The Securities and Exchange Commission (SEC) is a Philippine government agency responsible for the registration and supervision of corporations and securities, capital market institutions and participants, and the protection of the investing public.
Created on October 26, 1936, by Commonwealth Act 83 (also known as The Securities Act), the SEC serves as the registrar and overseer of the Philippine corporate sector. The agency supervises more than 600,000 active corporations, evaluates financial statements filed by registered entities, and develops and regulates the capital market.
Core Mandate
The SEC operates under the following legal framework:
- Registration and supervision of corporations, partnerships, and associations
- Regulation of securities and investment instruments in the Philippines
- Capital market development and oversight
- Investor protection and education
- Enforcement of corporate governance standards
You should understand that the SEC plays a critical role in ensuring market integrity. The agency has jurisdiction over all corporations that are grantees of primary franchises or hold licenses issued by the government.
Key Services
The SEC provides several services to businesses and investors:
- Primary Registration – Incorporation of new corporations, partnerships, and associations
- Secondary Registration – Securities registration for public offerings
- Licensing – Accreditation of capital market professionals, including brokers and dealers
- Corporate Monitoring – Review and evaluation of Audited Financial Statements submitted by registered entities
- Investor Advisories – Public warnings against fraudulent investment schemes
Jurisdiction
The SEC's jurisdiction covers the entire Philippines. The main office is located at 7907 Makati Avenue, Salcedo Village, Bel-Air, Makati City, with extension offices in Cebu, Davao, Iloilo, Laoag, Tarlac, and other key regions.
Relevance to Real Estate Brokerages
For Philippine real estate brokerages, the SEC is a critical regulatory body alongside the Bureau of Internal Revenue (BIR). Here's why you need to know about the SEC:
- Corporate Registration – All brokerages organized as corporations must register with the SEC before operating
- Annual Compliance – Registered corporations must submit Audited Financial Statements (AFS) annually to the SEC
- BIR Coordination – The SEC shares pertinent information with the BIR for tax compliance purposes
- Capital Requirements – The SEC monitors compliance with minimum paid-up capital requirements for corporations
The SEC, together with the Professional Regulation Commission (PRC) and the Department of Human Settlements and Urban Development (DHSUD), forms the regulatory framework that governs the Philippine real estate industry.
Related Terms
- Bureau of Internal Revenue (BIR)
- Audited Financial Statements (AFS)
- Professional Regulation Commission (PRC)
- Department of Human Settlements and Urban Development (DHSUD)
- Philippine Financial Reporting Standards (PFRS)
References
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