SEC 'deemed approved' rule kicks in

The Securities and Exchange Commission (SEC) is enforcing strict timelines for its processing of substantially all types of applications, with a “deemed approved” policy for requests left unattended beyond the prescribed period.

- By JAMES A. LOYOLA

The landmark move to improve service delivery and reinforce its commitment to ease of doing business is outlines in Memorandum Circular No. 7, Series of 2025, titled “Affirming the Commission’s Commitment to Ease of Doing Business, and Providing for Strict Timelines in the Processing of Applications and the Guidelines for Applications Deemed Approved.”

The new policy sets clear and enforceable turnaround times for applications for permits, licenses, registrations, certificates, clearances, and other authorizations, subject to a limited list of exclusions.

"I said on Day One that I wanted the SEC to be known not only as a good regulator, but as a good facilitator of doing business,” said SEC Chairman Francis Lim, quoting from his inaugural address to SEC employees when he assumed office on June 10, 2025.

He noted that, “This policy breathes life into that promise — we are removing bottlenecks, eliminating unreasonable delays, and imposing discipline in our internal processes to give entrepreneurs and investors the level of responsiveness and certainty they deserve.”

Under the circular, simple applications must be processed within three working days while complex applications requiring evaluation or coordination must be resolved within seven working days