Business is on a standstill for 33,000 sales agents of the College Assurance Plan (CAP) as they wait for the lifting of the suspension of its dealership license that expired on September 30.
“[Sales agents] work on a sales-commission basis,” said Bobby Café, CAP’s first vice president. “It’s a pity that CAP’s suspended status means a temporary cutoff of sales agents’ earnings.”
A Parañaque-based sales agent, who asked not to be named, said he and his colleagues are on standby. However, they are expecting to resume business by mid-November.
Sales agents working for CAP generate no fresh income except for the funds collected from the payments of existing subscribers that availed of the educational plans before the Securities and Exchange Commission (SEC) halted the transactions.
CAP was supposed to have submitted to the SEC on October 31 an official subscription that would renew its license to sell plans.
Included in the requirements is the application for an increase in capitalization to accommodate the investments of Romeo Roxas’ P6-billion property infusion and Fil-Estate Property Inc.’s P600,000-worth of property outlay in CAP’s trust-fund assets.
Benito A. Cataran, director of SEC’s Company Monitoring Registration Department, said his office had received CAP’s application for increase in capital.
Cataran said the commission has tagged more than P15 million to be paid by CAP, the country’s oldest educational preneed company, an amount that is the appropriate charge to its intention of upsizing its current P300-million capital to P8 billion.
An industry source, however, said that SEC has not yet officially accepted CAP’s application owing to some deficiencies it has yet to tackle with.
These deficiencies, the source said, include lack of deed of assignment for some of the land titles that will be transferred to CAP as well as absence of the stamp of primary entry from official registrars.
“[In the deed of assignment] some land titles do not contain the registered name of the particular investor coming in,” source said. “However, they have already attached a deed of sale. Naturally, the name of the transferor should be there.”
The source pointed out that the investor’s name is not the name registered in some of the land titles that CAP has presented to the commission.
The cash strapped preneed has to first fix the problem before the SEC could give a nod on the increase in capital.
The source added that “[CAP] also has no primary entry. The deed of primary entry is yet to be officially stamped by the registry.”
CAP had announced that its shareholders have approved the subscription agreement entered into by the group, led by Roxas‚ that includes Greensquare Property Corp. and Green Circle.
— Karen A. Capino