Finance Secretary Ralph G. Recto and newly appointed Securities and Exchange Commission (SEC) Chairperson Francis Lim are set to fast-track the implementation of key reform initiatives aimed at improving the ease of doing business and deepening the capital market.
The SEC, under the supervision of the Department of Finance (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.
Recto met Lim on June 23 to push forward President Ferdinand R. Marcos Jr.’s directive to enhance the competitiveness of the Philippine capital markets and facilitate the smooth entry of investments into the country.
Among the SEC’s top priorities is the efficient implementation of the recently enacted Capital Markets Efficiency Promotion Act (CMEPA)—a landmark reform aimed at broadening investor participation and reducing friction in market transactions.
The SEC is also tightening oversight of crypto asset service providers (CASPs) to protect consumers from systemic risks, ensure regulatory compliance, and promote trust in emerging digital financial ecosystems.
Meanwhile, Lim has reaffirmed its commitment to the proper implementation of the Ease of Doing Business Act.
To complement this, the SEC is developing a real-time application tracking system to enhance transparency and reduce the need for client follow-ups.
It will also review its Schedule of Fees, aiming 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.
In the short term, the SEC will pursue reforms to broaden market access, such as simplifying registration procedures for small and medium enterprises (SMEs) and opening the repurchase market to non-bank financial institutions (NBFIs).
To support the sustainable growth of NBFIs, including financing and lending companies, the SEC will strengthen its supervisory framework to ensure compliance with truth-in-lending disclosures, fair lending standards, and the prohibition of abusive collection practices. These measures aim to promote responsible market conduct and safeguard consumer welfare.
Furthermore, the SEC will 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 (IRR) of the Real Estate Investment Trust (REIT) framework to better respond to market needs.
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.
In the medium- to long-term, the SEC aims to enhance the visibility of Philippine securities in the global sphere by pursuing regulatory reforms that will improve the eligibility of local corporations for global indices.
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 uphold investor confidence and align with international best practices, 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 DOF commits to supervising the SEC in building a truly inclusive financial system for every Filipino. (PNA)
