SEC issues simplified procedural rules for corporate cases

THE Securities and Exchange Commission (SEC) has issued updated procedural rules governing all administrative and adjudicative proceedings before its departments and offices.

SEC Memorandum Circular (MC) No. 8, Series of 2026, replaces the 2016 Rules of Procedure by incorporating updates from laws such as the Revised Corporation Code and the Securities Regulation Code to streamline administrative and adjudicative processes.

The 2026 rules cover both administrative cases, such as violations with penalties, and adjudicative cases, including rights disputes.

They apply to proceedings before operating departments — including the Company Registration and Monitoring Department for corporate name changes and dissolutions, and the Enforcement and Investor Protection Department for market manipulation and insider trading — as well as extension offices and special hearing panels (SHPs), except where special laws provide otherwise.

According to the circular, unless expressly authorized by the relevant departments, all subsequent pleadings and submissions must be filed electronically through official SEC e-mail or other Commission-recognized channels.

Electronically filed documents must include digital signatures compliant with the Rules on Electronic Evidence and be submitted in Portable Document Format (PDF).

“The date of electronic transmission shall be deemed as the date of filing and transmission,” the memorandum noted.

Under the new rules, only petitions, answers, and directed pleadings are allowed. Items such as motions to dismiss (except on jurisdiction or prescription grounds), extensions, postponements, replies, and rejoinders are prohibited and will be expunged if filed.

The memorandum also allows SEC departments, regional offices, or special panels to issue cease-and-desist orders (CDOs) on their own or following complaints, without prior hearings, when conditions under laws such as the Securities Regulation Code, Revised Corporation Code, or Financial Consumer Protection Act are met.

“The CDO shall be immediately executory upon its issuance and shall remain effective until the same is lifted, through an order, by the Operating Department, Extension Office or SHP that issued the same,” the MC read.

Affected parties may file a Motion to Lift with the relevant Operating Department, Extension Office, or SHP after receipt or website posting. Decisions on such motions may be appealed to the Commission en banc.

“No motion for reconsideration of the resolution on the verified Motion to Lift shall be allowed. The Resolution denying the Motion to Lift may be appealed to the Commission En Banc within fifteen (15) days from receipt thereof.” — Alexandria Grace C. Magno