SEC Issues Guidelines on Allocation of ISIN, CIF, and FISN Codes

The Securities and Exchange Commission (SEC) issued on April 25, 2023, SEC Memorandum Circular No. 7, Series of 2003 (GUIDELINES ON APPLICATION FOR THE ALLOCATION OF ISIN, CFI, AND FISN CODES FOR FINANCIAL INSTRUMENTS).

 

The SEC released the guidelines, in its capacity as the National Numbering Agency (NNA) of the Philippines, and a partner affiliate of the Association of National Numbering Agencies (ANNA). The SEC is the sole issuer of the International Securities Identification Number (ISIN), Classification of Financial Instruments (CFI), and Financial Instrument Short Name (FISN) codes in the Philippines. These are to facilitate trading and settlement in internationally recognized standards.

 

According to Section 1, the following financial instruments are covered by the Guidelines:

 

Registered securities (including their tokenized or digital form):

 

1. Shares of stocks, bonds, government securities, commercial papers, debentures, notes, evidences of indebtedness, asset-backed securities;
2. Investment contracts, certificates of interest or participation in a profit-sharing agreement, certificates of deposit for a future subscription;
3. Fractional undivided interests in oil, gas, or other mineral rights;
4. Derivatives like option and warrants; 
5. Certificates of assignments, certificates of participation, trust certificates, voting trust certificates, or similar instruments; and
6. Other instruments as may in the future be determined by the Commission.

 

As per Section 2 of the Guidelines, securities registered following Sections 8 and 12  of the Code are qualified for allocation of the security identifiers once the Registration Statements are rendered effective by the SEC. Meanwhile, those exempt pursuant to Sections 9 and 10 of the Code are qualified for securities identifiers allocation.

 

Section 3 on General Guidelines provides that fungible financial instruments shall be identified by a single ISIN, CFI, and FISN. Meanwhile, securities intended to be issued in tranches via Shelf-Registration with different issue prices shall be assigned with different ISINs upon issuance of each tranche. However, they have to be assimilated after the first coupon payment. 

 

Section 3 also provides for specific rules for issues with different denominations; issues denominated in different currencies; and debt securities issued with warrants under SRC 12.1.3.1.

 

The Memorandum Circular may be read in full here.