Guidelines on the Applications for Payment of Annual Fees of Capital Market Participants (Institutions and Professionals)

October 13, 2016 SEC MEMORANDUM CIRCULAR NO. 17, S. 2016 SUBJECT : Guidelines on the Applications for Payment of Annual Fees of Capital Market Participants (Institutions and Professionals) The Commission En Banc , in its meeting of 01 October 2015 and confirmed on 29 September 2016, resolved to adopt the following Guidelines: 1. These Guidelines apply to the following SEC-registered/licensed Capital Market Participants: Brokers Dealers in Securities ("BD"), Brokers in Securities ("B"), Dealers in Securities ("D"), Brokers in Proprietary Shares ("BPS") Voice Brokers ("VB"), Investment Houses ("IH"), Investment Houses Engaged in Dealing Government Securities ("IH-GSED"), Underwriters of Securities Engaged in Dealing Government Securities ("US-GSED"), Government Securities Eligible Dealers ("GSED"), Investment Company Advisers ("ICA"), Mutual Fund Distributors ("MFD"), and their respective Associated Persons ("AP"), Compliance Officers ("CO"), Salesmen ("S"), Fixed Income Market Salesmen ("FIMS") and Certified Investment Solicitors ("CIS"). 2. Payment of annual fees shall be in November of each year. Applications for Payment of Annual Fees filed in December of the same year shall be considered late and shall be charged a surcharge of fifty percent (50%) of the annual fees while applications filed after December shall be charged a surcharge of one hundred percent (100%) of the annual fees. Failure to pay the required annual fees shall, after notice and hearing, result in the suspension or revocation of the registration/license. 3. Applications for Payment of Annual Fees shall be filed with the Company Registration and Monitoring Department-Licensing Unit (CRMD-LU). Only applications whose documentary requirements are complete and in order shall be accepted for processing. 4. The requirements for the Applications for Payment of Annual Fees are: A. General Requirements a. Letter, with company letterhead, endorsing the applications of the Institution and the respective Professionals, and signed by the President of the applicant Institution and its APs/COs ("SEC FORM NELET-AF"; form attached). There should be one SEC FORM NELET-AF for every batch/set of applications; those licensed during the last quarter of the calendar year shall have separate SEC FORM NELET-AF, specifying that the applicants are registered/licensed during the last quarter of the calendar year. CAIHTE b. Amendment forms, if applicable. B. For the Institutions: BD, B, BPS, VB a. Application Form for Payment of Annual Fees Main: SEC FORM 28.1-1 Branch: SEC FORM 28.1-1 (BAF) b. Original copy of the Surety Bond if the Unimpaired Paid Up Capital is less than PhP100M c. Annual Fees Refer to existing SEC Schedule of Fees and Charges IH, IH-GSED, US- a. Application Form for Payment of Annual Fees GSED, GSED Main: SEC FORM IHU/GSED-AF Branch: SEC FORM IH-BO-AF b. Annual Fees Refer to existing SEC Schedule of Fees and Charges ICA a. Application Form for Payment of Annual Fees SEC FORM ICA-AF b. Annual Fees Refer to existing SEC Schedule of Fees and Charges MFD a. Application Form for Payment of Annual Fees SEC FORM MFD-AF b. Annual Fees Refer to existing SEC Schedule of Fees and Charges C. For the Professionals a. For IH, IH-GSED, US-GSED, GSED, and ICA, the SEC FORM NELET-AF shall include an undertaking that the respective APs/COs shall attend SEC AP/CO certification seminars and take SEC AP/CO certification examinations. b. Tabular List of Applicants with their respective details: Name in Alphabetical Order, Type of Registration/License; Certificate of Registration Number; Taxpayer Identification Number; Complete Residential Address; and, 1x1 ID picture taken within the last six (6) months ("SEC FORM TLIST-AF-P"; form attached). Each SEC FORM TLIST-AF-P shall be certified correct by at least one AP/CO and shall be attached as an Annex to the SEC FORM NELET-AF; the maximum total number of individual applicants to be indicated in the List should be thirty-five (35) per batch/set. Those registered/licensed during the last quarter of the calendar year shall have separate SEC FORM TLIST-AF-P. c. Annual Fees: Refer to existing SEC Schedule of Fees and Charges. 5. All documentary requirements shall be submitted in two (2) hard copies, with at least one (1) original hard copy, and in soft copy via email at [emailprotected]. 6. All SEC Forms in items 4.B and 4.C may be downloaded from the Commission's website at www.sec.gov.ph. 7. Mere issuance of the Payment Assessment Form does not constitute filing; only applications which have paid the corresponding annual fees shall be considered filed. A Confirmation of Payment of Annual Fees will be issued by the CRMD as proof of the filing. The terms and conditions imposed upon the original/amended registration shall continuously apply to all registered capital market participants. 8. These Guidelines shall be applicable for the payment of annual fees in 2016 onwards. 9. This Memorandum Circular shall take effect after fifteen (15) days from publication in a newspaper of general circulation. Mandaluyong City, Philippines, October 13, 2016. (SGD.) TERESITA J. HERBOSA Chairperson ATTACHMENT SEC FORM NELET-AF (Notarized Endorsement Letter-Annual Fees) Date SECURITIES AND EXCHANGE COMMISSION SEC Bldg., EDSA, Greenhills, Mandaluyong City Attention : CRMD Licensing Unit Subject : Application for Payment of Annual Fees of Capital Market Participants Gentlemen: _________________________________ (Name of Capital Market Institution) , through the undersigned President, hereby applies for the payment of annual fee as _______________________ (Type of Registration/License) , including the annual fees for the following Branches: ___________________ (Enumerate Branches) and, of the ______________________________ (State Number of Professionals Included in the List) Capital Market Professionals listed in the Annexes, for the year ______________ (Indicate Year) . DETACa The undersigned President certifies that all the information contained in the Application Form for Payment of Annual Fees and in the said Annexes is true, correct, current, accurate and complete. The undersigned Associated Persons/Compliance Officers undertake to attend Certification Seminars and take Certification Examinations, for Associated Persons/Compliance Officers, to be administered by the Securities and Exchange Commission in the future. 1 The undersigned understand and agree that should any of the information given is found to be false in any respect, the Commission shall, after notice and hearing, suspend or revoke the registration/license and the persons responsible therefor shall be dealt with in accordance with law. Thank you. Very truly yours, President Signature over Printed Name Associated Person/Compliance Officer Signature over Printed Name Associated Person/Compliance Officer Signature over Printed Name Subscribed and sworn to before me this ____ day of _____________ 20___; signatories exhibited to me their valid identification cards: Valid ID Date Issued Place Issued President AP/CO AP/CO NOTARY PUBLIC Doc No. ______; Page No. _____; Book No. _____; Series ________. SEC FORM TLIST-AF-P (Tabular List of Applicants-Annual Fees-Professionals) ANNEX 1 Name of Company: ____________________________ For the Year: ____________ Name in Alphabetical Order (Last Name, First Name and Middle Name) Type of Registration/License Certificate of Registration Number Taxpayer Identification Number Complete Residential Address 1x1 Recent ID Picture (taken within the last 6 months) Signature Certified Correct: Associated Person/Compliance Officer (Signature over Printed Name) Footnotes 1. For Investment Houses, Investment Houses Engaged in Dealing Government Securities, Underwriters of Securities Engaged in Dealing Government Securities, Government Securities Eligible Dealers, and Investment Company Advisers only. Published in The Philippine Daily Inquirer and The Manila Standard on October 20, 2016.