Amendment to the Consolidated Scale of Fines (SEC Memorandum Circular No. 6, Series of 2005)

June 8, 2009 SEC MEMORANDUM CIRCULAR NO. 04-09 AMENDMENT TO THE CONSOLIDATED S CAL E OF FINES (SEC MEMORANDUM CIR CU LAR NO. 6, SERIES OF 2005) The Commission En Banc, in its meeting held on May 13, 2009, approved the amendment of the Consolidated Scale of Fines (SEC Memorandum Circular No. 6, Series of 2005) by deleting the word "Warning" as a penalty for the First Offense and including a sub-group for public companies engaged in the business of providing "health and educational" services after paragraph 3 of said Circular as follows: ICHcTD "However, if the violation of the SRC Rule 17.1 and its Implementing Rules and Regulations is committed more than three (3) times by any of the public companies enumerated below, the Commission may impose a fine, in lieu of suspension or revocation, equivalent to the basic penalty plus the daily penalty per current Scale and increments of P10,000.00 and P100.00 on the basic penalty and the daily penalty, respectively: i. Public companies engaged in the business of formal education as defined under Section 20 of Batas Pambansa Bilang 232 which includes preparatory grade or the one-year preparatory level prior to Grade I, elementary education, secondary and/or tertiary education; and ii. Public companies engaged in the business of health care services rendered by health care institutions as defined under Section 4 (o) (1), Article II of Republic Act 7875, excluding wellness centers and health care institutions engaged exclusively in out-patient psychotherapy and counseling for mental disorders, drug and alcohol abuse or dependency treatment, cosmetic surgery, home and rehabilitation services, optometric services, or normal obstetrical delivery. Attached as Annex "A" is a Table of penalties for public companies engaged in the business of education and health care services to the public." The foregoing amendment shall take effect fifteen (15) days from publication in two (2) newspapers of general circulation in the Philippines. June 8, 2009, Mandaluyong City, Philippines. (SGD.) FE B. BARIN Chairperson Published in The Manila Bulletin and Business Mirror on June 10, 2009. ANNEX A Table of Penalties for Public Companies engaged in the Delivery of Education and Health Care Services to the Public. SECTION 17.1; SRC RULE 17.1 VIOLATION First Second Third Fourth Fifth Sixth Every Offense Offence Offence Offence Offence Offence Succeeding (MC No. 6, (MC No. 6, (MC No. 6, Offence S. of 2005) S. of 2005) S. of 2005) LATE FILING Reprimand P30,000.00 P40,000.00 P50,000.00 P60,000.00 P70,000.00 Additional OF CURRENT plus P200.00 plus P400.00 plus P500.00 plus P600.00 plus P700.00 P10,000.00 REPORT per day of per day of per day of per day of per day of in the basic (SEC FORM delay delay delay delay delay imposable 17-C) penalty for the previous violation INCOMPLETE Reprimand P10,000.00 P20,000.00 P30,000.00 P40,000.00 P50,000.00 plus an CURRENT plus P200.00 plus P400.00 plus P500.00 plus P600.00 plus P700.00 additional REPORT per day of per day of per day of per day of per day of P100.00 in (SEC FORM delay of delay of delay delay delay the daily 17-C) filing the filing the penalty This shall be amended amended in addition to report report the penalty for late filing of the report per due date under the Rules LATE FILING Reprimand P50,000.00 P60,000.00 P70,000.00 P80,000.00 P90,000.00 Additional OF plus P300.00 plus P600.00 plus P700.00 plus P800.00 plus P900.00 P10,000.00 QUARTERLY per day of per day of per day of per day of per day of in the basic REPORT (SEC delay delay delay delay delay imposable FORM 17-Q) penalty for the previous INCOMPLETE Reprimand P20,000.00 P40,000.00 P50,000.00 P60,000.00 P70,000.00 violation QUARTERLY plus P300.00 plus P600.00 plus P700.00 plus P800.00 plus P900.00 plus an REPORT (SEC per day of per day of per day of per day of per day of additional FORM 17-Q) delay of delay of delay delay delay P100.00 in This shall be filing the filing the the daily in addition to amended amended penalty the penalty report report for late filing of the report per due date under the Rules LATE FILING Reprimand P100,000.00 P200,000.00 P210,000.00 P220,000.00 P230,000.00 Additional OF ANNUAL plus P500.00 plus P1,000.00 plus P1,100.00 plus P1,200.00 plus P1,300.00 P10,000.00 REPORT per day of per day of per day of per day of per day of in the basic (SEC FORM delay delay delay delay delay imposable 17-A) penalty for the previous INCOMPLETE Reprimand P30,000.00 P60,000.00 P70,000.00 P80,000.00 P90,000.00 violation ANNUAL plus P500.00 plus P1,000.00 plus P1,100.00 plus P1,200.00 plus P1,300.00 plus an REPORT per day of per day of per day of per day of per day of additional (SEC FORM delay of delay of delay delay delay P100.00 in 17-A) filing the filing the the daily This shall be amended amended penalty in addition to report report the penalty for late filing of the report per due date under the Rules