Pre-need firms twit SEC

Pre-need companies, slighted by the Securities and Exchange Commission's (SEC) lack of interest in their proposals, now want to be left alone.

This decision of the Philippine Federation of Pre-need Plan Companies Inc., was the result, they said, of SEC's lack of courtesy by ignoring their numerous position papers in response to the commission's circulars affecting the multibillion peso industry.

"You will, therefore, realize our frustration and disappointment that our agency does not even bother to advise us or reply to us regarding our position papers, proposals, or requests," said Eliseo Dizon, president of the pre-need group.

Dizon also expressed his disgust over the SEC's insensitivity in issuing circulars and policies without consulting them.

Among the SEC-issued memorandum circulars vehemently opposed by pre-need companies recently were the ones concerning: 1) the new paid-up capital of P100 million for both old and new players; and 2) the investment portfolio mix for trust funds of pre-need companies.

This display of arrogance, he said, is ironic considering that SEC itself once acknowledged the group's contribution, roughly 30 percent, to its annual revenues estimated at around P800 million.

Dizon even singled out a move by SEC to make pre-need agents purveyors of mutual funds, insurance, and other financial packages and at the same time, turn pre-need firms into distributors of foreign financial product groups.

"We did not establish pre-need companies to become distribution network of products of foreign companies," he reasoned out.

Dizon said he did not take kindly to insinuations that pre-need plans have not been fair to the buyer in an attempt to restructure the product by "reducing agents' commissions, requiring prospectus to show the rate of return, providing the ‘free look’ for the buyers under the guise of fairness."

"Fairness compared to what?," Dizon asked.

Although foreign in origin, he said, pre-need plans found their way into the Philippine market and have been regarded as Filipino innovation which has been copied by foreigners.

Big multi-national companies, he added, seeing the profitability of the business, set up their operations here like American International Group, CMG from Australia, Berkley International Plans, Manulife Financial Plans and Sun Life Plans.