Securities and Exchange Commission

Dear Ms. Ronalie

This refers to your request with the following statement:

"I would like to know the number of complaints against LCs/FCs that were refused by the SEC due to the arbitrary requirement that complainants communicate with the suspect LCs/FCs before filing a complaint.

In many instances, the complainants have been told by authorities to stop communicating with the LCs/FCs because the LCs/FCs are under investigation for criminal acts - such as money laundering - and therefore bi-lateral communications could jeopardise criminal cases.

Under what authority does the SEC make this requirement? Was it approved by the SEC through appropriate rule making?"

Please note that the information you are asking for is privileged as this is part of the Commission's proceedings and are considered confidential. I invite your attention to Sec. 2-4, Part II, Rule II of the 2016 Rules of Procedure of the Securities and Exchange Commission which provides that any information, document or records obtained by the Commission in the course of any investigation or examination shall be confidential in nature. As such, details as to the complaints, investigation and proceedings appurtenant thereto are exempted from the coverage of the FOI program. Further to this, kindly share with me, or email our cgfd_md@sec.gov.ph, any instance that your complaint was "refused" by SEC so we can find out what happened to your complaint and we can properly attend to it.

Also, kindly share with us the information you mentioned in your e-FOI request that there are authorities that told you to stop communicating to LCs and FCs. Please enlighten us on this so we can look into the policy of other government agencies in contacting the complained entity or person. In this light, I am again inviting you to email our cgfd_md@sec.gov.ph to file your complaint or better to provide your most convenient time to have a meeting to address your concerns on lending and financing matters and SEC's regulations. Once you email us, we can send you the zoom meeting link and meet you and discuss your concerns.

As to your question on the requirement to provide proof that the complainant has reached out to the company if this was approved, the answer is in the affirmative as the SEC does not post any instructions or notices in our website without the proper observance of protocols and approval process.  Anyway, even if the requested proof is not provided, we still reach out to the complainant to allow him or her to explain if this requirement cannot be provided, especially if the the complaint involves harassment.  

I hope this answered your question. In light of the foregoing, may I again invite you to email our cgfd_md@sec.gov.ph account and provide your best available time to meet us. We are eager to meet you and learn your concerns in a more productive discussion.

Thank you.