Section 53Sec./Art. 53

Administrative Sanctions. (a) The Commission, after proper notice and hearing, may impose any or all of the sanctions provided in subparagraph (b) of this section for the following offenses: (1) the making of any untrue statement of a material fact in a registration statement, information brochure and its supporting papers and other reports required to be filed with the Commission; (2) the failure to disclose any material fact required to be stated therein; (3) the refusal to permit any lawful examination into its affairs; and (4) any violation of this Code or its implementing rules and regulations.

(b) The imposition of the foregoing administrative sanctions shall be without prejudice to the filing of criminal charges against the individual responsible for the violation:

(1) Cease and Desist Order. - The Commission may, motu proprio or upon verified complaint by any party, issue a cease and desist order (CDO) against any pre-need company upon proof, after due notice and hearing, of violation of any provision of this Code: Provided, That such CDO may be issued ex parte if the violation is clearly apparent, injurious to a number of planholders and requires immediate intervention by the Commission. The CDO shall specifically enjoin the pre-need company from performing certain activities and shall impose fines and state the required remedial actions. All proceedings before the issuance of the CDO shall be confidential;

(2) Suspension of License. - The Commission shall issue a suspension order against the pre-need company if it fails to comply with the CDO within thirty (30) days from issuance thereof;

(3) Revocation of License. - The Commission may issue a revocation order of the license of the pre-need company under suspension for a period of ninety (90) days;

(4) A fine of not less than Ten thousand pesos (P10, 000.00) nor more than One million pesos (P1, 000,000.00) plus not more than Two thousand pesos (P2, 000.00) for each day of continuing violation;

(5) Disqualification from being an officer, a member of the board of directors or principal stockholders of a pre-need company; or

(6) Other penalties within the power of the Commission under existing laws.

(c) The unauthorized sale of pre-need plans shall subject the issuer to a fine as follows:

(1) First violation - thirty percent (30%) of the aggregate gross pre-need price of the plans sold;

(2) Second violation - forty percent (40%) of the aggregate gross pre-need price of the plans sold; and

(3) Third violation - suspension or revocation of license.

Failure to pay fines within three (3) months from receipt of notice to pay will cause the Commission to issue a suspension order.