Integrity key to investor trust: SEC chief

Securities and Exchange Commission (SEC) chairman and CEO Francis Lim on Thursday likened the country to a wealthy family whose children have squandered its assets “by not doing the right things.”

Speaking at the European Chamber of Commerce of the Philippines’ (ECCP) Economic Outlook briefing at Dusit Thani Manila on 4 December, Lim said, “The Philippines is a gifted country. We are gifted with natural resources, with young, talented, [and] gifted people, with [strong] demand. And look what’s happening.”

Lim’s remarks were reinforced by the panel’s subsequent presentations, with financial-sector leaders agreeing that the collapse in infrastructure spending — driven by the floodgate scandal — remains a major concern for international investors.

Rebuilding investor confidence

“Integrity across government and the business sector is essential to rebuilding investor confidence,” the SEC chairman stressed against a dim picture of public infrastructure spending falling 26.2 percent in the third quarter of 2025 following the ghost flood-control project controversy.

Economists noted that this contraction has significantly contributed to the country’s three-year-low GDP growth of 4.0 percent.

On Wednesday, the Independent Commission for Infrastructure (ICI) recommended filing cases against several lawmakers and Department of Public Works and Highways (DPWH) officials, including former Senator Bong Revilla and current senators Jinggoy Estrada and Chiz Escudero, over their alleged roles in budget insertions amounting to humongous amounts, bloating the national budget.

Corruption biggest headwind

Despite progress in the investigations, corruption remains the biggest headwind for investors. Lim stressed that integrity in both public service and private enterprise is the most valuable “currency” in restoring market confidence.

“For me, the risk is the ability to restore investor confidence in the country. Integrity for us is the invisible currency for investor confidence, because without it, business will not commit to capital, and markets simply will not grow. So, as a country, we have to work hard to restore integrity in our market,” he said.

Lim added that the SEC continues to pursue reforms aimed at improving ease of doing business.

These include faster processing times — capped at 21 days depending on request complexity — and ongoing efforts to reduce friction through the Capital Markets Efficiency Promotion Act, which seeks to cut red tape, lower transaction costs, and make capital-market participation easier.

Commitment to transparency

He emphasized that integrity within financial institutions and government agencies remains “at the heart” of the country’s recovery, underscoring the SEC’s commitment to transparency.

“At this moment, as the nation confronts the flood control scandal, the Securities and Exchange Commission chooses not to retreat, but to lead,” Lim said.