SEC: Preneed companies with deficiency can still sell plans

MANILA, Philippines - The Securities and Exchange Commission (SEC) on Wednesday said at least three pre-need companies that have been found deficient could still sell their plans as their dealer’s license have not been revoked. Testifying at the Senate committee of trade and industry investigating the impending collapse of the pre-need industry said, SEC’s Merle Joy Pascual said Coco Plans, Danbil Plans and AMA Plans have trust-fund deficiency, and that the agency is evaluating the companies’ statuses. She said that while Coco Plans and Danbil have submitted their multi-year capital build-up plan to address the problem, AMA is yet to submit its proposal. Pascual said the agency is set to meet with AMA. She said despite the deficiency, the three companies can still sell their plans as their respective licenses are still valid, and that what the three should do is to “fund their deficiency within 20 days. If not, we will suspend their license." At the hearing, Senator Manuel Roxas II rebuked the SEC for allowing the selling of the plans despite the danger that the companies wouldn’t be to put money in their trust funds. “Mas interesado kayong depensahan ang mga kumpanyang ito imbes na ang mga bumibili [You are more concerned about defending the companies than protecting the planholders]," Roxas said. The SEC said the 19 pre-need companies that also have dealer’s license and has no known problems with funds are: Ayala Plans Caritas Financial Plans Cityplans Destiny Financial Plans Eternal Plans First Country Plans First Union Plans Grayline Plans Himlayang Pilipno Plans Loyola Plans Manulife Financial Plans Mercantile Care Plans Paz Memorial Service Philam Plans Provident Plans St Peter Life Plans Sun Life Financial Plans Transnational Plans Trusteeship Plans - Amita O. Legaspi, GMANews.TV