Integrity issues jolt capital mart — Lim

The Securities and Exchange Commission (SEC) sought the help of local firms to help the government ensure integrity by requiring that governance standards be met in all transactions.

Citing international surveys, SEC chairperson Francis Lim, in his speech during the 8th Financial Executives Institute of the Philippines (FINEX) general membership meeting in Makati City, said the country’s integrity “is still being tested.”

“Integrity is the invisible currency of our markets. It underwrites every transaction, every investment, every decision. When we uphold it, resources flow to their best uses and investors come in. When we lose it, trust collapses — taking away with it market strength, economic vitality, and faith in our institutions,” he said.

Lim said other capital markets have surpassed that of the Philippines because of questions of integrity.

Thus, he called on stakeholders to help in encouraging more companies to list with the Philippine Stock Exchange, to require that governance standards are met in every transactions, to ensure integrity in companies’ financial statements, and to champion investor protection.

Mirror of development gap

“The data is not just statistics — they are a mirror of the development gap we must confront. It underscores how far we have to go,” he said, pointing out that “every percentage point behind is a missed opportunity for our companies, our investors, our people and our nation.”

“But within this gap lies our greatest potential. The time to more purposely act is now. A vibrant capital market fuels infrastructure, empowers small businesses, drives innovation, and transforms growth into shared prosperity.”

Lim said reforms have been made in SEC, and these include reducing fees for SEC documents by 50 percent; implementation of the “deemed approved” rule to reduce opportunities for red tape; expanded the coverage of SEC’s online registration system — the OneSEC, from 30 to 83 company categories to remove human interference and possibility of corruption; and granted 50 percent discount to incentivize small businesses to become part of the formal economy.

He said these reforms “are not just process improvements” and instead are “signals that ethical leadership can, and must, be built into the very architecture of our markets.”

“But let’s be clear: integrity cannot be legislated into existence. It must be lived — especially by those who control capital, make strategic decisions and influence market behavior,” he added.