REGULATORY REPORTING

• Regulatory reporting is the submission of data to a relevant

authority in order to demonstrate compliance with the
necessary regulatory provisions. In simpler terms, it is the
process businesses and individuals must continually go
through to show they are following all the rules.

• For regulatory reporting teams worldwide, public trust is the

end game, and transparency is the method of achieving it.
• Regulatory reporting’ is the submission of raw or summary data needed
by regulators to evaluate an organization’s operations and its overall
health, thereby determining the status of compliance with
applicable regulatory provisions.
 FOUR PRIMARY REGULATORY REPORTING GOALS

1.It clearly communicates financial information and explanations.

2.Reporting communicates comprehensive data and commentary that complies with
reporting requirements and addresses possible investor concerns.
3.It provides accurate information on the amount, completeness, and compliance
with reporting requirements and accounting standards.
4.It meets the filing deadlines.
 TO ACHIEVE THOSE GOALS, TEAMS
RELY ON PEOPLE, PROCESSES, DATA
AND TECHNOLOGY.
• People-Led
• Establishing reporting controls and processes, setting milestones and timelines, and
monitoring changes in reporting rules and interpretations, data and commentary
contributors, accounting policy teams, legal experts, investor relations and senior
management play key roles. These roles include assessing and reporting on matters
that might cause inaccuracies or difficulties in meeting deadlines, monitoring legal
actions, staying on top of reporting changes to prepare for investor questions, and
providing final review and approval.
 TO ACHIEVE THOSE GOALS, TEAMS
RELY ON PEOPLE, PROCESSES, DATA
AND TECHNOLOGY.
• Driven by Process
• The best regulatory reporting protocols will self-identify errors, identify proper data
requirements and interpretations, understand how to retrieve the needed data, build
proper documentation, and support practices. All of that relies on implementing an
effective process and procedures.

• Things that should be built into that process: Key milestones, well-communicated deadline
expectations, clear accountability, and safeguards that identify and resolve anything that
might push the reporting process off track, to name a few.
 TO ACHIEVE THOSE GOALS, TEAMS
RELY ON PEOPLE, PROCESSES, DATA
AND TECHNOLOGY.
• Built on Data
• Data integrity, consistency, validation and quality are all key to achieving these regulatory
reporting goals.

• A centralized data warehouse is one way to accomplish the goals. But it can also be costly
and time-consuming to build and maintain. Performing a reconciliation process across
reports and putting the right reviews to spot data inconsistencies also helps ensure data
quality and effectiveness.
 TO ACHIEVE THOSE GOALS, TEAMS
RELY ON PEOPLE, PROCESSES, DATA
AND TECHNOLOGY.
• Fueled by Technology
• Technology can help keep your reporting process running smoothly. It also
facilitates the teamwork and collaboration necessary to keep it going and
ensure your data is efficiently sourced and aggregated every step of the way.

• Technology builds more accurate and efficient reporting, giving contributors

more time to react to rule changes and introducing risk-based controls to
mitigate further errors. It eliminates the chance of manual errors, expands
collaboration, bridges data silos, and accesses and validates data.
 HOW DOES REGULATORY REPORTING WORK?

• 1. Record keeping
• The most common form of reporting. In essence, it involves maintaining
accurately detailed records of every transaction and every process,
ensuring you have clear evidence that you are following protocols to the
letter.
 HOW DOES REGULATORY REPORTING WORK?

• 2. Processes and procedures

• Because the various guidelines and legal requirements tend to be
integrated into the flow of a business’s everyday operation, many
standard practises you don’t think twice about actually act as regulatory
reporting – from explaining your terms and conditions to signing
paperwork.
 HOW DOES REGULATORY REPORTING WORK?

• 3. Handling complaints
• When following any formal procedure, you are following a regulation –
and therefore need to report on it. When you fill out paperwork
involved in handling a complaint, or disciplining a worker, you are
producing a regulatory report.
 HOW DOES REGULATORY REPORTING WORK?

• 4. Onboarding and formalised training

• Any form of onboarding, training or performance appraisal will be
subject to regulation – generally both internal and external. And this
means simply adhering to these guidelines constitutes regulatory
reporting.
 IMPORTANCE OF REGULATORY REPORTING
• Public trust
• With increasing public demands for transparency, following regulation
to the letter is a vital part of creating public trust. By adhering to laws
around fair practise, sustainability and inter-personal ethics,
organisations can gain a positive public reputation.
 IMPORTANCE OF REGULATORY REPORTING
• Internal confidence
• Regulation is vital for maintaining trust within an organisation, and
giving workers the peace of mind that there are clear protocols being
followed which ensure their safety – both physically and legally.
 IMPORTANCE OF REGULATORY REPORTING
• Locating accountability
• It is extremely useful to have strong regulatory reporting available as
data, too. If something goes wrong, regulatory reporting can provide a
useful bread crumb trail to understand exactly what and why something
happened.
 IMPORTANCE OF REGULATORY REPORTING
• Avoiding legal issues
• Primarily though, regulatory reporting is a major legal requirement, and
failing to do it properly can cause serious financial and legal problems
for an organisation or individual. Without the proper evidence of
compliance, litigation is likely and government fines are very possible,
too.
 REGULATORY AGENCIES IN PHILIPPINES
1. Department of Trade and Industry
• The Department of Trade and Industry (DTI) is where single proprietorship enterprises register and secure
their certificate of registration and Business Name.

• A business name (BN) is a name that identifies your enterprise. This will appear on your receipts, business
transactions, or any signs that will advertise your company. You must include the following when
registering your business with DTI.
• Dominant Name. This will be the name of your business once registered with DTI. Other business
applicants will not be able to use your business name in the barangay, city, region, or country, depending
on the scope of the coverage of your location.
• Business Name Descriptor. This will be the descriptive factor of your business, this is essential as this gives
potential customers the opportunity to grasp the idea of what your business offers.
 REGULATORY AGENCIES IN PHILIPPINES
2. Securities and Exchange Commission
• The Securities and Exchange Commission (SEC) is responsible for registering and supervising all corporations and
partnerships organized in the Philippines. Licensing of representative offices and branch offices is likewise under this
agency.
 REGULATORY AGENCIES IN PHILIPPINES
3. Bureau of Internal Revenue
• The Bureau of Internal Revenue (BIR) is the government agency that assesses and collects all national internal revenue
taxes, fees, and all charges. Corporations that seek to do business in the Philippines must register with BIR.
• Registering your business with BIR enables you to do the following:
• Authority to print your official receipts and invoices
• Formally register the Tax Identification Number (TIN) provided for your company in the SEC Certificate of Registration
• Register the books of accounts you are required to annually register with BIR (to serve as an official record of your business
transactions for the fiscal year)
• The Certificate of Registration issued by BIR (BIR Form 2303) contains an enumeration of the types of taxes that are
required to be paid to the government, which includes the following:
• Corporate income tax
• Value-added tax
• Withholding taxes (on compensation, fringe benefits, etc.)
 REGULATORY AGENCIES IN PHILIPPINES
4.Department of Labor and Employment
• The Department of Labor and Employment (DOLE) is the government agency that protects
the rights and welfare of employees working in the Philippines. Enterprises with five or more
employees are required to register with DOLE.
• Moreover, DOLE also handles the issuance of an Alien Employment Work Permit (AEP) for
non-citizens that would like to work in the Philippines.
• As part of starting a business in the Philippines, employers must report their employees to
the right government agencies to ensure the protection of their rights and safety.
• Under the Occupational Safety and Health Standards (OSHS), the protection of every worker
against the dangers of injury, sickness, or death must be prioritized at all costs by ensuring
safe and healthful working conditions.
 REGULATORY AGENCIES IN PHILIPPINES
5.Philippine Health Insurance Corporation
• The Philippine Health Insurance Corporation (Philhealth) is the government
agency that provides health coverage to Philippine citizens such as Filipino
workers, overseas workers, as well as the indigent community.

• Employers are mandated to process an application for fresh graduates or

employees who are not yet registered with PhilHealth. On the other hand,
employees who already have their PhilHealth membership must provide their
Philhealth number to their company to continue their contribution to the said
agency.
 REGULATORY AGENCIES IN PHILIPPINES
6.Social Security System
• The Social Security System (SSS) is the agency where workers in the private sector and self-
employed citizens are assisted upon retirement or unemployment due to disabilities.
Employers are obligated to register with SSS upon hiring their first employee.
• Under Philippine law, employers and employees share a part of the monthly contribution to
be deducted from their payroll. Contribution varies based on a bracket on where the
employee’s salary falls.
• Under Republic Act (RA) No. 8282, all employees in the private sector must apply with SSS to
ensure protection for workers and their families. SSS contributions depend on the monthly
salary of the employee and the computed contribution amount will be shared by both the
employee and the employer.
 REGULATORY AGENCIES IN PHILIPPINES
7. Home Development Mutual Fund
• The Home Development Mutual Fund (HMDF), commonly known as the “Pag-ibig fund” is
the government agency that takes care of the house financing of Filipino workers. Pag-ibig
also offers benefits to employees such as loans, access to housing programs, and savings.
• Furthermore, HMDF is also mandated along with SSS and Philhealth, and its contribution is
from both the employer and employee.
• HMDF is a safety blanket provided by the government that provides loans for housing and
emergency purposes. It also ensures that your contributions are yours, and you are allowed
to withdraw them after a certain amount of time.
 REGULATORY AGENCIES IN PHILIPPINES
8. Various Local Government Units
• Registering with the Local Government Unit (LGU) where your business is located is essential before legally
operating. Usually, the license from the LGU is commonly known as the business permit or Mayor’s permit.
• Some cities require you to process a business permit first before registering with BIR. Documentary pre-
requisites such as SEC registration certificate, barangay clearance, contract of lease or real property tax,
and occupancy permit must be submitted
• A business permit is imperative to acquire as this gives you the license to operate. This helps ensure that all
establishments pay their taxes to the local government office where the business is operating.
• All businesses in the Philippines must secure a business permit unless exempted. According to the Local
Finance Circular (LFC) 1-2019, self-employed professionals such as lawyers, doctors, and accountants are
excused from paying business permit fees. Therefore, if your entity is a sole proprietorship, One Person
Corporation (OPC), Domestic Corporation, or Partnership, you must secure the said permit.