THE SECURITIES and Exchange Commission (SEC) has approved the application of DragonFi Securities, Inc. as a personal equity and retirement accounts (PERA) administrator, expanding the number of accredited entities.
The application was approved during the commission en banc meeting on Dec. 18, subject to compliance with remaining requirements, the SEC said in an e-mailed statement on Thursday.
DragonFi Securities is the stock brokerage arm of Sia and Caktiong-led property developer DoubleDragon Corp.
It is the first PERA administrator application approved by the SEC following the issuance of SEC Memorandum Circular (MC) No. 14 on Sept. 19 last year, which contained guidelines on the accreditation of PERA market participants.
“This approval is a significant step towards empowering Filipinos to secure their financial future while easing fiscal pressures on the government in the long run,” SEC Chairperson Emilio B. Aquino said.
“We issued MC 14 last September, recognizing the potential of our pension system to broaden public participation in corporate value creation and strengthen the capital market,” he added.
PERA refers to a voluntary retirement saving program on top of existing retirement benefits from the Social Security System, Government Service Insurance System, and employer-sponsored plans.
Created under Republic Act No. 9505 or the PERA Act, the program offers tax benefits not provided in other retirement investment products, urging more Filipinos to save.
The SEC guidelines provide that a PERA administrator should keep at least P100 million in net worth at all times; adopt and comply with a corporate governance manual; and have an organizational plan for personnel involved in PERA administration functions.
A PERA administrator should also have adequate systems and technological capabilities, technical expertise, and personnel to administer all PERA investment products.
“The PERA administrator must also have sufficient personnel who have undergone the requisite training prescribed or approved by the commission to educate PERA contributors on the nature of a PERA and the requirements, risks, and benefits of the investment product, among others,” the SEC said. — Revin Mikhael D. Ochave
