SEC Establishes Processing Timelines and 'Deemed Approved' Status for Unattended Application Filings
The Securities and Exchange Commission (SEC) has taken a significant step towards improving government efficiency with the issuance of Memorandum Circular No. 07, Series of 2025. This new directive, championed by SEC Chair Francis Lim, aims to eliminate delays and bottlenecks, instill internal discipline, and provide entrepreneurs and investors with quicker and more predictable service from the SEC.
The circular sets specific deadlines for processing applications such as business registrations, permits, licenses, and other authorizations. Simple applications must be processed within three working days, while more complex ones will have a general maximum processing period of 45 calendar days. Highly technical transactions, requiring specialized evaluations or clearances from other government agencies, will be processed within 20 days.
To ensure accountability, the SEC has introduced a "deemed approved" rule. If a complete application is not acted upon within the prescribed period without issuing any deficiency notice, it will be considered approved automatically. Upon deemed approval, a Payment Assessment Form (PAF) must be issued immediately, and the requested documents must be released to the applicant within two days after payment.
However, there are exceptions to these processing periods. Applications governed by special laws or unique circumstances, as detailed in Annex A of the circular, are not subject to the general timelines. Agri-business corporations and hospitals are also excluded from the 45-day review timeline.
It's important to note that approvals granted under this automatic mechanism remain subject to verification afterwards. Submission of false or misleading information, or failure to submit all required documents, may lead to administrative penalties, including revocation of permits or licenses. The SEC retains the right to pursue actions against applicants for damages caused by such false information.
The SEC's measures benefit a wide range of stakeholders, including small business owners and large corporations. This initiative is a significant step towards more efficient and accountable public service, reflecting a commitment to timely action and improved service delivery for the business community. The circular does not apply to applications under investigation or those falling under the exclusions listed in Section 4.4, which include applications subject to ongoing legal proceedings, regulatory investigations, or administrative actions, and instances where fraud, misrepresentation, or submission of false information is found. Situations where the delay was caused by force majeure or other circumstances beyond the control of the SEC are also exceptions to the prescribed processing periods.
In cases where a complete application remains pending beyond the allowed period, the SEC is required to issue a Payment Assessment Form (PAF). This directive is part of the SEC's ongoing efforts to streamline its operations and provide a more efficient, transparent, and predictable service to the public.
- The new SEC directive also emphasizes on streamlining financial procedures, as it has established specific deadlines for various finance-related transactions, such as business registrations and permit applications, ensuring quicker and more predictable service for businesses.
- With an increased focus on government accountability, the "deemed approved" rule applies not only to the processing of business applications but also to financial transactions, making it mandatory for the SEC to issue a Payment Assessment Form (PAF) immediately upon deemed approval of a complete application, and release the requested documents within two days after payment.
