SEC MEMORANDUM CIRCULAR NO. 4, S. 2002, APRIL 30, 2002, April 30, 2002
PAID-UP CAPITAL REQUIREMENT FOR EXISTING PRE-NEED COMPANIES
In conformity with Rule 2 and
other pertinent provisions of the Rules on the Registration and Sale of
Pre-Need Plans under Section 16 of the Securities Regulation Code, the
guidelines on the minimum paid-up capital requirement of existing
pre-need companies are approved as follows:
|
A. Existing Pre-Need Companies |
Paid-Up Capital |
|
|
|
|
1) With traditional education plans |
P100,000,000 |
|
2) With three-type plans |
100,000,000 |
|
3) With two-type plans |
75,000,000 |
|
4) With one-type plan |
50,000,000 |
B. Pre-need
companies selling two to three types of pre-need plans with a minimum
paid-up capital of P50 million but below P75 million shall be authorized
to sell only one plan type. The pre-need companies concerned shall indicate their choice of plan type no later than May 7, 2002. However,
pre-need companies are not precluded from infusing the required paid-up
capital to enable such companies to sell the plan types they have been
previously authorized to sell. This shall also apply to companies selling traditional plans but do not meet the P100 million paid-up requirement.
C. Pre-need
companies with paid-up capital below P50 million shall have a
non-extendible period of up to May 30, 2002 to put up the capital
deficiency for a P50 million paid-up capital requirement for a one-type
plan. Failure to comply will be a ground for suspension of permit to sell.
D. The minimum paid-up capital of new pre-need corporations shall remain at P100 million regardless of plan types.
For strict compliance.
Adopted: 30 April 2002
(SGD.) LILIA R. BAUTISTA
Chairperson
Securities Exchange Commission