This developed after the pre-need group, embittered by the agency’s perceived lack of attention to its needs, asked the SEC to allow it to be regulated instead by the Insurance Commission.
SEC Chairman Lilia Bautista, although unmindful of the pre-need firms’ desire to be left alone by the agency, lamented that the pre-need group has misread the agency, saying that the commission has always consulted pre-need firms before implementing policies concerning the sector.
Bautista cited, for instance, the group’s complaint about SEC’s memorandum-circular raising the paid-up capital of pre-need firms to P100 million which, she said, was brought to the attention of the federation beforehand.
"Before the issuance of this circular, the representatives of the federation was informed in one of the meetings held that the commission would like to increase the paid-up capital to P100 million," she said.
"It does not follow that because you are not in favor of increasing the paid-up capital of existing companies to P100 million, the SEC can no longer issue the circular," Bautista added.
As for SEC’s memorandum-circular concerning investment portfolio mix to trust funds of pre-need firms, Bautista maintained that the pre-need group was also given time to comment on it.
"It has been emphasized in one of the meetings with the federation representatives that any investment outside of the circular may be allowed subject to prior evaluation and approval by the commission," she pointed out, adding that this policy was thoroughly explained by the SEC.
Bautista intimated that the pre-need group, whenever unable to get what it wants from the commission, simply opposes any move the SEC makes.
She cited the case of the omnibus circular which the pre-need industry criticized.
Of course, some of the components of the circular may not be in accordance with your request or not included in your letter. However, after analyzing the issues raised in that letter, the commission came out with a circular," she said.
"Again, please erase the impression that because you are not in favor with some components of the circular, you will again say that SEC issued the circular without consultation," Bautista added.
Bautista also underscored that the pre-need group’s proposal to be regulated by the Insurance Commission has, in fact, been based on the "agency’s lack of actuaries and financial constraint," adding that the "New Securities Code, hopefully, will enable us to hire actuaries and needed personnel."
Bautista also told the pre-need group that its contribution to the SEC’s annual income is only eight percent, not 30 percent, but nevertheless, acknowledged the significant contribution of the industry to the agency.
It will be recalled that the PFPPC earlier asked the commission to allow it to be regulated by the Insurance Commission after accusing SEC of bypassing it in issuing circulars without their knowledge and consent.
The pre-need group also blamed the miseducation of the public concerning the realities in the multi-billion peso industry on the agency’s lack of responsibility in correcting erroneous media reports on the management of its finances.
"Our feedbacks from various sources indicate that the pre-need industry will have better or positive perception if placed under Insurance Commission regulation, although it has also been our observation that the pre-need industry started getting positive perception because of recent regulation issued by SEC," said Eliseo Dizon, the pre-need group’s president.