An SEC official said there are several issues that need to be addressed with respect to PPI’s request considering that Lifetime’s registration certificate has already been revoked. "With the revocation of Lifetime’s license, the company is now non-existent. So the company would have to reapply for a license to sell pre-need plans. But then there’s another issue: whether Lifetime’s license could also be automatically transferred to PPI with the SEC order directing all assets of Lifetime be transferred to PPI," the SEC official said.
The same official said should the SEC decide to require Lifetime Plans to reapply for a license, Pacific Plans would need to comply with the trust fund, capitalization and liquidity requirements.
The SEC earlier junked the motion for reconsideration filed by Lifetime Plans for lack of merit. It pointed out that Lifetime had been given more than enough time to comply with the conditions set forth in the approval of its registration.
Among these conditions is the submission of proofs of collection of receivables and the transfer of ownership of transportation equipment from Pacific Plans.
Submissions made by Lifetime, however, were found to be insufficient by the SEC’s Company Registration and Monitoring Department (CRMD). The SEC said while the revocation of Lifetime’s certificate of registration would adversely affect the pre-need firm’s sales agents, employees and customers, the commission has no choice but to enforce the law.