Exposure Draft of Memorandum Circular on the Use of the Electronic SEC Universal Registration Environment (eSECURE)

August 29, 2023 SEC NOTICE SUBJECT : Exposure Draft of Memorandum Circular on the Use of the Electronic SEC Universal Registration Environment (eSECURE) The public is advised that the Commission En Banc , in its meeting on 17 August 2023, resolved to expose the draft Memorandum Circular on the Use of the Electronic SEC Universal Registration Environment (eSECURE). CAIHTE The Commission hereby requests for the comments, suggestions and/or inputs of its stakeholders on the proposed draft Memorandum Circular by submitting written comments on or before 08 September 2023 to Director Oliver V. Chato through email at [emailprotected] or [emailprotected] with the subject line, "COMMENTS ON THE PROPOSED MEMORANDUM CIRCULAR ON THE USE OF THE eSECURE." Issued on August 29, 2023. ATTACHMENT Draft SEC MEMORANDUM CIRCULAR NO. _____ Series of 2023 TO : ALL CONCERNED CORPORATIONS SUBJECT : ELECTRONIC SEC UNIVERSAL REGISTRATION ENVIRONMENT (eSECURE) WHEREAS , the Commission endeavors to digitalize government processes in line with the objectives of Republic Act (RA) No. 11032 or Ease of Doing Business and Efficient Government Service Delivery Act of 2018; WHEREAS , Section 179 (a) of RA No. 11232, otherwise known as the Revised Corporation Code of the Philippines (RCC) provides that the Commission shall exercise supervision and jurisdiction over all corporations and persons acting on their behalf; WHEREAS , Section 180 of the RCC mandates that the Commission shall develop and implement an electronic filing and monitoring system and shall promulgate rules to facilitate and expedite, among others, corporate name reservation and registration, incorporation, submission of reports, notices, and documents required under this Code, and sharing of pertinent information with other government agencies; WHEREAS , Section 179 (o) of the RCC grants the Commission the power and authority to formulate and enforce standards, guidelines, policies, rules and regulations to carry out the provisions of the RCC; aScITE WHEREAS , Section 175 of the RCC authorizes the Commission to collect, retain, and use fees, fines, and other charges pursuant to the RCC and its rules and regulations; WHEREAS , it is imperative to develop and integrate an electronic Know Your Customer ("eKYC") process and credentialing system to strengthen identification, trustworthiness, reachability and veracity of persons that are part of or are representing corporations as well as individuals transacting for SEC's online services; WHEREAS , the eKYC process is an important tool to curb money laundering and/or terrorist financing which can be committed through the use of the corporate vehicle; NOW, THEREFORE , the Commission, pursuant to its authority under the RCC, hereby issues and promulgates the following guidelines on the use of the Electronic SEC Universal Registration Environment (eSECURE): Section 1. Electronic SEC Universal Registration Environment. The Electronic SEC Universal Registration Environment (eSECURE) creates a digital passport of an individual which grants the user access to the different online services provided by the Commission. It allows users to manage their SEC account and online transactions in one place. It enables risk-based credentialing procedure. At the basic level, it implements repeatable Electronic Know-Your-Customer (eKYC) to determine authenticity of identity and establish reachability of persons transacting online with the Commission. At higher levels, other identity verification methods such as courier-based customer visit and remote retail on-customer-premise biometrics capture may be implemented. Section 2. Online Services in eSECURE. To enhance the security of online transactions with the Commission, all individuals who wish to use the online services of the Commission shall register and create an account on eSECURE. Once an account is successfully created, the individual may have access to the following online services: SEC Electronic Simplified Processing of Application for Registration of Company (SEC eSPARC) One-day Submission and E-registration of Companies (OneSEC) Automated Certification Examination System (ACES) Electronic SEC Education, Analysis, and Research Computing Hub (eSEARCH) SEC Application Program Interface (API) Marketplace SEC Electronic Registry Application for Market Participants (SEC eRAMP) SEC eFAST Alternative Submission Environment (SEC EASE) SEC Amendment System SEC Appointment System SEC iMessage For sensitive and critical services where verification and establishment of identity of the user is necessary, a credentialing (or an eKYC) process is described in Section 3. DETACa In mainstream public services such as eSPARC and OneSEC, users may opt to undergo the credentialing process to have a secured and identified continuous access. Users may also opt not to undergo the credentialing process but they will have to establish their identity for every transaction. Users may access the following online systems without an eSECURE account until such time that they are modified and integrated with the eSECURE: SEC Electronic Filing and Submission Tool (SEC eFAST) MC 28 Submission Portal Electronic System for Payment to SEC (eSPAYSEC) Thereafter, access to the abovementioned online services shall only be made after the creation of an account on eSECURE. Section 3. Registration and Credentialing Procedure and Requirements . An individual shall need an email address and mobile number to create an account on eSECURE. For the credentialing of an eSECURE account, the user shall be required to upload a copy of the PhilSys ID or any 2 government-issued IDs listed in Annex A, and go through a liveness check on the eSECURE system. The following are the step-by-step procedures of the credentialing process: A. Login to eSECURE using the assigned userid and password B. Click Credentialing menu (credential status: inactive) C. Click the "Verify credentialing" button D. Click the "Yes, I confirm" button E. Click "Proceed to Goodpay" F. Enter the mobile number G. Click the "Next" button H. Select your chosen payment method I. Click the "Next" button J. Perform the necessary steps/processes within the chosen payment method K. Click the "Personal Verification" button L. Click the "Begin verifying" button M. Select the country from the dropdown where the ID has been issued N. Click the "Select" button O. Select the government-issued ID to be used P. Choose to upload or take a picture of the front page of the ID Q. Select from the options to "Proceed to this device" or "Proceed on different device" R. Perform the liveness check S. Once verification has been completed, click the "Back to SEC Philippines" button T. Credential status should be set to "Active" HEITAD The complete eSECURE User Guide is attached to this Circular as Annex B for reference. Section 4. Validity and Effectivity of Credentialing Process . Once an account is successfully credentialed, the pertinent information of the individual can no longer be changed or modified without undergoing another credentialing process. Credentialing shall be valid for two years and shall be renewed if the individual wishes to continue using the online services of the Commission. Section 5. Cancellation of eSECURE Account . Any user who has registered an account in the eSECURE may request to cancel such account at any time by sending an email to [emailprotected] indicating his account details and the reason for the cancellation of the account. The Commission reserves the right to cancel any account, without prior notice, which has been found to have violated any of the terms of service or to have engaged in the conduct of inappropriate activities using the eSECURE account. A cancelled account shall no longer be allowed to login and use the online services of the Commission. Furthermore, an account can no longer be reactivated once it is cancelled. Section 6. eSECURE Operating Hours . Except for scheduled system maintenance, the eSECURE shall be available and accessible 24 hours a day, 7 days a week. Section 7. Fees and Charges . The following feels shall be imposed upon the user that will undergo the credentialing process on the eSECURE platform: Nature of Transaction Description Fee (inclusive of applicable taxes) Initial credentialing procedure, inclusive of account creation and subscription fee with eKYC provider To be paid upon initiating a credentialing process for the first time Php400.00 Additional credentialing process (as needed) To be paid when user initiate another credentialing process because of changes on pertinent information Php100.00 Annual renewal of credentialing account To be paid upon renewal of the credentialing account Php250.00 Section 8. Technical Support . For inquiries, clarifications and/or technical concerns on the eSECURE, users are requested to contact the Information Systems Development and Management Division (ISDMD) of the Information and Communications Technology Department at [emailprotected] . The ISDMD helpdesk shall be available from 8:00 AM to 5:00 PM during work days. aDSIHc Section 9. Modification or Amendment . All other circulars, memoranda, notices and implementing rules and regulations that may be inconsistent with the foregoing provisions shall be deemed modified or amended accordingly. Section 10. Effectivity . This Memorandum Circular shall take effect upon its publication in a newspaper of general circulation in the Philippines. Makati City, Philippines, _____ September 2023. For the Commission: EMILIO B. AQUINO Chairperson ANNEX A List of eSECURE Acceptable Government-Issued Identification Cards (IDs) aside from the PhilSys ID: 1. Driver's license 2. OFW ID 3. Passport 4. Postal ID 5. SSS ID 6. Unified Multi-Purpose ID (UMID) 7. Voter's ID ANNEX B User Guide ELECTRONIC REGISTRY OF APPLICATION FOR MARKET PARTICIPANTS (eRAMP) Registration to Electronic SEC Universal Registration o Environment (eSECURE) USER GUIDE 1) ACCESSING THE SYSTEM Access the SEC website (www.sec.gov.ph) ATICcS Click Online Services Click eSECURE Click the "Register Now" button 2) REGISTERING AN ACCOUNT Enter email address and mobile number Click the "Next" button Enter the One-Time Password (OTP) sent via email and sms Click the "Next" button Fill out the eSECURE form Tick the "I'm not a robot" button Select images and click "verify" button Click the "Agree and Create account" button 3) CREDENTIALING AN ACCOUNT Click eSECURE Click the "Go to login" button Enter user name and password Click Credentialing menu (credential status: inactive) Click the "Verify credentialing" button Click the "Yes, I confirm" button Click "Proceed to Good pay" Enter the mobile number Click the "Next" button Select your chosen payment method Click the "Next" button Perform the necessary steps/process within the chosen payment method Click the "Personal Verification" button Click the "Begin verifying" button Select the country where the ID has been issued Click the "Select" button Select from the list, one (1) government-issued ID Choose to upload or take a picture of the front page of the government-issued ID Select from the options to "Proceed to this device" or "Proceed on different device" Perform the liveness check Once verification has been completed, click the "Back to SEC Philippines" button Credential Status is "Active"