First PERA Administrator Accredited Under New Rules

The Securities and Exchange Commission (SEC) has expanded the pool of accredited Personal Equity and Retirement Account (PERA) administrators by approving the first administrator under its revised regulations.

The approval follows SEC Memorandum Circular No. 14, Series of 2024, which outlines updated accreditation guidelines for PERA market participants.

These guidelines allow securities brokers, investment houses, and investment company advisers or fund managers to register as PERA administrators.

During its December 18, 2024, meeting, the Commission En Banc rendered effective the application of DragonFi Securities Inc. as a PERA administrator, subject to the company meeting remaining compliance requirements.

“We issued MC 14 in September to recognize the potential of our pension system to enhance public participation in corporate value creation and bolster the capital market,” SEC Chairperson Emilio B. Aquino said.

“This approval is a significant step toward empowering Filipinos to secure their financial future while reducing fiscal pressures on the government in the long run,” Aquino added.

PERA is a voluntary retirement savings program established under Republic Act No. 9505, or the PERA Act of 2008.

It supplements existing retirement benefits from the Social Security System, Government Service Insurance System, and employer-sponsored plans.

The program offers contributors tax benefits unavailable in other retirement investment products, encouraging long-term savings.

The guidelines require PERA administrators to maintain a minimum net worth of PHP 100 million at all times and adopt a Manual of Corporate Governance. T

hey must provide a clear organizational structure for personnel tasked with PERA administration and demonstrate adequate systems, technological capabilities, and expertise to manage PERA investment products.

Administrators must also employ staff trained in SEC-approved programs to educate contributors about the nature of PERA, its benefits, risks, and investment requirements.