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Credit Rating Agencies
To increase reliance on the report of credit rating agencies in performing credit evaluation of corporations and business projects or of debt issues with the intention of assessing the overall creditworthiness or of ascertaining the willingness and ability of the issuer to pay its financial obligations as they fall due and which assessment is translated by credit ratings periodically and publicly announced.
The requirements for accreditation of credit rating agencies are contained in the 2015 Implementing Rules and Regulations (IRR) of the Securities Regulation Code (SRC).
| Division & Department/Office: |
Office of the General Accountant (OGA) – Accounting and Audit Policy Division | ||
| Classification: | Highly Technical (20 days) | ||
| Type of Transaction: | G2B – Government to Business | ||
| Type of Service: | External Service | ||
| Who may avail: | Target SEC Clients/Stakeholders/Customers |
Others, please specify: Credit Rating Agencies. | |
| Guidelines During Pandemic: |
No | ||
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CHECKLIST OF REQUIREMENTS Scanned copies of documents with physical/wet signatures and 1 original physical copy of the following: |
WHERE TO SECURE | ||
| 1. Notarized application for accreditation | Securities and Exchange Commission official website (https://www.sec.gov.ph/forms-and-fees/accreditation/) (https://www.sec.gov.ph/accountants-information/forms/) |
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| 2. Applicant should be a stock corporation and have a minimum paid-up capital of at least PHP 10 Million | Applicant | ||
| 3. List of shareholders and their corporate affiliations | Applicant | ||
| 4. List of other business activities, if any | Applicant | ||
| 5. Copies of its Articles of Incorporation and By-Laws | Applicant | ||
| 6. Written code of conduct that can ensure the independence of the rating specialists and the rating agency from the Issuers it is rating | Applicant | ||
| 7. Rating scales, criteria, measurements, symbols and related assessment devices it uses | Applicant | ||
| 8. Operating procedures, rating policies, rating criteria and other rationale used in arriving at a rating | Applicant | ||
| 9. Copy of model written agreement with Issuers | Applicant | ||
| 10. Manual on Corporate Governance | Applicant | ||
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11. Sworn Statement of the following: o Ownership structure and possible conflicts of interest o Names, professional qualifications and independence of the staff involved in the rating decision o Disclosure of affiliations, training, assistance or support it receives from international rating agencies, if any |
Applicant | ||
| Physical copies of the documents shall be submitted on or before issuance of the certificate. | |||
| CLIENT STEPS | AGENCY ACTIONS | FEES TO BE PAID | PROCESSING TIME | PERSON RESPONSIBLE |
| 1. Secure checklist of requirements from the OGA either through call, (02) 8818-9763, or through email, secoga@sec.gov.ph. | 1. Provides client a checklist of requirements with instructions. | None | 5 minutes | Officer of the day Office of the General Accountant |
| 2. Submits application documents via email to secoga@sec.gov.ph | 2. Pre-evaluates application and supporting documents. | None | 4 hours | Officer of the day |
| 2.1. If application and supporting documents are not complete, the same are returned to the applicant with a list of requirements not complied with. If it is complete, the “Officer of the Day” clears the application for payment of the prescribed fees. | ||||
| 2.2. Prepares Payment Assessment Form (PAF) and instructs applicants to process payment and presents a copy of O.R. | None | 10 minutes | Executive Assistant eSPAYSEC |
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| eSPAYSEC | ||||
| 2. Receives the PAF and pays the filing fee. |
2. Process payment and issues O.R. If paid via eSPAYSEC, an electronic official receipt is generated which will serve as the official copy of the Client. |
Filing Fee: PHP 50,000.00 |
10 minutes | eSPAYSEC |
| The client may choose to pays via Electronic System for Payment to the SEC (eSPAYSEC) or over the counter payments at any Landbank branch nationwide. | If paid via Landbank branch, the bank will issue a machine-validated onColl Payment slip which will serve as the proof of payment of the Client. | Annual Fee: PHP 15,000.00 | Landbank | |
| 3. Submits a copy of proof of payment via eSPAYSEC or Landbank with the application and its supporting documents | 3. Checks contents of the documents. Afterwards, inputs the application to Index Tracking System and forwards the same to the Assistant Director for the assignment. | None | 10 minutes | Executive Assistant |
| 3.1. Forward documents to assigned personnel | None | 5 minutes | Assistant Director | |
| 4. Compliance with comments of the Office of the General Accountant , if any | 4. Reviews application and supporting documents using the OGA’s Evaluation Sheet. If complete and qualified, GO TO STEP 5.5. And if not compliant, prepare a comment letter to the applicant. | None | 12 days | Assigned Personnel |
| 4.1. Reviews comment letter and returns to Assigned Personnel | None | 2 days | Supervising Accountant | |
| 4.2. Reviews and discuss comment letter and return to Supervising Accountant or endorse to the General Accountant | None | 1 day | Assistant Director | |
| 4.3. Reviews approves and signs comment letter |
None None None |
1 day 1 hour 30 minutes |
General Accountant Assigned Personnel Supervising Accountant |
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| 4.4. If no compliance is made within the prescribed period (allow a 30-day mailing and reply period from date of letter), prepare a letter denying the application for failure to comply with the requirements. The letter shall be reviewed and approved by the Assistant Director and General Accountant. |
None None None |
5 minutes 5 minutes 1 hour |
Assistant Director General Accountant Assigned Personnel |
|
| 4.5. If there is a submission but still not fully compliant with the requirement, GO TO STEP 5 but with a written warning that shall result to the denial of the application | None | 2 hours | Assigned Personnel | |
| 4.6. If applicant fully complies with the requirements, prepares Memorandum to Commission en Banc, Evaluation Sheet and other supporting documents (through Supervising Commissioner) | ||||
| 4.7. Reviews Memorandum, Evaluation Sheets and other supporting documents and returns to Assigned Personnel to effect corrections. If Memorandum and other documents are already acceptable, forward the same to the Assistant Director. | None | 1 hour | Supervising Accountant | |
| 4.8. Review, discuss, and endorse findings to the General Accountant. | None | 30 minutes | Assistant Director | |
| 4.9. Approves and signs Memorandum, Evaluation Sheets and other supporting documents. Forwards application folder to Supervising Commissioner for approval/clearance for presentation to Commission en Banc | None | 30 minutes | General Accountant | |
| 4.10. Reviews Memorandum and other documents | None | 1 day | Supervising Commissioner | |
| 4.10.1. If with inquiries/comments, returns the application folder to OGA for further evaluation (GO TO STEP 5) | ||||
| 4.10.2. If application is already acceptable, signs document for presentation by General Accountant to Commission en Banc | ||||
| 5. Presents Memorandum to the Commission en Banc for consideration (after clearance from Supervising Commissioner) | None | 1 hour | General Accountant | |
| 5.1. Receives advice of the resolution of the Commission En Banc on the application | None | 1 hour | Assigned Personnel | |
| 5.1.1. If approved, GO TO STEP 6. | ||||
| 5.1.2. If Denied: Notifies the applicant of the denial and reasons thereof, GO TO STEP 5 | ||||
| 5.1.3. If Deferred: Notifies the applicant of the deferment and requirement to be complied with or necessary action to correct the deficiency, GO TO STEP 5 | ||||
| 5. Presents authority to receive certificate | 6. Prepares Certificates of Accreditation: | |||
| Receives the PAF and pays the filing fees via Electronic System for Payment to the SEC (eSPAYSEC.) or over the counter payments at any Landbank branch nationwide. | 6.1. Print two (2) copies and prepares Payment Assessment Form (PAF) for documentary stamp | Documentary Stamp PHP30.00/application | 10 minutes | Executive Assistant |
| Submits a copy of proof of payment via eSPAYSEC or Landbank. | 6.2. Check details and initials on copies | 5 minutes | Assigned Personnel | |
| 5 minutes | Supervising Accountant and Assistant Director | |||
| 6.3. Signs Certificates | 5 minutes | General Accountant | ||
| 6.4. Notifies applicant that the Certificate may be picked up (in case of representative, subject to presentation of authorization letter) | 5 minutes | Executive Assistant | ||
| 6.5. Receive physical copy of the documents and stamps “Received”. Receives copy of proof of payment. Releases certificate of accreditation and forwards duplicate file to clerk and Logs in registry of Accredited Appraisal Companies; informs Index Tracking Personnel of the issuance of the certificate. Also Provides MIS with updated list (Kindly ensure that physical copies of the required documents are already submitted and complete) | 1 hour | Executive Assistant | ||
| TOTAL: |
Filing Fee: PHP 50,000.00 Annual Fee: PHP 15,000.00 Documentary Stamp PHP30.00/application |
20 days |
Notes: The above processing time commences upon actual receipt of documents and payment of processing fee. It excludes the response period to comment and extension.