In a landmark move to significantly enhance service delivery and reinforce its commitment to ease of doing business, the Securities and Exchange Commission (SEC) today announced the issuance of new guidelines enforcing strict timelines for processing nearly all types of applications. This groundbreaking policy includes a “deemed approved” provision for requests that remain unaddressed beyond the prescribed period.
The new regulations are outlined in SEC Memorandum Circular No. 7, Series of 2025, titled “Affirming the Commission’s Commitment to Ease of Doing Business, and Providing for Strict Timelines in the Processing of Applications and the Guidelines for Applications Deemed Approved,” effective July 14, 2025. This circular establishes clear, enforceable turnaround times for permits, licenses, registrations, certificates, clearances, and other authorizations, with only a limited list of exclusions.
“I said on Day One that I wanted the SEC to be known not only as a good regulator, but as a good facilitator of doing business,” stated SEC Chairman Francis Lim, quoting from his inaugural address to SEC employees on June 10, 2025. “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.”
Key Provisions of the New Circular:
- Simple applications will be processed within 3 working days.
- Complex applications requiring evaluation or coordination must be resolved within 7 working days.
- Highly technical applications needing legal or financial review or inter-agency clearances will be completed within 20 working days.
- Transactions governed by special laws will adhere to timelines under applicable statutes or the SEC Citizen’s Charter.
Crucially, if the Commission fails to act within these prescribed timelines without notifying the applicant of any deficiencies, the application will be deemed approved, provided all documentary requirements have been submitted.
Upon confirmation of completeness and the lapse of the processing period, the SEC is mandated to immediately issue the corresponding Payment Assessment Form (PAF). After payment, the requested documents must be released within two working days.
Approvals granted under the “deemed approved” rule will undergo post-approval evaluation. Applicants found to have submitted false or misleading information or failed to submit required documents will face administrative penalties, including revocation of the issued approval. “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 or failure to comply with the SEC requirements,” Chairman Lim added.
Exclusions and Pending Applications:
The new policy will not apply to cases involving ongoing legal proceedings or regulatory investigations, fraud or misrepresentation, force majeure or uncontrollable delays, and applications requiring specialized or multi-agency evaluations where the SEC’s inability to act is attributable to other government agencies.
The Circular also prescribes procedures for pending applications:
- All applications with valid PAFs as of July 14, 2025, will be deemed approved upon payment, with documents released within two working days.
- Covered applications submitted at least 20 days before the circular’s effectivity (except those reverted as of June 30, 2025) will receive their PAFs within three days from July 14, and the “deemed approved” rule will apply.
- For reverted applications, deficiencies must be addressed within 10 working days from July 14, otherwise they will be deemed abandoned, without prejudice to re-filing.
Specific procedures were also prescribed for certain pending applications due to public policy considerations, including primary registration and secondary licenses for lending and financing companies, clearances, business plan amendments, online lending platform disclosures, OTC market approvals, and broker-dealer associations.
“We recognize that predictability in regulatory action is vital to the business community, and with this policy, we are saying clearly: the SEC will act, and act swiftly,” Chairman Lim emphasized.
This new circular is part of a series of reforms initiated by the SEC since Chairman Lim assumed leadership on June 10, 2025. Earlier, the SEC issued a circular reducing by 50% fees for securing copies of documents, further aiming to reduce the cost of doing business for entrepreneurs and investors.
“I wish to publicly thank all the SEC commissioners, directors, and staff for their cooperation. With the dedication and hard work that they have shown in the past month, I do not have doubt that the SEC will improve its services in a significant way – in alignment with the objectives of Republic Act No. 11032 or the Ease of Doing Business and Efficient Government Service Delivery Act of 2018,” concluded Chairman Lim.
