1. GOVERNMENT ASSOCIATION OF CERTIFIED PUBLIC ACCOUNTANTS
SEC UPDATES
Hon. Antonieta Fortuna-Ibe
Commissioner, SEC
July 21, 2016

2. SEC Updates
Financial Reporting, Accreditation of External Auditors and Quality Assurance Review
Corporate Governance
Corporate Registration
Securities Registration and Monitoring
Information and Communication Technology
Inter-agency Coordination
Memorandum Circulars Issued in 2015 And 2016

3. Financial Reporting, Accreditation of External Auditors and Quality Assurance Review
Objectives: Amendments to SRC Rules 68, as amended
To improve SEC’s financial reporting regulations and enhance compliance by covered corporations;
To enhance the guidelines on accreditation of external auditors and audit firms;
To improve the reliability of audits and align regulation with global practices through the adoption of an oversight assurance review system; and
To adjust the financial statement requirements for registration of securities in preparation for the ASEAN Capital Market Integration.

4. Financial Reporting, Accreditation of External Auditors and Quality Assurance Review
Amendments to Rules 68, as Amended
Among the significant changes in financial reporting:
To incorporate significant interpretations and clarifications issued by the Commission through the Financial Reporting Bulletins.
To improve the form and contents of schedules required from non-stock non-profits organizations – e.g. requirement for audited financial statements.
To provide clarity of the coverage of the Statement of Management’s Responsibility and the requirement of an auditor’s over schedules.
To incorporate in the rule the best corporate governance practices that are directly related to the preparation and audit of financial statements
To provide clarity and easy reference to the basis of testing materiality of findings on financial statements reviewed by the Commission.
To clarify the requirement for the amendment of the financial statements in case there are noted material deficiencies or misstatements therein.

5. Financial Reporting, Accreditation of External Auditors and Quality Assurance Review
Amendments to Rules 68, as amended
Among the proposed amendments relating to accreditation of External Auditors and Audit Firms:
Changes in the composition of Groups A to C categories of regulated entities
Removal of the Group D category.
Adoption of a Quality Assurance Review System (QARS) for external auditors of regulated entities.
To adopt a partnership structure of the practitioner-applicants.
To require a 2-partner accreditation to comply with the 5-year rotation requirement.
To provide a disqualification from accreditation in case of a derogatory record
The audited financial statements to be evaluated for applicants shall no longer be his top two (2) clients in terms of total assets but the audited financial statements of his two clients to be randomly selected by the Commission
Findings by the Commission pursuant to its Annual Review Project will be included in the evaluation of the audit quality of the applicants.
Cooling off period for re-application or request for an upgrade
An applicant can only avail of probationary or conditional accreditation only once.

6. Implementation of the SEC Oversight Assurance Review
Financial Reporting, Accreditation of External Auditors and Quality Assurance Review
Implementation of the SEC Oversight Assurance Review
SOAR is an on-site review of the quality control policies and procedures of SEC accredited auditing firms and review of portions of the audit work of selected audit engagements from time to time.

7. Corporate Governance Corporate Governance
Proposed amendments to SEC Revised Code of Corporate Governance.
Proposed issuance of Guidelines for Related Party Transactions.
The holding of Corporate Governance Forum on August 3, 2016
Amendment of the ASEAN Corporate Governance Scorecard

8. Corporate Registration
“Ease of Doing Business”
Company Registration System
Opening Satellite Offices

9. Securities Registration and Monitoring
Additional Requirements for Registration of Securities
BIR Tax Compliance Certificate
Certification from the in-house counsel of the registrant enumerating all of its pending legal proceedings, including those of its subsidiaries and affiliates, whether material or not
Specific dividend policy of the registrant and all of its subsidiaries; and
Certification from the issuer that all of its subsidiaries and affiliates have filed their recent audited financial statements with the SEC.
Joint Certification of the Issuer and Underwriter that any change or revision introduced in the Registration Statement is made known to each other.
Issuance of Unitized Mutual Funds
New Trading System of the Philippine Stock Exchange or PSE

10. Investors Protection
Issuance of advisories to the public warning them of the reported scams
Enhanced coordination with the law enforcement agencies and local government units to apprehend perpetrators of investment scams.
More aggressive educational campaigns versus these scams
Filing criminal complaints with the Department of Justice against perpetrators of investment scams
Acquisition and installation of a new market surveillance system.

11. Information and Communication Technology
New ICT Systems
Procurement Monitoring Tracking System
Certification Issuance System
XBRL System

12. Legislative Agenda Proposed Amendments to the Corporation Code
To further strengthen the enforcement power of the Commission and to effectively carry out its mandate to promote good corporate governance
 Proposals to allow the creation of a one-man corporation, to provide perpetual corporate term and to include good corporate governance practices.
Proposed amendment to the Securities Regulation Code
Strengthening of SEC enforcement power
Passage of Collective Investments Act

13. Inter-Agency Coordination
Financial Sector Forum
Council for Accreditation and Quality Control of Practicing CPAs
Financial Stability Coordinating Council
National Law Enforcement Coordinating Committee
Committee on Compilation of Data on Other Financial Corporations

14. TITLE/BRIEF DESCRIPTION Corporate Registration Corporate Registration
SEC Updates: 2015 SEC MEMORANDUM CIRCULARS/Financial Reporting Bulletin
MC No.
TITLE/BRIEF DESCRIPTION
DATE ISSUED
AREA 1
Deadline Extension for Amendment of the Principal Office Address
January 7, 2015
Corporate Registration 2
Additional Guidelines on Corporate Governance Training Programs and Lectures
January 8, 2015
Corporate Governance 3
Filing of Annual Corporate Governance Report
January 14, 2015 4
Amendment to Section 3 of SEC Memorandum Circular No. 19, Series of 2014
February 13, 2015
Corporate Registration 5
Amendments on the Guidelines and Procedures on the Use of Corporate and Partnership Names
May 29, 2015 6
Guidelines on the Use of Corporate Names of Corporations with Dissolved and Revoked Certificates of Registration
June 2, 2015 7
:  Standards and Rules For Accreditation of Special Accessing Entities to the Credit Information System 
July 10, 2015
Credit Information 8
July 31, 2015 9
Final Extension for Amendment of Principal Office Address
July 2, 2015
FRB No. 18
Age Requirement for Financial Statements
December 22, 2015
Financial Reporting

15. SEC Updates: 2016 SEC MEMORANDUM CIRCULARS/FINANCIAL REPORTING BULLETIN
MC No.
TITLE/BRIEF DESCRIPTION
DATE ISSUED
AREA 1
Filing of Annual Financial Statements and General Information Sheet
January 11, 2016
Financial Reporting 2
Additional Requirement for Accreditation as Auditing Firms/Sole Practitioner
February 11, 2016 3
Enforcement of Republic Act 9510 Over Financing Companies
April 5, 2016
Credit Information 4
Guidelines to be Observed by Hearing Officers in Handling Petitions Pursuant to the Provisions of Judicial Affidavit Rule (A.M. No SC, September 4, 2012)
May 5, 2016
Administrative Proceedings 5
Removing the Periods for Filing Petitions to Set Aside Orders of Revocation or Orders Suspension of Corporations for Failure to Comply with the Reportorial Requirements
June 9, 2016
Corporate Registration 6
Omnibus Guidelines on Principal Office Address; Address of Each Incorporator, Director, Trustee or Partner 7
Compliance with Republic Act 9510
June 21, 2016 8
Exemption from the 5% Liquidity Requirement of Mutual Fund Index Trackers
June 28, 2016
Registration of Securities
FRB No. 19
Expectations for an Effective Audit Function
May 3, 2016

16. SEC Updates
Conclusion

17. Thank you!