Regulatory Alerts2023-09-19
SEC MC No. 14, Series of 2023 Proposed Amendments to Annex C of Rule 12 of the Securities Regulation Code
The Securities and Exchange Commission issued Memorandum Circular No. 14, Series of 2023 to amend Annex C of Rule 12 of the Securities Regulation Code regarding non-financial disclosure requirements. The amendment specifically modifies the section on the description of business by requiring registrants to discuss major risks involved in their operations and those of their significant subsidiaries. It further permits companies to voluntarily include disclosures detailing the procedures used to identify, assess, and manage these identified risks.
SEC Memorandum Circular No. 14 Series of 2023 TO : ALL CONCERNED SUBJECT : AMENDMENTS TO ANNEX C OF RULE 12 OF THE SECURITIES REGULATION CODE The following provisions of Annex C, Rule 12 of the Securities Regulation Code (SRC) are hereby amended as follows: NON-FINANCIAL DISCLOSURE REQUIREMENTS PART I BUSINESS (A) Description of Business. x (2) Business of Issuer: This section shall describe in detail what business the registrant does and proposes to do, including what products or goods are or will be produced or services that are or will be rendered. (a) Description of Registrant Briefly describe the business of registrant and its significant subsidiaries and include, to the extent material to an understanding of the registrant: x (xv) Discuss the major risk/s involved in each of the businesses of the company and subsidiaries. The Company may include disclosure of the procedures to identify, assess, and manage such risks. x Published: Philippine Daily Inquirer, 21 September 2023 Business World, 21 September 2023 Filed with UP Law Center: 21 September 2023