With the equities market needing to play catch-up with its close neighbors, the appointment of lawyer Francis Ed. Lim, as chairperson of the Securities and Exchange Commission (SEC) by President Ferdinand R. Marcos Jr., is considered a pivotal moment.

The Philippine stock market’s capitalization of $324.833 billion in February 2025 is modest compared to those of regional leaders like Singapore, Indonesia and Malaysia.

As of February 2022, there were 672 listed companies on the Singapore Exchange with a market capitalization of roughly $657 billion.

The three neighbors boast of more diversified listed companies and deeper markets. Vietnam’s market, while smaller than Singapore’s, has been growing rapidly due to increased listings and investor interest. The Philippine Stock Exchange (PSE) remains constrained by a small number of listed companies and low liquidity in the secondary market.

Lim steps into the shoes of Emilio B. Aquino, whose seven-year tenure saw significant strides in modernizing the SEC’s operations.

The new SEC chief has extensive expertise in corporate law, capital markets and financial governance that led to his role as president of the PSE.

His leadership at SEC promises an era of increased transparency, enhanced investor confidence, and improved regulatory efficiency.

In his address during the turnover ceremony at the SEC headquarters in Makati City last 10 June 2025, Lim outlined a clear objective for the agency.

“I envision the SEC as a no-nonsense regulator — firm when necessary, but always fair, efficient, reliable, and professional. One that enables investment and business growth without compromising on integrity,” he declared.

He underlined a balanced approach that prioritizes both regulatory rigor and accessibility for businesses and investors.

Lim acknowledged the Philippine capital market’s lagging behind its regional peers that he said underlines the urgency of his mission.

“Inclusive growth demands deeper, broader, and more accessible capital markets,” he noted, signaling his intent to address systemic barriers that have hindered the growth of the country’s financial markets. His commitment to collaboration with key stakeholders, such as the PSE, the Philippine Dealing and Exchange Corp. (PDEx), non-governmental organizations, and the branches of government, highlights a strategic approach to driving meaningful reforms.

By fostering partnerships, Lim aims to create a more dynamic and inclusive financial community that supports economic growth while safeguarding investor interests.

Resolving backlogs a priority

One of Lim’s priorities as SEC chairperson is to address operational inefficiencies. He pledged to “resolve all pending applications quickly and responsibly,” with an emphasis on adhering to timeframes.

The focus on efficiency is critical, as delays in processing applications for business registrations, securities offerings and other regulatory requirements have long been a pain point for companies and investors.

Lim’s emphasis on streamlining processes reflects his understanding of the need to reduce bureaucratic red tape, which can deter investment and stifle economic activity.

“We will work to further simplify and streamline everything we ask from the public. I am aware that some steps have been taken in this direction, and we are committed to pursuing them with greater vigor. Every requirement must be justified…Let’s make it easier to comply, and harder to delay,” Lim continued. The commitment aligns with efforts to improve the ease of doing business in the Philippines, a key factor in attracting investments.

Lim aims to enhance the SEC’s reputation as a responsive and business-friendly regulator, while maintaining its role as a guardian of market integrity by prioritizing efficiency.

Lim’s professional experience in corporate law, capital markets, and financial governance was gained from his role as senior legal counsel at ACCRA Law, one of the Philippines’ most respected law firms. His expertise spans securities and capital markets litigation, bankruptcy, insolvency, corporate rehabilitation, antitrust and trade regulation, all relevant to the SEC’s mandate.

This deep knowledge of the capital market system equips him with the means to navigate the complex legal and regulatory challenges facing the agency, from enforcing compliance to fostering innovation in the capital markets.

Lim’s tenure as president and chief executive officer of the PSE from 2004 to 2010 is particularly noteworthy.

During this period, he played a pivotal role in strengthening market integrity and modernizing regulatory processes.

At the PSE, his leadership saw the implementation of key reforms that enhanced transparency and investor protection, laying the groundwork for a more robust capital market.

Lim also held concurrent positions in affiliated institutions, such as the Securities Clearing Corp. of the Philippines and the Philippine Dealing & Exchange Corp. (PDEx), further deepening his understanding of the financial ecosystem.

Beyond his work in the private sector and capital markets, Lim has made significant contributions to the development of Philippines’ legal frameworks.

As co-chairperson of the Supreme Court’s sub-committees on e-Commerce and Notaries Public, he helped draft rules that modernized legal processes in the country.

His involvement in the subcommittee on Commercial Courts led to the creation of the Rules on Corporate Rehabilitation (2008) and the Rules on Electronic Evidence (2011), both of which have had a lasting impact on the judicial system.

These accomplishments demonstrate Lim’s ability to drive systemic change, a skill that will be critical in his role as SEC chairperson.

Lim is a magna cum laude graduate with a Bachelor of Philosophy from the University of Santo Tomas, he earned his law degree from the Ateneo de Manila University and was admitted to the Philippine Bar in 1981.

He later pursued a Master of Laws at the University of Pennsylvania in 1987 and is certified to practice law in New York.

Currently, he shares his expertise as a law professor at the Ateneo Law School and the San Beda College Graduate School of Law, mentoring the next generation of legal professionals.

Lim’s professional achievements have earned him widespread recognition. He has been consistently named a top lawyer by prestigious publications, including the Legal 500 Asia Pacific, which recognized him as a leading lawyer in capital markets, and the Asia Business Law Journal, which included him in the Philippines’ Top 100 Lawyers in 2021.

These accolades underscore his reputation as a trusted and influential figure in the legal and financial sectors.

Challenges, opportunities

As SEC chairperson, Lim inherits an agency with a broad and complex mandate: to regulate corporations, protect investors, and develop the capital markets.

Lim is being looked up to in addressing limited market depth, low financial literacy among retail investors, and the need for greater participation from small and medium enterprises in the capital markets.

Additionally, the rise of digital platforms and fintech innovations presents opportunities and regulatory challenges in which the SEC needs to adapt to a rapidly evolving financial landscape.

One of Lim’s key challenges will be to deepen and broaden the capital markets to promote inclusive growth.

The equities market has been traditionally dominated by a small number of large corporations, limiting opportunities for smaller companies to access capital.

Lim mentioned a “deeper, broader, and more accessible capital market, bringing the need for democratized access to financing, particularly for small and medium enterprises (SMEs), which are critical drivers of economic growth.

Initiatives such as crowdfunding platforms, which the SEC has been promoting in recent years, could be expanded under Lim’s leadership, which will be critical in providing alternative avenues for capital for smaller businesses.

Another priority will be enhancing investor confidence through robust corporate governance and transparency.

The Philippines has made strides in improving corporate governance standards, but issues such as insider trading, market manipulation, and weak enforcement mechanisms continue to undermine trust.

Lim’s experience at the PSE, where he championed market integrity, positions him well to strengthen the SEC’s enforcement capabilities and ensure violators are held accountable.

His “no-nonsense” approach to regulation suggests a commitment to eliminate malpractices while fostering a fair and level playing field for market participants.

The digital transformation of the financial sector also presents a significant opportunity as the rise of fintech, blockchain, and digital assets has transformed the way businesses and investors operate.

A modernized market also introduced new risks, such as cybersecurity threats and unregulated digital platforms.

Lim’s expertise in e-commerce and electronic evidence are invaluable in navigating challenges. Under his leadership, the SEC is likely to prioritize the development of clear and forward-thinking regulations for digital assets and fintech, ensuring that the country remains competitive in the global financial landscape.

Leadership for the future

Lim’s appointment comes at a critical juncture as the country seeks to position itself as a leading investment destination in Southeast Asia.

By streamlining processes, resolving backlogs, and promoting inclusive growth, Lim has the potential to transform the SEC into a regulator that supports economic development without compromising on integrity.

His collaborative approach, which emphasizes partnerships with the private sector and government, will be key to achieving these goals.

Lim’s leadership is expected to bring renewed energy to the SEC by focusing on simplifying compliance, enhancing transparency, and embracing innovation, positioning the agency to meet the challenges of a rapidly changing financial landscape.

At the helm, Lim is expected to position the SEC to play a central role in shaping a more inclusive, dynamic, and resilient economy.

Lim’s vision, expertise, and proven leadership will be an asset for the SEC in addressing longstanding challenges and seizing emerging opportunities.