Philippine SEC sets strict timelines, ‘Deemed Approved’ rule for applications

Insider Spotlight:

• SEC enforces 3- to 20-day limits on application processing
• Unattended applications will be “deemed approved”
• Policy aligns with Ease of Doing Business law
• Applies to permits, licenses, registrations, and more
• Post-approval checks aim to prevent abuse

The Securities and Exchange Commission has issued a new policy imposing strict deadlines on the processing of business applications, with a “deemed approved” mechanism that automatically grants unacted requests once deadlines lapse — a significant shift intended to reinforce ease of doing business in the country.

Why it matters:

SEC Chair Francis Lim said the policy is aimed at eliminating regulatory delays and instilling operational discipline within the Commission.

“This policy breathes life into that promise — we are removing bottlenecks, eliminating unreasonable delays, and imposing discipline in our internal processes to give entrepreneurs and investors the level of responsiveness and certainty they deserve,” he said in a press statement emailed to InsiderPH on Sunday night.

Driving the news:

The SEC released Memorandum Circular No. 7, Series of 2025, on July 10, which outlines time-bound commitments for processing permits, licenses, registrations, clearances, and other authorizations. Applications must be completed within:

• 3 working days for simple requests
• 7 working days for complex evaluations
• 20 working days for highly technical or inter-agency-dependent submissions

Applications covered by special laws must follow separate timelines stated in the law or the SEC Citizen’s Charter.

Francis Ed. Lim

The SEC chief is shifting the onus of expediting approvals to the corporate regulator.

The catch:

If the SEC fails to act within the prescribed period and does not issue a deficiency notice, the application will be considered approved — provided the submission is complete. A Payment Assessment Form (PAF) must then be issued immediately, with documents released within two days of payment.

Yes, but:

Approvals under this mechanism remain subject to post-approval checks. False or misleading information, or failure to submit required documents, can lead to administrative penalties, including revocation. “This is without prejudice to the right of the public to proceed against applicants in case they suffer damage as a result of the applicants’ false or misleading information,” Lim said.

Catch-up coverage:

The policy applies retroactively to pending applications with valid PAFs as of July 14. Applications filed 20 days before effectivity (excluding reverted cases as of June 30) will also be processed under the new rules.

What’s next:

The SEC said the reforms will continue as part of a broader effort to align with the Ease of Doing Business Act. Lim added, “I do not have doubt that the SEC will improve its services in a significant way.”

— Edited by Daxim L. Lucas