New year, new beginnings. As 2024 unfolds new opportunities, the Securities and Exchange Commission (SEC) issued SEC Memorandum Circular No. 22 Series of 2023 to remind real estate investment trust (REIT) companies to start the year with a clean slate. SEC Memorandum Circular No. 22-2023 sets forth the guidelines on the applications for payment of filing fees and annual fees of REIT fund managers and their respective compliance officers, following the Implementing Rules and Regulations of the REIT Act of 2009 and Rule 11, Section 3 of the SEC Memorandum Circular No. 1 Series of 2020.
According to the regulations, the Certificates of Registration of REIT fund managers and their compliance officers are subject to compliance with the qualifications and monitoring requirements of the SEC, including the payment of the required annual fee. Hence, SEC Memorandum Circular No. 22-2023 outlined the following:
1. Filing Fee (upon initial application)
a. REIT Fund Manager – P15,000
b. Compliance Officer – P3,000
2. Annual Fee
a. REIT Fund Manager – 1/2000 of one percent of the total value of the assets of the REIT under management as of Sept. 30 of the current year, as reflected in the Quarterly Report (SEC Form 17-Q); minimum of P30,000 and a maximum of P100,000.
b. Compliance Officer – P1,500
The application for payment of the annual fees shall be in the form prescribed by SEC and to be paid on or before Dec. 31 of each year. For late filing of applications for payment of the annual fee, a 50 percent surcharge will be imposed based on the computed annual fees, and a 100 percent surcharge if filed beyond the succeeding month after the month where the annual fee is due.
Failure to pay the fees mentioned above shall, after notice and hearing, result in suspension or revocation of registration or license. Nevertheless, the SEC has the right to extend the deadline for payment of the annual fee, as it deems fit.
Please be guided accordingly.
Source:
P&;A Grant Thornton
Certified Public Accountants
P&;A Grant Thornton is the Philippine member firm of Grant Thornton International Ltd.