The Philippine Securities and Exchange Commission has issued for comment draft rules that would limit broker directors of an exchange to one-year terms and a maximum cumulative service period of 10 years, whether consecutive or intermittent, at the same exchange. The proposal is intended to broaden opportunities for qualified brokers to serve and bring new perspectives to exchange boards. After five cumulative years, a broker director would generally be required to observe a two-year cooling-off period before re-election and could then serve up to five additional cumulative years. Service exceeding six months would count as a full year. The draft states that broker directors elected after the circular takes effect would not be covered by the cooling-off period. Exchanges would remain responsible for ensuring continuing compliance with director qualification requirements. Breaching the 10-year limit would expose an exchange to a basic penalty of PHP 1 million per broker director per year and a continuing monthly penalty of PHP 30,000. A third or subsequent violation could result in suspension or revocation of the exchange’s license. Incumbent broker directors could complete their current terms before the new limits apply, and comments are due by March 19, 2026.
2026-03-04Philippine Securities and Exchange Commission
Philippine Securities and Exchange Commission consults on 10-year term limit for exchange broker directors
The Philippine Securities and Exchange Commission is consulting on a 10-year cumulative service limit for broker directors of an exchange, generally including a two-year cooling-off period after five years. Exchanges breaching the cap could face a PHP 1 million annual penalty per director and PHP 30,000 for each additional month. Comments are due by March 19, 2026.