The Philippine Securities and Exchange Commission has opened consultation on draft rules that would require most exchange and non-exchange broker dealers to maintain at least PHP 120 million in unimpaired paid-up capital. The uniform requirement would cover first-time registrants and firms acquiring existing broker dealer businesses, replacing the differentiated PHP 100 million and PHP 30 million capitalization routes. Broker dealers dealing solely in proprietary shares and not holding client securities would retain a PHP 2.5 million minimum. Existing broker dealers would receive a phased transition, with minimum capital of PHP 100 million required by Dec. 31, 2029, rising to PHP 120 million by Dec. 31, 2030. Firms currently using the PHP 30 million alternative would remain subject to applicable surety bond rules during the transition, while exchange trading participants would need a bond of at least PHP 20 million from Dec. 31, 2028, until they meet the capital requirement. Risk-based capital adequacy, minimum net liquid capital and other prudential requirements would continue to apply. The proposal reflects inflation since the PHP 100 million requirement was introduced in 2004, which the commission estimates has reduced its real value to the equivalent of about PHP 230.54 million in 2026 prices.
Philippine Securities and Exchange Commission launches consultation on PHP 120 million broker dealer capital requirement
The Philippine Securities and Exchange Commission is consulting on a uniform PHP 120 million unimpaired paid-up capital requirement for most broker dealers. Existing firms would need PHP 100 million by Dec. 31, 2029, and PHP 120 million by Dec. 31, 2030, with transitional surety bond requirements for firms using the current PHP 30 million alternative. Proprietary-only broker dealers that do not hold client securities would retain a PHP 2.5 million minimum.