SEC Memorandum Circular No. 4 (2001)

(NAR) VOL. 12 NO. 2 / JANUARY - MARCH 2001

[ SEC MEMORANDUM CIRCULAR NO. 4, May 03, 2001 ]

SCHEDULE OF FEES, FINES AND PENALTIES

Pursuant to the Securities Regulation Code [SRC] (RA No. 8799) and its Implementing Rules and Regulations, the Basic Rules to Implement the Provisions of the Investment Houses Law (P.D. 129), the Corporation Code (BP Bldg., 68) and the Investment Company Act (RA No. 2629), the following schedule of fees, fines and penalties are hereby adopted:

A. Broker/Dealer 1. Fees Date of Filing Amount New Registration Head Office P50.000 + other fees Branch Office 10,000 +other fees Salesman 2,000 + other fees Associated Person 3,000 + other fees Dec. 2 Renewal Head Office P20.000 + other fees Branch Office P 5, 000 + other fees Salesman P 1,000 + other fees Associated Person P 1,500 + other fees 2. Fines and Penalties Reports FINOP (late filing) Within 15 days after Basic fine of month end P10,000 Plus P100 for every day of delayAnnual Audited Financial Report 110 days after end or Basic Fine of fiscal year P10.000 Plus P100 for every day of delay Other periodic reports Basic fine of P10,000 Plus P100 for every day of delay Other practices prohibited under SRC P10.000 for every violation without prejudice to the filing of criminal case B. INVESTMENT COMPANY ADVISERS 1. Fees Date of Filing Amount New Registration Head Office P10.000 + other fees Sales Agent P 2.000 + other fees Renewal March 15 Head Office P3,000 + other fees Sales Agent P1.000 + other fees C. Investment houses 1. Fees Date of Filing Amount New Registration Head Office P50.000 + other fees Sales Agent P10,000 + other fees Associated Person 1,000 +other fees Renewal January 15 Head Office P10,000 +other feesBranch Office P 5,000 + other fees Associated Person P 500 + other fees 2. Fines and Penalties Reports Progress Within 15 days end of P 200 per day of quarter delay Semi-Annual Within 60 days end of P 200 per day of semester delay Annual Within the month of P 200 per day of March of each year delay General Information Sheet 1 month after the date of P 200 per day of the actual Annual delay Meeting Other Violations - Minimum Paid-up Capital P 200 per day of Requirement non-compliance - Unimpaired Capital P200 per day of non-compliance - 25% Fee-Based Income P200 per day of non-compliance - Capital Adequacy Ratios P200 per day of non-compliance - Single Borrower's Limit - Networth to Risk Asset - Interlocking Directors P200 per day of non-compliance - Underwriting Fees P200 per day of non-compliance D. Transfer Agents 1. Fees Date of Filing Amount New registration Within 30 days from June P10,000 + other 1 of every year fees Renewal Within 30 days from June P3.000 + other 1 of every year fees plus P200.00 per issue beinghandled but not more than P5,000.00 2. Fines and Penalties Failure/Late Filing of Monthly 10 days after the end of Basic Fine- Reconciliation of PCD and TA each month P10.000 Plus P100/day of delay Failure/Late Filing of monthly 10 days after the end of Basic Fine-certification as to the number of shares each month P10.000 Plus registered under the name of PCD P100/day of Nominee delay Failure/Late submission of Annual 105 days after the end of Basic Fine Report fiscal year P10.000 Plus Using SEC Form 36-AR P100/day of delay Failure to submit any of the following exception reports - Any delay in the turnaround or Within 7 days of the Basic Fine processing of an issue, transfer or occurence of the events P10,000 Plus replacement of a security P100/day of delay - Any discrepancy between its records and those of the registered clearing agency, if applicable - Any loss of securities reports to it; and - The termination of its functions as a transfer agent for a particular security Failure to submit Annual Audited 105 days after the end of Basic fine of Financial Statements fiscal year P10.000 Plus P100/day of delay Failure to submit General Information Within 30 days from the Basic fine Sheet (GIS) date of post P10.000 Plus ponement of the Annual P100/day of Meeting delay Failure to submit Affidavit of Non- Within 30 days from the Basic fine Holding of Meeting of Postponement date of post P10.000 Plus of Annual Stockholder's Meeting ponement of the Annual P100/day of Meeting delay Failure to submit Notice of Change of Within 10 days after the Basic fine Address end of P10.000 Plus each month P100/day of delayThis memorandum circular shall take effect immediately. Adopted: 3 May 2001

(SGD.) LILIA R. BAUTISTA Chairperson