The Securities and Exchange Commission (SEC) has issued amendments to implementing rules and regulations of the Investment Company Act. This was resolved in a meeting with full judiciary authority dated January 24, 2019.
Independent accountants shall observe the principles on the expectation for an effective audit function.
They shall also perform the audit of financial statements of the Investment Company, Fund Managers, and Fund Distributor in accordance with the requirements of the Philippine Standards on Auditing, the Ethical Standards under International Ethics Standard Board of Accountants (IESBA) Code of Ethics for Professional Accountants, and the relevant regulatory issuances of the Commission.
Independent auditors should also report to the commission any non-compliance by the Investment Company, Fund Manager, Fund Distributor with their contractual and regulatory requirement, based solely on the matters discovered from performing the audit.
Securities of Exchange and Commission has been unceasingly improving corporate governance efforts by being more strict with the rules governing companies and tapping third parties such as independent auditors to help them in their regulatory function.