This time, the ax falls on Permanent Plans
The company of the pre-need industry's most vocal advocate admitted Tuesday that it is in financial trouble.
In a statement, Permanent Plans president Juan Miguel Vazquez said, "Permanent Plans no longer believes in the viability of the Preneed Pension Industry as currently set up and given the adverse operating environment it finds itself in."
Gerard Lukban, spokesperson of the Securities Exchange Commission (SEC), confirmed with ABS-CBN News that the pre-need industry's regulator has suspended the dealers' license of Permanent Plans. Pre-need companies need to comply with SEC documentary requirement before they are granted dealers's license, or the permit to sell new plans.
Lukban said Permanent Plans proposed to pay their obligations to their plan holders not with cash but through an "alternative settlement." Lukban said this "alternative" includes properties which "the SEC did not approve."