New SEC Chair prioritizes streamlining reforms to enhance business environment

incoming SEC leadership has reaffirmed its dedication to the proper execution of the Ease of Doing Business Act. In line with this, the SEC is in the process of creating a real-time application tracking system that will boost transparency and minimize the necessity for client follow-ups. Additionally, a review of the Schedule of Fees is underway to reduce the cost of obtaining both digital and physical copies of requested documents. The agency plans to impose a moratorium on fee increases for a specified period to enhance client satisfaction.

In the immediate future, the SEC will focus on initiatives to expand market access, including simplifying registration processes for small and medium enterprises (SMEs) and extending the repurchase market to non-bank financial institutions (NBFIs). To ensure the sustainable growth of NBFIs, the SEC aims to strengthen its supervisory framework to uphold truth-in-lending disclosures, fair lending standards, and prevent abusive collection practices. These efforts are designed to maintain responsible market conduct and protect consumer interests.

Furthermore, the SEC will work on enhancing capital market regulations by clarifying equity and debt regimes to streamline approval procedures, updating regulations for credit rating agencies to enhance credibility and market depth, and aligning short selling and securities lending practices with global standards. The agency will also revise the implementing rules and regulations (IRR) of the Real Estate Investment Trust (REIT) framework to better match the needs of the market.

To foster cooperative governance between the public and private sectors, the SEC will prioritize reforms to the Capital Market Development Council and engage with key business organizations to gauge public sentiment. Looking ahead to the medium- to long-term, the SEC aims to boost the visibility of Philippine securities globally by enacting regulatory changes that will make local corporations eligible for global indices.

The SEC will also craft a roadmap for alternative investment products and derivatives, including options, futures, and a potential commodity futures market to enhance risk management and broaden investment choices. To enhance investor confidence and align with international best practices, the SEC will reinforce oversight of corporate governance, market behavior, and investor safeguards through risk-based audits, advanced digital monitoring tools, and continuous institutional capacity building.

The Department of Finance is committed to overseeing the SEC’s efforts to create a comprehensive financial system that benefits all Filipinos. With Recto and Lim at the helm, the SEC is well-positioned to drive significant regulatory reforms that will not only enhance the ease of doing business in the Philippines but also deepen the capital market to attract further investments.