The Securities and Exchange Commission (SEC) is entering 2025 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.
In a statement, the commission said that its 89th year of operations will build on several milestones 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.
He added that “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.”
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.
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 six percent year-on-year growth.
As a result of its collaboration with various institutions and stakeholders, coupled with reforms to boost market participation, the SEC reported a 23.6 percent year-on-year increase in total market capitalization to P20.12 trillion, as of Nov. 30.
To further encourage businesses to access the capital market, the SEC 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 percent 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 percent 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.
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.
The SEC 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.
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.
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.
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.