‘Reliable regulatory environment key to attracting investors’

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December 9, 2025 | 12:00am

MANILA, Philippines — The Securities and Exchange Commission (SEC) will push for further reforms to ensure a reliable regulatory environment in the country, saying that economic momentum alone is not enough to attract investors.

“As we enter 2026, despite the challenges confronting the country, the Philippines carries solid economic momentum, strong domestic demand, a young and skilled workforce, and expanding opportunities across infrastructure, manufacturing, renewable energy and services,” SEC chairman Francis Lim said.

“But for us at the SEC, momentum alone is not enough. Investors, especially foreign investors, need a regulatory environment that is clear, efficient and trustworthy,” he said.

Lim said the SEC has not only been listening to investor concerns, but has also been acting accordingly.

With certainty seen as the real currency of investment, Lim said that the commission continues to uphold a rules-based, transparent and predictable regulatory environment for foreign investors.

“Our commitment is to provide a regulatory environment that respects your time, protects your investment, and supports your long-term strategies. But building a thriving market is a shared responsibility. We are widening the door to clearer rules, faster processes and stronger governance. It is your confidence, your capital and your continued partnership that will turn these into real economic activity,” he said.

Recognizing that a reliable regulatory environment is essential for investors, Lim said the SEC has enhanced its service standards and streamlined its decision-making timelines.

He said that through the commission’s “deemed approved” policy, complete submissions are automatically approved if the SEC does not act within three, seven or 20 working days.

For public offerings, Lim said that the SEC now operates under a unified, non-negotiable 45-day review period.

Lim said that digitalization remains central for the SEC, with the commission expanding the coverage of the One Day Submission and Electronic Registration of Companies (OneSEC)-Zuper Easy Registration Online facility. This expansion increases the number of eligible industries to 81 from 33 and allows companies with foreign equity to register through the platform.

“We are making corporate governance amendments easier, faster and more predictable. We’re making major enhancements to our eAMEND digital system, expanding its coverage from only four items when I started, to now 23, allowing companies to amend far more provisions of their articles of incorporation and bylaws fully online,” Lim said.

“For foreign companies, this means less paperwork, less downtime and far greater flexibility to align your Philippines corporate structures with global growth standards. It is a modern regulation for modern business. All of these reforms are guided by a simple principle: regulation should enable, not obstruct, enterprise and foreign investments,” he said.

Lim also acknowledged the need to deepen the country’s capital market, as it continues to lag behind many of its ASEAN neighbors in terms of size, liquidity and breadth of instruments available to issuers and investors.

“This is not a weakness we deny. It is a challenge we are determined to overcome,” he said.

“The reforms we’re implementing today – deeper liquidity mechanisms, more flexible capital raising frameworks, stronger sustainability standards and broader investor participation are all designed precisely to narrow the gap and position the Philippines as a more competitive and investment-ready market in the region,” Lim said.

As part of ongoing efforts to review policies affecting listings in the capital market, the SEC is also considering a tiered approach to the minimum public ownership requirement for companies seeking to go public.

Under the proposed rules, covered companies will be classified into five tiers based on their expected market value at the time of their initial public offering.

Tier I, or companies with an expected market value equal to or less than P500 million, will be subject to a minimum initial public float of 33 percent. Those with market values greater than P500 million up to P1 billion, tagged as Tier II, should have a 25 percent, subject to a minimum public float of P165 million.

The minimum initial public float of Tier III companies, or those with a market value greater than P1 billion to P50 billion, shall be 20 percent, subject to a minimum public float of P250 million. Meanwhile, those with an expected market value of greater than P50 billion to P150 billion, or Tier IV, shall be subject to a 15-percent rate, provided a minimum public float of P10 billion is met.

Companies with an expected market value greater than P150 billion, or Tier V, shall be subject to a minimum initial public float of 12 percent, provided their float is not less than P22.5 billion.