Regulatory Alerts2019-08-06
MC No. 17 s.2019 – Revised Guidelines on Securities Deposit of Branch Offices of Foreign Corporations
The Securities and Exchange Commission issued Revised Guidelines mandating that branch offices of foreign corporations licensed in the Philippines deposit securities to ensure they can settle local obligations. The rules specify a P500,000 initial deposit, require additional deposits based on gross income thresholds or market value decreases, and define acceptable security types and deduction procedures. The circular also outlines procedures for substitution, partial release, and return of deposits, while establishing fines and penalties for non-compliance.
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