THE Securities and Exchange Commission (SEC) on Friday explained how microfinance non-government organizations or NGOs can be accredited under Republic Act No. 10693 or the Microfinance NGOs Act following the recent signing of its implementing rules and regulations (IRR).
The new law, which seeks to engage microfinance NGOs to promote pro-poor financial and credit services, provides for the formation of a Microfinance NGO Regulatory Council.
The council has the power to accredit, monitor, conduct inspections, and even revoke certifications of microfinance NGOs to uphold standards in the audit of account books, records and papers of the NGOs.
In a statement on Friday, the SEC said that to be accredited, microfinance NGOs should have at least a P1-million capital contribution and should primarily be implementing a microenterprise development strategy and providing microfinance programs, products and services for the poor.
These accredited microfinance NGOs are eligible to avail of a 2-percent preferential tax treatment based on receipts from microfinance operations only such as lending and insurance commissions, the SEC said.
It added that these accredited microfinance NGOs should have at least any of the programs, products or services related to 1) microcredit and financial literacy programs, and 2) microcredit and capital build-up (CBU) or microsavings.
The SEC said it recently signed the Microfinance NGO IRR with other agencies involved such as the Department of Finance, Department of Trade and Industry, and the Department of Social Welfare and Development.
It added that its Corporate Governance and Finance Department (CGFD) is the one providing technical and administrative support to the Microfinance NGO Regulatory Council.
The IRR of the Microfinance NGO Act can be accessed through the SEC’s website, www.sec.gov.ph.