The Securities and Exchange Commission (SEC) has expanded the types of entities that can be accredited as Personal Equity and Retirement Accounts (PERA) Administrators following its approval of the first administrator under its new regulation.
SEC Memorandum Circular (MC) No. 14, Series of 2024, provided guidelines on the accreditation requirements of PERA Market Participants, expanding the categories of eligible entities to include securities brokers, investment houses, and investment company advisers or fund managers.
Under this new regulation, the Commission En Banc approved the application of DragonFi Securities as a PERA administrator, subject to the company's compliance with certain remaining requirements.
“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,” SEC Chairperson Emilio B. Aquino said.
He added, “this approval is a significant step toward empowering Filipinos to secure their financial future while easing fiscal pressures on the government in the long run.”
PERA is a voluntary retirement savings program available to the public in addition to existing retirement benefits from the Social Security System, Government Service Insurance System, and employer-sponsored plans.
Established under Republic Act No. 9505, or the PERA Act of 2008, the program offers contributors tax benefits not available in other retirement investment products, encouraging Filipinos to save for their future.
Under the guidelines, a PERA administrator must maintain a net worth of at least P100 million, adopt and fully comply with a Manual of Corporate Governance; and provide a clear and sufficient organizational plan or structure of its personnel who will perform PERA administration functions.
It must also possess adequate systems and technological capabilities, as well as the necessary technical expertise and personnel to administer all types of 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.