The Securities and Exchange Commission (SEC) is overhauling its rules of procedure to streamline administrative and adjudicative proceedings, aiming to enhance the regulatory environment and accelerate case resolution.

The Commission on Dec. 5 released the draft 2026 Rules of Procedure (ROP) for public comment that seeks to amend the current 2016 ROP by consolidating and simplifying the total number of rules to 17 across 86 sections, down from 27 rules and 108 sections.

The draft rules integrate recent statutory developments, including the Revised Corporation Code of the Philippines (RCC) and the Financial Products and Services Consumer Protection Act (FCPA), among other relevant laws.

The proposed rules prioritize a shift to "Electronic First" Filing and Service, institutionalizing filing and service via email as the primary mode. This includes using the official email addresses designated by corporations under SEC Memorandum Circular No. 28, Series of 2020.

The rules also expand alternative service modes, such as publication on the Commission’s website, to ensure due process when parties are elusive. The simplified summons process and robust electronic filing system are expected to drastically reduce paper costs, logistical delays, and administrative burden in line with global digital standards.

The draft rules introduce specific measures to shorten proceedings and prevent delays:

Motions for reconsideration are generally prohibited at the Operating Department level—whether in administrative or adjudicative actions—and may only be filed against judgments or resolutions issued by the Commission En Banc.

A new rule on Case Conference and Subpoena consolidates provisions for case conferences, subpoenas, and inspection orders, establishing specific sanctions for non-compliance to strengthen enforcement.

A new rule on Judicial Notice allows the Commission to take administrative notice of records already within its custody, enhancing transparency and efficiency.

By limiting motions and allowing judicial notice of internal records, the SEC aims to significantly reduce the aging of cases and improve the timeliness of their resolution.

The proposed rules significantly expand the scope and authority of enforcement actions the SEC can undertake.

For Cease and Desist Orders (CDOs), the rules integrate the Commission’s power to issue CDOs across the Securities Regulation Code (SRC), the RCC, and the FCPA. Under the RCC, ex parte CDOs are valid for 20 days against fraudulent acts or those causing imminent danger to public safety. Under the SRC, ex parte CDOs are limited to 10 days. The FCPA authorizes CDOs without prior hearing against financial service providers for fraud or grave injury to consumers.

The draft rules define specific orders as immediately executory, including CDOs, suspension/revocation of secondary licenses, takeover orders, and decisions directing the calling of a regular meeting or election of officers.

The procedure for Settlement Offers pursuant to Section 55 of the SRC is formalized, clearly delineating the roles of the SEC Enforcement and Investor Protection Department (EIPD) in evaluating offers and the Commission En Banc in approving them.