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By Likha C. Cuevas-Miel, Reporter
THE Securities and Exchange Commission (SEC)
said it will review the implementing rules and regulations (IRR) of
the Securities Regulation Code to make it more responsive to the
changing needs of the Philippine capital markets.
Fe Barin, SEC chairperson, said the regulator
can make adjustments to the IRR without going to Congress because
the Code has a provision that gives the SEC authority to “extend
from the rules”.
“That’s a very powerful provision,” she
said.
Barin said some provisions, such as those
pertaining to corporate disclosures should be revisited.
Earlier, an SEC source said it would ask the
Philippine Stock Exchange to review some of its rules on “chain”
listing, backdoor listing, as well as those on listed companies that
frequently change their primary business purpose. The rules should
be clearer to avoid confusion among the shareholders and keep the
firms from shortchanging the investing public, the source said.
Apart from a review of the Code’s rules, Barin
said the SEC would also hold talks with the Chamber of Thrift Banks
regarding the rules on over-the-counter (OTC) sales of government
securities.
Under SEC Memorandum circular no. 6 series of
2006, brokers or dealers should be a member of a self-regulatory
organization (SRO) registered with the SEC before they could
participate in an OTC market. The memorandum also has a transitory
provision of one year so that brokers and dealers can form and
register their own SRO or join an existing one.
“Based on what they wrote to us and our answer
to them, I guess it’s a matter of holding further discussion so
they will understand where we’re coming from. Because I think not
everything is clear based on the rules. Once we sit down with open
minds, maybe we could get somewhere,” Barin said, referring to the
thrift bank group.
The chamber had been lobbying for another
extension so the SEC could revisit the transaction fees that
accompany the rule.
The group said the transaction costs are
prohibitive for small lenders. However, the SEC earlier ruled out
any extension of the rule.
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