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Thursday, May 16, 2024

Economic czar recognizes SEC for pushing capital market reforms

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Special Assistant to the President for Investment and Economic Affairs Frederick Go acknowledge the Securities and Exchange Commission (SEC) for its “excellent” response in implementing capital market reforms.

“Allow me to commend the SEC for their decisive actions on boosting the Philippine capital market and the country’s stock exchange. We discussed some reforms needed and they have been excellent in their response,” Go said in a keynote speech during the Global Good Governance Summit organized by Cambridge IFA and hosted by the SEC at Shangri-La The Fort Manila in Taguig City on April 29, 2024

“On the investments and economic level, this is what my office for investment and economic affairs is all about – actualizing the whole-of-government approach to integrate and implement the President’s priority programs and economic agenda,” he said.

The SEC met with Go at the start of the year to align the commission’s programs with the targets of the Marcos administration in pursuing capital market development and improving ease of doing business.

The SEC has since implemented several regulations and programs to help spur capital market activity.

The SEC issued Memorandum Circular Nos. 7 and 8, Series of 2024, which provide for the removal of the minimum commission charged by Philippine Stock Exchange (PSE) stockbrokers and the guidelines for cornerstone investors in initial public offerings, respectively.

Both guidelines are expected to encourage more retail investors to participate in the stock market.

The SEC also shortened the settlement cycle to T+2 from T+3, effectively allowing investors to receive proceeds from securities trades within two days instead of three, while also reducing risk exposure for trading participants by one day.

The SEC launched simplified application procedures for agribusinesses in line with President Ferdinand Marcos Jr.’s focus on agriculture. The initiative will streamline the requirements for agri-based companies registering securities for the purpose of raising funds for agriculture projects, making capital more accessible to the sector.

It also approved the PSE’s application for exemptive relief in relation to its merger with the Philippine Dealing System Holdings Corp., which is expected to create synergies and efficiencies in favor of capital market participants.

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