Philippines Department of Finance moves to fast-track SEC reforms to deepen capital markets and improve ease of doing business

The Philippines Department of Finance announced that Finance Secretary Ralph G. Recto and newly appointed Securities and Exchange Commission Chairperson Francis Lim will accelerate the rollout of reform initiatives intended to improve the ease of doing business and deepen the capital market. The agenda includes implementing the recently enacted Capital Markets Efficiency Promotion Act and tightening oversight of crypto asset service providers. Planned operational changes include developing a real-time application tracking system, reviewing the SEC’s Schedule of Fees to lower the cost of requested documents, and imposing a moratorium on fee increases for a specified period. Near-term market reforms include simplifying registration procedures for small and medium enterprises and opening the repurchase market to non-bank financial institutions (NBFIs), alongside a stronger supervisory framework for NBFIs focused on truth-in-lending disclosures, fair lending standards, and the prohibition of abusive collection practices. The SEC also plans to streamline capital market approvals by clarifying equity and debt regimes, update rules for credit rating agencies, align short selling and securities lending with global standards, and revise the implementing rules and regulations for the Real Estate Investment Trust framework. Over a medium- to long-term horizon, priorities include reforms intended to improve the eligibility of Philippine corporations for global indices and a roadmap for alternative investment products and derivatives, including options, futures, and a potential commodity futures market.