SEC Imposes Mandatory Timelines for Application Processing
On July 10, 2025, the Securities and Exchange Commission (SEC) issued new guidelines under Memorandum Circular No. 7, series of 2025, to set strict processing periods for all types of application before the Commission.
This is pursuant to SEC’s commitment to uphold the policy for efficient turnaround, transparency, and accountability in the delivery of government services under Republic Act No. 11032, otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act (EODB Act). The SEC aims to streamline processes and requirements for the compliance and convenience of stakeholders.
The guidelines apply to all applications for permits, licenses, registrations, certificates, clearances, accreditations, and other authorizations submitted to the SEC by corporation, partnerships, foundations, association, and other regulated entities.
Annex A of the Circular outlines certain transactions that are not within the coverage of the new rules such as petitions to lift order of revocation, petitions for calling of meeting and election of officers, petitions for voluntary dissolution with affected creditors, registration of securities and licensing of investment company, merger and consolidation, etc.
Classification of Transactions and Prescribed Processing Times
Outlined below are the classification of transactions and their corresponding timelines which shall be reckoned from the submission of complete documentary requirements:
| Type of Transaction | Description |
Processing Time |
|
Simple Transactions |
Routine applications with minimal discretion | 3 working days |
| Complex Transactions | Applications requiring evaluation or coordination | 7 working days |
| Highly Technical Transactions | Involving financial/legal review or multiple clearances | 20 working days |
| Transactions Governed by Special Law | Specific transactions defined by law, other than the EODB Act, to be processed within a certain number of days |
As specified in the law and/or the SEC Citizen’s Charter |
Applications Deemed Approved
An application or request shall be deemed approved if the SEC fails to act on the same within the prescribed processing periods above and no written notice of delay or deficiency has been issued to the applicant, provided that all required documents were submitted. Pending applications shall be immediately issued with a corresponding PAF when (a) all required documents were submitted; (b) no written notice of delay or deficiency has been issued to the applicant; and (c) the prescribed processing period as outlined above has lapsed.
The license, permit, certification, clearance, accreditation, or authorization applied for shall be issued by the SEC immediately or not later than two (2) working days upon payment of the PAF.
The applicant may obtain the physical copy of a license or permit from the Department concerned by submitting the official receipt of the fees paid.
The abovementioned processes do not apply in cases involving (a) ongoing legal proceedings, regulatory investigations, or administrative actions; (b) fraud or misrepresentation; (c) delays caused by force majeure or other circumstances beyond the control of the SEC; and (d) applications requiring specialized technical evaluations or clearances from other government agencies.
Pending Applications
Applications with valid PAFs as of July 14 (the effectivity date of the Circular) will be deemed approved upon payment, with documents to be issued immediately or not later than two (2) working days. Applications submitted at least twenty (20_ days before effectivity of the Circular (except those reverted as of June 30, 2025) will be issued PAFs within three (3) working days from July 14, deemed approved upon payment of the PAF, and issued the document immediately or not later than two (2) working days. For reverted applications, deficiencies must be addressed within ten (10) working days from July 14, otherwise they will be deemed abandoned, without prejudice to the refiling of such applications.
The full issuance may be viewed here.
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Published on February 5, 2020
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