SEC Deepens Commitment to Advance Reforms in Capital Market and Corporate Sector

​The Securities and Exchange Commission (SEC) is entering the New Year with a stronger commitment to implementing policies and reforms that will further boost the capital market, strengthen the corporate sector, and support the country’s overall economic growth.

​As it marches toward its 89th year of operations, the SEC is building on the several milestones it achieved in 2024 in line with its mandate to improve the ease of doing business, promote sustainability and corporate governance, expand the capital market, and protect the investing public.

“Looking back, the SEC has been relentless in its efforts to improve its services through digitalization and implementation of reforms that seek to create a conducive environment that will encourage businesses to incorporate and tap the capital market,” SEC Chairperson Emilio B. Aquino said.

“We are leaving 2024 with much needed changes implemented to enhance the business sector. As we embark on our 89th year, we will remain steadfast in transforming the capital market to support the growth of a sound and dynamic economy,” he added.

Driving ease of doing business

The SEC continued to transform its services as it launched five new digital platforms under the third wave of its digital initiatives to further ease its processes and doing business in the Philippines.

These platforms included the SEC Zuper Easy Registration Online (ZERO) and the Electronic Submission Authentication Portal (eSAP), which enabled applicants to register their businesses anytime, anywhere by allowing the digital authentication of documents.

SEC ZERO and eSAP removed the need to affix wet signatures, provide notarized documents, and submit hard copies of registration requirements, paving the way for a fully digital company registration process with zero manual intervention.

The Commission created the SEC Foreign Investment Registration Station (FIRST) Green Lane Unit to cater solely to the applications of entities under the Foreign Investment Act, as well as foreign and multinational companies, encouraging more foreign investments in the country. As of November 2024, the SEC FIRST Green Lane Unit has processed almost 16,000 applications.

Additionally, the SEC launched the Swift Corporate and Other Records Exchange (SCORE) Protocol and the Electronic Application for Modification of Entity Names and Data (eAMEND). The SCORE Protocol facilitates secure document exchange with agencies like the Bureau of Internal Revenue, enabling faster access to crucial corporate information. The eAMEND, which streamlines company information amendments, has processed over 17,000 applications in its first 10 months.

The Commission’s digitalization efforts have driven the increase in company registrations, on track to hit a new record high this year, as it reached 49,432 registrations from January to November 2024, representing a 6% year-on-year growth.

For its efforts in improving the ease of doing business through digital transformation, the SEC was conferred with the E-Governance Project of the Year-Regulatory in the GovMedia Conference & Awards in Singapore.

The Commission likewise received the AsiaCEO Circle of Excellence Award for Most Innovative Company of the Year earlier this year.

The digitalization of services is in line with the Commission’s efforts to achieve zero-contact and paperless transactions, forming part of its contribution to the overall sustainable goals.

Boosting capital market growth

The SEC was also steadfast in adhering to the marching orders of the Office of the President to boost the capital market.

As a result of its collaboration with various institutions and stakeholders, coupled with reforms to boost market participation, the SEC reported a 23.6% year-on-year increase in total market capitalization to P20.12 trillion, as of November 30.

To further encourage businesses to access the capital market, the Commission implemented policies that made the capital market a viable financing option for players in various industries including power, real estate, and agribusiness.

The SEC also leveraged the capital market to serve as a tool to support green and sustainable products. With this, the ASEAN-labeled Green, Social and Sustainability and Sustainability-Linked (GSS+) bonds issued by Philippine companies from January to November 2024 increased by 602.32% to reach P209.29 billion. This brings the value of outstanding ASEAN-labeled GSS+ issued as of end-November to P661.6 billion, representing a 46.27% growth from the same period last year.

It further approved the country’s first blue bond offering under recently issued guidelines, proceeds of which will be used to fund eligible blue activities such as sustainable wastewater management, and projects for the improvement and reform of marine ecosystems, among others.

As it intensified efforts to boost the capital market, the SEC achieved its goal of bringing the total number of companies that have raised fresh funds through the public offering of securities and crowdfunding to 888 in time for the Commission’s 88th year.

This year, the Commission also introduced SEC Strategic Sandbox (StratBox), a regulatory sandbox that will enable firms to test innovative products or services in a controlled setting and eventually offer them to the public at large. Due to this initiative the SEC was recognized by mobile payment services GCash for digital excellence for fostering the growth of innovative financial products and services.

For spearheading reforms that transformed the capital market, Mr. Aquino received the highest honor in the 2024 The Outstanding Filipino Awards, conferred by the Junior Chamber International Senate Philippines in recognition for his contributions in the corporate sector and the development of the capital market.

Championing sustainability

Recognizing that addressing climate change concerns requires collective action, the SEC continued to lead efforts to bolster the sustainability initiatives of the corporate sector.

In July, the SEC launched the Sustainable Enterprise Collaboration Network (eSECnature), which brought together members of the public and private sector to drive collaboration and facilitate knowledge-sharing activities to accelerate the adoption of sustainable practices.

Since requiring public-listed corporations to submit sustainability reports in 2019, the SEC recorded a consistently high compliance rate, reaching 96% in 2023.

The Commission was also aggressive in promoting the adoption of sustainable practices and submission of sustainability report through the Small and Medium Industries and Large Enterprises Embracing Sustainability (SMILEES) Roadshow.

Kicking off in Cebu, Davao, and Baguio to raise the awareness and building the capacity of SMLEs, the SMILEES Roadshow is slated to be conducted in other key cities including Legazpi, Bacolod/Iloilo, Cagayan de Oro, Tarlac, Tacloban and Zamboanga.

It is also lobbying for the enactment of the Environment, Social, and Governance (ESG) Bill, which will require all SEC-registered companies to submit sustainability reports.

The Commission’s holistic approach toward sustainability earned the Philippines its third International Standards of Accounting and Reporting Honours from the United Nations Conference on Trade and Development.

As an advocate for good governance, the SEC also won its sixth and seventh award from the London-based Cambridge International Finance Advisory, taking home the 3G Best Corporate Governance Policy & Disclosure Award and the 3G Transparency Award.

Intensifying investor protection and education

At the heart of the Commission’s mandate is investor protection and education through prompt enforcement action and promotion of financial literacy.

This year, the Commission was proactive in warning the public about unauthorized and illegal investment-taking activities and schemes to prevent them from falling prey to such scams with the issuance of 106 advisories as of end-October 2024.

It also stopped the operations of those involved in fraudulent activities with the issuance of 18 cease and desist orders against 42 entities, and revocation orders against 24 groups.

The SEC also filed criminal complaints against 68 individuals with the Department of Justice for violating Republic Act No. 8799, or the Securities Regulation Code, and Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act, to ensure that they will be penalized accordingly for their illegal activities.

In addition to enforcement activities, the SEC intensified its campaign to guide and empower Filipinos in their financial journey to secure their future.

In November, the SEC celebrated Investor Protection Week (IPW) with the aim of raising the financial literacy of the public and helping them make smart financial decisions in the different phases of their lives.

Inspired by Disney Pixar’s hit film Inside Out, the SEC introduced the five emotions that influenced people’s decision, namely: Wais, Tipid, Duda, Waldas, and Gipit, to highlight the importance of effectively managing, saving, and investing one’s money.

Aside from daily discussion on smart financial practices on properly handling allowance, income, savings, investments, and retirement funds, the week-long celebration featured an investor fair where attendees visited booths of financial products and service providers where they can start their investments.

The SEC also rolled out an extensive campaign against advance fee loan scams, an emerging modus that traps borrowers into paying advance fees before the payout of loans only to realize that they have been scammed out of their hard-earned money.

Through an active social media campaign and strong collaboration with stakeholders, the SEC equipped the public with information to help them spot and protect themselves from such schemes.

The SEC Advance Fee Loan Scam FAQ Reel Series, which formed part of the overall campaign against the loan scheme, earned the SEC the Outstanding Digital Campaign: Best Short-Form award from the Presidential Communications Office in the first-ever Parangal: Gawad sa Kahusayan sa Komunikasyong Pampubliko.