The Securities and Exchange Commission (SEC) said Monday it has adopted a “deemed approved” policy, automatically approving business applications not acted upon within set timeframes.
The move is part of the SEC’s broader effort to improve efficiency and promote ease of doing business in the country.
Under Memorandum Circular No. 7, Series of 2025, issued on July 10, the SEC introduced strict processing timelines for nearly all types of applications.
The SEC said that if the commission fails to act within the prescribed period without issuing a notice of deficiency, the application would be deemed approved, provided all required documents have been submitted.
The circular covers applications for permits, licenses, registrations, certificates, clearances and other authorizations, with limited exceptions.
SEC chairman Francis Lim, in his inaugural speech last month, reported plans to fast-track the approval process for applications filed with the SEC.
“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,” Lim said.
Under the new processing timelines, simple applications will be processed within three working days, complex applications will be evaluated for seven days, and highly technical applications requiring legal or financial review or inter-agency clearance will be processed within 20 working days.
Approvals under the “deemed approved” rule will still be subject to post-approval evaluation. If an applicant is later found to have submitted false or misleading information or failed to submit necessary documents, the approval can be revoked and administrative penalties imposed.
“This is without prejudice to the right of the public to proceed against applicants in case they suffer damage as a result of the applicants’ false or misleading information or failure to comply with the SEC requirements,” Lim said.
The policy, however, does not apply in cases involving ongoing legal proceedings or investigations, fraud or misrepresentation, force majeure or events beyond control, and applications involving inter-agency processes where delays are not the SEC’s fault.
“We recognize that predictability in regulatory action is vital to the business community, and with this policy, we are saying clearly: the SEC will act and act swiftly,” Lim said.
