per day of delay
THIRD OFFENSE
(Amounts in Pesos)
40,000 plus P100 per day
of delay
FAILURE TO COMPLY
WITH THE PRESCRIBED
OPERATIONAL AND
QUALIFICATION
REQUIREMENTS FOR
ACCREDITED APPRAISAL
COMPANIES
50,000

accreditation
200,000 and removal of

accreditation
VIOLATION
FIRST OFFENSE
(Amounts in Pesos)
Revocation
SECOND OFFENSE
(Amounts in Pesos)
n/a
THIRD OFFENSE
(Amounts in Pesos)
n/a
FAILURE TO TIMELY PAY

THE PRESCRIBED
ANNUAL FEE
19. OTHER VIOLATIONS

LEGAL BASIS
SEC MC No. 20. s.1999
CORPORATION WHOSE
INCORPORATOR/S
IS/ARE MINOR/S
SEC MC No. 20. s.1999
INCORPORATOR/S WITH
FAKE TINS (TAXPAYER
IDENTIFICATION CARD/S)
Revocation
n/a
n/a
SEC MC No. 20. s.1999
INCORPORATOR/S WHO
IS/ARE DECEASED AT
THE TIME OF
INCORPORATION
Revocation
n/a
n/a
SEC MC No. 20. s.1999
OFFICER/S WHO ARE

DECEASED
Revocation
123
Sec. 21 of Corporation Code
CORPORATION BY
ESTOPPEL
P 10,000
P 20,000
Revocation
Sec. 45 of Corporation Code
ULTRA-VIRES ACTS
P 10,000
P 20,000
Revocation
UNAUTHORIZED USE OF
PREVIOUSLY REGISTERED
CORPORATE NAME
P 10,000
P 20,000
Revocation
SUBMISSION OF
SPURIOUS OR FALSIFIED
DOCUMENTS
Revocation
n/a
n/a
as of 13 November 2013
124

SEC Consolidated Scale of Fines 05 Nov 2013 (26 Nov 2013)

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SEC Consolidated Scale of Fines 05 Nov 2013 (26 Nov 2013)

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CONSOLIDATED SCALE OF FINES

A. REGISTERED CORPORATIONS WITH NO SECONDARY LICENSE

GENERAL INFORMATION SHEETS

Section 141 of the CCP

Total fine plus

Total fine plus

The basis of the penalty is the

An amount based on the

An amount based on the

The basis of penalty is the

The basis of penalty is the

ANNUAL FINANCIAL STATEMENTS

Section 68 of the SRC; SRC Rule 68

OTHER NONCOMPLIANCE WITH THE

Section 16 in relation to Section 38

Changes in the Principal

Retained Earnings less paid-up

Retained Earnings less paid-up

Retained Earnings less paidup capital x.001 or a

ELECTION OF A PRESIDENT WHO

Stock Corporations are

Changes in Fiscal Year

Changes in the Annual

Foreign Investment Act (FIA) and

Increase in the Foreign

SEC Memorandum Circular No. 6,

GENERAL FORM FOR FINANCIAL

1/5 of 1% of the paid in capital

LATE FILING OF STOCK

(2) NON-STOCK CORPORATIONS

GENERAL INFORMATION SHEETS

Section 141 of the CCP

Total fine plus

Total fine plus

The basis of the penalty is the

An amount based on the

An amount based on the above

An amount based on the

The basis of penalty is the

The basis of penalty is the

The basis of penalty is the

ANNUAL FINANCIAL STATEMENTS

Section 68 of SRC; SRC Rule 68

OTHER NONCOMPLIANCE WITH THE

2.2 OTHER REQUIREMENTS

(3) FOREIGN CORPORATIONS

3.1 STOCK BRANCH OFFICE

GENERAL INFORMATION SHEETS

Total fine plus

Total fine plus

GENERAL INFORMATION SHEETS

Section 141 of the CCP;

The basis of the penalty is the

ANNUAL FINANCIAL STATEMENTS

Sec. 68 of the SRC; SRC Rule 68

OTHER NONCOMPLIANCE WITH THE

An amount based on the

An amount based on the above

An amount based on the

The basis of penalty is the

The basis of penalty is the

The basis of penalty is the

3.1. b. OTHER REQUIREMENTS

Basic fine: 7,000.00