SEC Updates Rules on Beneficial Ownership Disclosure

The Securities and Exchange Commission (SEC) has issued Memorandum Circular No. 15, Series of 2025, introducing key updates to the beneficial ownership disclosure framework. 

A Beneficial Owner is defined as a natural person who owns or exercises effective control over a corporation. Only natural persons shall be recognized as beneficial owners. The SEC has provided nine categories (A through I) for determining control. Category A now explicitly requires the identification of natural persons who directly or indirectly own at least twenty percent (20%) of the voting rights, shares, or capital of the entity.