SEC To Include More Scam Safeguards in Recent Reforms

The Securities and Exchange Commission (SEC) last week said it will make positive reforms such as automated processes, a mediation service to protect minority shareholders, and a crackdown on investment scams. In addition to the automation, the SEC will also strengthen its program against investment scams and the Capital Market Development Plan (CMDP) and finally, organizational enhancement. The SEC intends to fully automate procedures to allow corporations to register and file required submissions online and complete such processed within one day. Online payment methods will also be offered. The SEC will lobby to keep revenue only from fees and charges, not from penalties, which is an adopted practice in some other countries. This proposed amendment to the Securities Regulation Code would further provide the SEC with the power of disgorgement. This will allow the commission to fine or cause the forfeit of amounts pocketed by companies found in violation of the rules. In line with its ongoing efforts to protect investors, the SEC has expanded its presence across the country with the establishment of more satellite and regional offices.