A mandate for efficiency (Part 1)

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

Fairness through access, cost reduction and digital transformation

As we approach the end of 2025, we look back at the pivotal policy directions outlined by the SEC earlier this year that will define the market’s trajectory in 2026.

The Philippine capital market has long faced a dual challenge: the need to attract new investors while battling the perception of being difficult and costly to navigate. As we close the year, it is worth revisiting the strategic roadmap laid out by the Securities and Exchange Commission (SEC) during the Shareholders’ Association of the Philippines (SharePHIL) forum.

While the event took place in August, the mandate remains urgent. SEC Chairperson Francis Lim’s vision of a “firm, fair and future-focused” market is not just a slogan — it is the blueprint for the reforms we can expect to accelerate in 2026.

Despite the Philippines’ steady economic growth, its capital market continues to lag behind regional peers, constrained by low investor participation, governance concerns and limited product diversity. These long-standing issues raise the cost of doing business and discourage participation, limiting the market’s ability to support entrepreneurship and long-term capital formation.

At the SharePHIL forum held on Aug. 8, 2025 and moderated by seasoned financial journalist Cathy Yap-Yang, Lim framed fairness not merely as equal treatment under the law, but as an investor’s lived experience within the system.

“From the vantage point of someone who has long worked at the intersection of law, policy and capital markets, one lesson stands out: Confidence in our markets depends not only on the quality of our legal framework, but on the actual experience of those who navigate it,” Lim said at the forum held at Dusit Thani, Makati.

“It’s not just what the law and the rules say. It is about how accessible, predictable and fair the system feels for those starting and building businesses, managing capital or protecting investor interest.”

A call to empower shareholders

The forum also marked a homecoming of sorts. SharePHIL president Aurora “Boots” Geotina-Garcia opened the event by reaffirming the organization’s mission to empower shareholders through education and advocacy.

“As many of you know, SharePHIL isn’t just an organization. It was built in 2010 by people who have come before us and who are present here today, who believe in shareholder rights and responsible investing,” Garcia said.

She recalled that Lim once served as SharePHIL’s president for six years, helping shape its “BE FAIR” agenda and pushing for reforms such as the modernization of the Corporation Code.

“So when we talk today about the SEC’s vision of a ‘no-nonsense’ regulator — firm but fair, efficient, and future-focused — it feels deeply personal because that is exactly the kind of leadership Francis brought to SharePHIL,” Garcia said.

For Garcia, fairness requires institutions that actively lower barriers to participation.

“This day was made possible because of your belief in our mission, empowering shareholders through education,” she added.

Lowering the cost of participation

From the market practitioner’s perspective, Ed Francisco, SharePHIL vice chairman and president of BDO Capital & Investment Corp., said reforms under Lim were already easing friction for investors and intermediaries.

“What’s nice, the first thing is, of course, as you know, ang mahal dati whenever we would require documents from the SEC – the photocopying, the documents. Ang mahal. Francis reduced it already by 50 percent even before the presentation here. They are losing P90 million a year for those fees, but they’re doing that to make it easier for us to get documents.”

Francisco noted that the SEC was also revisiting minimum float requirements and exploring “low-hanging fruits” such as BOI-registered firms and smaller banks to broaden market participation.

“If it’s okay with the people here, it’s really a commitment not only from SharePHIL but from all the participants here, especially representing the private sector. I guess we commit to work with Francis and the SEC to help talaga develop the markets, to ensure fairness, to at least give feedback, to help you with your job and work with PSE and the other companies because we all want the same thing.”

Eliminating barriers and bureaucracy

For Lim, fairness is ultimately tested by how systems function in practice.

“How long does it take to register a company? How much does it cost to comply? And just as importantly, whether the system encourages participation or quietly discourages it,” he asked.

“For me, this is the real test of a modern regulator. Not only whether we enforce the law, but whether we foster an environment where businesses can thrive and grow, investors can commit long-term capital and markets can serve the real economy.”

He acknowledged that the SEC is operating in a complex environment shaped by bureaucracy, technological disruption, rising investor expectations and growing financial crime risks.

Digital transformation and One SEC

A central pillar of the SEC’s fairness agenda is digitalization. Lim outlined reforms aimed at removing manual processes and reducing opportunities for delay or discretion.

“We’re increasing our one-day registration system called OneSEC. From 30 to 83 categories of companies, we’ve increased it by 50 categories in a span of less than two months with pre-encoded documents and automated identity verification via our e-SECURE. No human intervention, no notarization, no wet signatures. This will make registration of companies easier and faster.”

Beyond speed, the SEC is also focused on trust and document integrity.

“We will deploy a blockchain-backed validation system that will authenticate SEC documents through SIP cryptographic signatures — a major step in protecting against forgery and building digital trust.”

Coming up in Part 2

These bureaucratic improvements are the bedrock of a modern market. By removing friction, the SEC is laying the groundwork for activity. However, efficiency is only half the equation.

In the second part of this review, we will explore the deeper pillars of Chairperson Lim’s agenda: the “firm” application of the law, the debate on local listings and how the Philippines plans to harness AI and sustainability to secure its financial future.