Makati city: The chief of the Securities and Exchange Commission (SEC) on Friday called on finance officials of local firms to help the government ensure integrity by requiring that governance standards be met in all transactions.
According to Philippines News Agency, SEC Chairperson Francis Lim, during his speech at the 8th Financial Executives Institute of the Philippines (FINEX) general membership meeting in Makati City, emphasized that the country's integrity 'is still being tested,' as indicated by international surveys. Lim highlighted the importance of integrity, describing it as the 'invisible currency of our markets,' which supports transactions and investments. He warned that the loss of integrity can lead to a collapse of trust, significantly affecting market strength, economic vitality, and institutional faith.
Lim noted that other capital markets have surpassed the Philippines due to integrity issues, urging stakeholders to encourage more companies to list with the Philippine Stock Exchange. He stressed the importance of meeting governance standards in every transaction, ensuring integrity in financial statements, and advocating for investor protection. Lim pointed out that each percentage point of lag in development represents a missed opportunity for companies, investors, and the nation. He highlighted the potential within this gap, stating that a vibrant capital market can drive innovation, empower small businesses, and transform growth into shared prosperity.
The SEC has implemented several reforms, Lim mentioned, including a 50 percent reduction in fees for SEC documents and the adoption of the 'deemed approved' rule to minimize red tape. The SEC has also expanded the OneSEC online registration system from 30 to 83 company categories to eliminate human interference and potential corruption and has offered a 50 percent discount to incentivize small businesses to join the formal economy. These reforms, he explained, are more than just process improvements; they are indicators that ethical leadership should be embedded in the market's structure. Lim concluded that while integrity cannot be legislated, it must be practiced by those who control capital and influence market behavior.
