YPS

In a radio interview today, a representative of the Securities and Exchange Commission (SEC) Lawyer Gerard Lucban, seemed to hedge his bets when asked (by the radio talk show hosts Anthony Taverna and Gerry Baja) why the SEC could not just release a list of the Pre need companies that have shaky finances. He did so by saying that should anyone want to buy a pre need plan, they should first come to the SEC and they would more than willingly SHOW THEM the financial statements of the company/ies in question. This is strange considering Atty Lucban had already admitted to knowing that there were twenty nine preneed companies already on shaky ground.

Speaking for myself, I still find it hard to read a financial statement. Considering that many people that buy pre need plans may be in the same boat as I am, the SEC might as well be presenting the prospective buyer Egyptian hieroglyphics.

A quick peek into the SEC website reveals its MISSION STATEMENT (bold characters mine):
MISSION: To strengthen the corporate and capital market infrastructure of the Philippines, and to maintain a regulatory system based on international best standards and practices, that promotes the interests of investors in a free, fair and competitive business environment. We shall be guided in this mission by the values of Integrity, Professionalism, Accountability, Independence and Initiative.

In my mind, promoting the interests of the investors does not mean merely keeping the documents for public viewing. It should also be able to offer interpretation that can look deeper into a financial statement and interpret it for us mere mortals that have a poor grasp of the accounting dialect.

Also in the context of a free, fair and competitive business environment, the SEC website already includes a list of companies that have been approved as dealers (http://www.sec.gov.ph/ see PRE NEED DATA on Home Page) and in the interview, the SEC representative already mentioned that theres are already twenty nine pre need firms currently in trouble. In the spirit of its mission, why they cannot the SEC red flag these companies in web and other media publications?

As long as it presents factual data then it fulfills its mission parameters.

This would not only benefit the consumer but would emphasize the companies that remain financially solid and sound.
Considering that it is the less liquid component of society that is gravely affected when a preneed company goes under it should fall under the SEC's mandate to warn the public of potential collapses. Otherwise the preneed industry promises to become nothing more than a sophisticated PONZI scheme that builds on the fast talking sales person and the burning desire of the average Filipino to see their children through the complete educational process.