The Department of Finance (DOF) and the Securities and Exchange Commission (SEC) said they are working jointly to develop the domestic capital markets further to improve the ease of doing business for investors in the country.
The DOF said on Sunday Secretary Ralph Recto and newly appointed SEC Chairman Francis Lim met on June 23 to discuss the Marcos administration’s renewed push to enhance the competitiveness of the Philippine capital markets and ensure the smooth entry of investment into the country.
Lim reaffirmed at the meeting the SEC’s commitment to the proper implementation of the Ease of Doing Business Act by developing a real-time application tracking system to enhance transparency and reduce the need for client follow-ups.
The SEC also pledged to review its schedule of fees to lower the cost of obtaining digital and hard copies of requested documents, and impose a moratorium on fee increases for a specified period to improve client experience and satisfaction.
For the short term, the SEC will pursue reforms to broaden market access, such as simplifying registration procedures for small and medium enterprises and opening the repurchase market to non-bank financial institutions (NBFIs), the DOF said.
The SEC will, likewise, strengthen its supervisory framework to ensure compliance with truth-in-lending disclosures, fair lending standards and the prohibition of abusive collection practices.
The DOF said these measures will promote responsible market conduct and safeguard consumer welfare.
To deepen the bond and securities markets, the SEC said it aims to do the following: enhance capital market regulatory frameworks by clearly differentiating equity and debt regimes to streamline approval processes; updating rules on credit rating agencies to boost credibility and market depth; and aligning short selling and securities lending practices with global standards.
It will also revise the implementing rules and regulations of the Real Estate Investment Trust framework to better respond to market needs, the DOF said.
To promote collaborative governance between the public and private sectors, the SEC will prioritize reforms to the Capital Market Development Council and engage key business groups to assess public perception.
For the medium- to long-term, the SEC will increase the visibility and availability of Philippine securities on the global market by pursuing regulatory reforms to improve the eligibility of local corporations for global indices, the DOF said.
The SEC will also develop a roadmap for alternative investment products and derivatives, including options, futures and a potential commodity futures market, to enhance risk management and expand investment options.
To align with international best practices, the DOF said the SEC will reinforce its oversight of corporate governance, market conduct and investor protection through risk-based audits, enhanced digital monitoring tools and continuous institutional capacity building.
The SEC, an attached agency of the DOF, is mandated to protect investors, ensure fair and efficient markets, and facilitate capital formation by registering corporations and securities, supervising market participants and enforcing securities laws.
Among the SEC’s priorities is the rollout of the Capital Markets Efficiency Promotion Act, recently signed into law. The landmark measure seeks to broaden investor participation and reduce friction in market transactions.
The SEC is also tightening oversight of crypto asset service providers to protect consumers from systemic risks, ensure regulatory compliance and promote trust in emerging digital financial ecosystems.
