BIZ BUZZ: Arthaland hit with SEC fine

Even fixing a mistake did not spare Arthaland Corp. from paying the price.

The boutique property developer disclosed that it has paid a P746,616.79 fine imposed by the Securities and Exchange Commission (SEC) over errors in its 2024 consolidated audited financial statements, specifically in its cash flow reporting.

According to the company, it had already corrected the mistake by restating its 2024 statement of cash flows in its 2025 consolidated audited financial statements. But the SEC said the revision did not erase the original offense.

In its notice, the regulator said that “the correction of such errors through restatement or reissuance of the financial statements does not exonerate” the company from penalties arising from material misstatements in the original filing.

The fine stemmed from a violation of the Revised Securities Regulation Code Rule 68, which governs financial reporting by publicly listed firms. Arthaland said it settled the penalty on July 27 and attached proof of payment to its disclosure.

The case serves as a reminder that for listed companies, correcting financial statements may improve the accuracy of disclosures, but it does not necessarily wipe the slate clean once regulators determine that the original filings contained material errors.

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