Rules Prescribing the Penalties for Non-Filing or Late Filing of Documents and Papers Required under the Securities Act and the Rules and Regulations Promulgated Thereunder

April 27, 1972 RULES PRESCRIBING THE PENALTIES FOR NON-FILING OR LATE FILING OF DOCUMENTS AND PAPERS REQUIRED UNDER THE SECURITIES ACT AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER Under and by virtue of the powers vested in this Commission under the Revised Securities Act * and Section 1(b) of Republic Act No. 1143, the following schedule of compromise penalties for non-filing or late filing of documents and papers required under the Revised Securities Act and/or the Rules and Regulations thereunder, is hereby promulgated: llcd I. For failure to submit audited annual or semi-annual financial statements of registered stock brokers and/or dealers operating as exchange member firms as required under Rule A-9 of SEC Rules and Regulations Governing Securities Exchanges and their Members, Brokers, Dealers, Salesmen and Customers, within a period of Sixty (60) days after the close of its annual or semi-annual fiscal year; First violation P25.00 plus an amount not exceeding P10.00 for every day during which such violation or default continues. Second violation P50.00 plus an amount not exceeding P10.00 for every day during which such violation or default continues. Third violation P100.00 plus an amount not exceeding P10.00 for every day during which such violation or default continues. Fourth violation P200.00 plus an amount not exceeding P10.00 for every day during which such violation or default continues. Fifth and succeeding violations P300.00 plus an amount not exceeding P10.00 for every day during which such violation or default continues. II. For failure to submit the report on employees required under Rule B-2 of said SEC Rules and Regulations within ten (10) days after the registration of a broker or dealer, or within the first ten days of January thereafter in case of renewal of such registration: First violation P25.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Second violation P50.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Third violation P100.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Fourth violation P200.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Fifth and succeeding violations P300.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. III. For failure to notify the Commission within 24 hours of any change, dismissal, suspension or resignation of any manager, floor representative, agent, sub-agent, contact-man or salesman of any registered broker or dealer as required under Rule B-3 of SEC Rules and Regulations: First violation P25.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Second violation P50.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Third violation P100.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Fourth violation P200.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. prcd Fifth and succeeding violations P300.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. IV. For failure to submit the transaction report of independent brokers or dealers required under Memorandum dated October 3, 1961 and approved by the Securities and Exchange Commissioner effective January 1, 1962 in relation to Rule B-6 of SEC Rules and Regulations: First violation P25.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Second violation P50.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Third violation P100.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Fourth violation P200.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. Fifth and succeeding violations P300.00 plus an amount not exceeding P5.00 for every day during which such violation or default continues. V. In addition to the above-penalties, any registered stock broker or dealer refusing to pay the penalty imposed under any of the above schedules shall be sufficient cause for denial of renewal or cancellation of his registration. VI. For failure to submit on time the beneficial ownership report required under Section 36 of the Revised Securities Act, BP Blg. 178 as amended and Rule C-1 of SEC Rules and Regulations: Twenty-five (P25.00) plus an amount not exceeding P5.00 for every day during which such violation or default continues. VII. The provision of any memorandum, circular, rule or regulation inconsistent herewith is hereby revoked. LibLex VIII. The foregoing rules shall take effect fifteen (15) days after they have been publicly promulgated by publication in at least two newspaper of general circulation throughout the Philippines. (SGD.) ARCADIO E. YABYABIN Securities and Exchange Commissioner APPROVED: May 2, 1972 (SGD.) TROADIO T. QUIAZON, JR. Secretary of Commerce and Industry Footnotes * The Revised Securities Act, passed on February 23, 1982, supersedes the Securities Act of 1933.