Regulatory Alerts2022-06-09
MC No. 06 s. of 2022 — Extension on the Deadline of Compliance of Paragraphs 5.C. and 5.D. of Part III of the Revised SRC Rule 68 Particularly on the Transition from Sole Practitioner to Partnership Structure and two (2) – Partner Requirement
The Securities and Exchange Commission extends the compliance deadline for auditing firms and sole practitioners to meet the two-partner and partnership structure requirements under Revised SRC Rule 68. This extension, granted due to the impact of the COVID-19 pandemic, moves the final deadline from June 30, 2022, to June 30, 2026. The directive mandates that all SEC-accredited external auditors and auditing firms achieve full compliance by the new date without further extensions.
‘ Securities and Exchange ^ Commission l I P >> t N E S SEC MEMORANDUM CIRCULAR NO. Series of 2022 SUBJECT : EXTENSION ON THE DEADLINE OF COMPLIANCE OF PARAGRAPHS 5.C. AND 5.D. OF PART III OF THE REVISED SRC RULE 68 PARTICULARLY ON THE TRANSITION FROM SOLE PRACTITIONER TO PARTNERSHIP STRUCTURE AND TWO (2)- PARTNER REQUIREMENT WHEREAS, Paragraphs 5. C. and 5. D. of Part III of Revised SRC Rule 68 provides the following: "C. Compliance with the Two (2) Partner Requirement Auditing firms which have less than two (2) partners as of fhe date of the effectivity of this Rule shall be given until 30 June 2022 within which to comply with the new two (2j partner requirement. D. Compliance with the Transition from Sole Proprietorship to Partnership Sole practitioners as of the date of the effectivity of fhis Rule shall be given until 30 June 2022 within which to comply with the requirements to convert to a Partnership structure from Sole Proprietorship in order to continue being accredited by the Commission.” WHEREAS, the Commission received requests from concerned firms and sole practitioners relative to the extension of the deadline of compliance with the above-requirements primarily due to the impact of the COVID 19 pandemic thru the Association of Certified Public Accountants in Public Practice. WHEREAS, finding merit on said requests, the Commission in its Meeting held on 09 June 2022, resolved to EXTEND THE DEADLINE OF 30 JUNE 2022 FOR FOUR (4) MORE YEARS OR UNTIL 30 JUNE 2026 WITHOUT FURTHER EXTENSION requiring all SEC accredited external auditors and auditing firms to comply with the requirements under the Revised SRC Rule 68 on the Transition from Sole Practitioner to Partnership Structure and Two (2) Partner requirement. 6 Published: Philippine Daily Inquirer, 15 June 2022 Philippine Star, 15 June 2022 Filed with UP Law Center: 13 June 2022
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