Business groups have expressed opposition to the Securities and Exchange Commission’s (SEC) proposal to increase fees and charges that could negatively impact small and medium enterprises (SMEs), as well as exceed Supreme Court rulings. In a joint statement issued by 12 business organizations, including the Philippine Chamber of Commerce and Industry and the Philippine Retailers Association, they called on the SEC to review the proposed draft Memorandum Circular on the Revised Schedule of SEC Fees and Charges. The groups argued that the proposed increase in regulatory fees goes against principles such as cost recovery and socio-economic impact. They also cited previous Supreme Court rulings that discouraged fee increases that could discourage small investors and hinder market growth. The business groups recommended that the SEC submit the proposed policy to the Anti-Red Tape Authority (ARTA) for a Regulatory Impact Assessment (RIA) to ensure it does not have a negative impact on the business and economy. They also called for exhaustive stakeholder consultation prior to the RIA as part of the regulatory process. The groups noted that Administrative Order No. 31, s. 2012, and a joint circular by the Department of Finance, Department of Budget and Management, and National Economic Development Authority emphasize the importance of balancing cost recovery and socio-economic impact in regulating fees. They expressed concerns about the SEC’s current fees collected from stock market transactions, arguing that they already exceed the cost of operations. The business groups also raised concerns about the cost of the CIFFS eSearch Facility, which allows the public to purchase and download digital copies of documents submitted to the SEC. They indicated that the desire to increase fees for the facility seems focused on money-making rather than cost recovery.
