Capital market changes set — SEC

The Securities and Exchange Commission (SEC) is kicking off the new year with a suite of planned reforms designed to expand fundraising and investment opportunities while strengthening investor protection in the local capital market.

Ahead of the year’s close, the SEC unveiled several draft guidelines for public consultation for the planned amendments to rules on qualified institutional and individual buyers, regulations for crypto-asset service providers (SEC CASP Rules), guidelines on Philippine Green Equity, definitions and provisions for seasoned issuers, and rules for the issuance and disclosure of Sukuk bonds.

“These proposed reforms demonstrate our proactive approach in adapting to the evolving financial landscape, ensuring that we protect investors and maintain a level playing field for all market participants,” SEC chairperson Emilio Aquino said on Wednesday.

The draft amendments to the Rules Governing Registrars of Qualified Institutional and Individual Buyers aim to strengthen SEC oversight of registrars. 

Crypto rules revamped

The updated rules clarify procedures for accrediting qualified buyers and introduce requirements for maintaining and ceasing registrar functions. Comments on the proposal may be submitted until 10 January via email.

On 20 December, the SEC issued the draft SEC CASP Rules to regulate businesses involved in the offering and trading of crypto-assets to establish a legal framework to protect consumers from systemic risks and encourage transactions with licensed intermediaries. The deadline for comments is 18 January.

Boosting its sustainability agenda, the SEC introduced draft guidelines for Philippine Green Equity on 26 December. 

The proposal aims to recognize companies championing green initiatives, thereby directing investments towards climate-resilient and low-carbon enterprises. Stakeholders have until 25 January to share their feedback.

The Commission also proposed amendments defining “seasoned issuers” and extending shelf registration periods beyond the current three years for eligible issuers. 

Lastly, guidelines for Sukuk bonds were unveiled to promote Islamic finance, offering opportunities for Philippine issuers to tap into international fundraising markets. 

The SEC is encouraging public participation in shaping these policies, with comment deadlines stretching from mid-January to late January.