Vol. XXII, No. 118-A
Saturday, January 17, 2009 | MANILA, PHILIPPINES
Banking & Finance
3 pre-need firms close unilaterally
The Securities and Exchange Commission yesterday said three pren-eed firms have stopped operations without its approval, calling on all plan holders to immediately file claims.
The corporate watchdog said on its Web site that Legacy Consolidated Plans, Inc., Scholarship Plan Phil., Inc., and All Asia Plans Corp. have unilaterally ceased operations.
"The commission urges the plan holders of the said pre-need companies to file on or before March 2009 their sworn complaint with the non-traditional securities and instruments department," the notice dated Jan. 15 read.
Last month, Legacy Consolidated and Scholarship Plans filed petitions for voluntary dissolution with eight other preneed firms. Legacy Consolidated, which has the same owner as the group of rural banks that recently shut down operations, blamed poor economic conditions.
The SEC has relaxed some rules covering the pre-need sector after the Federation of Pre-need Companies of the Philippines warned that the industry could collapse without help from regulators. The group had blamed the cost of servicing old plans with high interest rates as well as the economic slowdown.
The commission said the closed firms should have established a trust fund to cover claims of plan holders.
"Please be informed that the commission has taken all the necessary actions under the circumstances to ensure the preservation of the existing funds of the said companies so that their proceeds can be used to pay only for legitimate claims," the letter said. — Don Gil K. Carreon
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