The Securities and Exchange Commission (SEC) said it is moving to strengthen investor protection and deepen the country’s capital markets through a wide set of reforms aimed at stricter oversight, broader participation and modernized market infrastructure.
In a speech at the Chartered Financial Analysts’ Investment Conference over the weekend, SEC Chairman Francis Lim said the regulator is “transitioning to a risk-based, data-driven supervisory model” designed for earlier detection of misconduct, faster enforcement cycles and closer monitoring of market behavior.
The reforms cover a broad range of areas. Oversight of credit rating agencies, corporate disclosures, and listed-firm governance is under review to address concentration risks and improve transparency.
The SEC is also tightening conduct standards across traditional products and digital assets to ensure consistency in disclosure, suitability, and fair dealing.
Lim emphasized the regulator’s focus on enforcement, saying the goal is to demonstrate to investors that “the SEC will be a watchdog, not a lapdog.”
On market development, the SEC is studying a revised shelf registration framework for issuers, expansion of the repo market to include mutual funds, insurers, and trust entities, and the introduction of short selling and securities borrowing and lending to improve liquidity and price discovery.
The rules on real estate investment trusts are also being reviewed to expand eligible assets and lengthen reinvestment periods.
The agency is likewise working on sustainability reporting aligned with global standards, measures to support index inclusion of Philippine firms, and potential listings of state-owned enterprises and legislative franchise grantees.
To lower barriers for smaller players, the SEC is considering proportional regimes for SMEs, retirement-linked pooled funds, and a notice-based system for exempt transactions.
“A modern capital market cannot be exclusive. It must broaden participation—among institutions and individuals, large issuers and SMEs, sophisticated investors and working households,” Lim said.
The SEC also plans to expand financial literacy and anti-scam campaigns while lowering fees and streamlining digital pathways to bring more micro, small, and medium enterprises into the formal economy.
