The Securities and Exchange Commission (SEC) is preparing new guidelines that will expand fundraising and investment opportunities in the Philippine capital market, which includes crypto assets, green equity, and Sukuk bonds.
In a statement, the commission said these proposed and draft guidelines will also serve to strengthen the protection of investors and other financial consumers.
The SEC said it has released for public comment the proposed amendments to rules governing registrars of qualified institutional and individual buyers and the draft guidelines on crypto-asset service providers (SEC CASP Rules).
It also released the draft guidelines on Philippine Green Equity, the draft rules providing the definition of seasoned issuers and extension of shelf registration, and the draft rules for issuing and disclosing Sukuk bonds.
The SEC issued the second exposure draft of the amendments to Rule 39.1.4 of the Securities Regulation Code, or the Rules Governing Registrars of Qualified Institutional and Individual buyers.
The proposed amendments will reinforce the commission’s authority to verify the procedures of authorized registrars in accrediting qualified buyers to ensure that they maintain regulatory oversight and compliance with market regulations.
The current rules provide that an authorized registrar shall establish its internal procedures to guide its personnel in evaluating the qualifications of applicants for qualified buyer status.
The amendments specify the requirements for initiating and ceasing a qualified buyer’s function as a registrar, its responsibilities, and requirements to retain its registration, among others.
It also released, for public comment, the proposed SEC CASP Rules which will enhance the oversight and supervision powers of the SEC over businesses that involve the offering and trading, as well as other activities of innovative financial products.
The draft rules take into account the growth and development of new crypto-asset markets, services, and business models, as the Commission seeks to establish an affirmative legal framework to provide protection against consumer harms and systemic risks.
It also seeks to provide consumers the choice of engaging in crypto-asset activity with licensed and authorized intermediaries.
The draft guidelines for Philippine Green Equity was also released, seeking to promote the visibility and attractiveness of companies that actively support green activities and initiatives.
Green equity is a complement to sustainable debt instruments, expanding the range of sustainable investment products in the market and further support the transition towards a net zero carbon economy.
By identifying and recognizing businesses aligned with environmental and sustainability objectives, the green equity label aims to direct capital flows toward enterprises that contribute to building a climate-resilient and low-carbon economy, thereby supporting the country’s broader goals for sustainable development.
The SEC also released the proposed amendments to SRC Rule 3 and SRC Rule 8.1.2, covering the definition of seasoned issuer and enhanced shelf registration, respectively.
The draft guidelines will update the definition of terms to include seasoned issuer, which means any issuer designated by the commission as having demonstrated its compliance with requirements on size, listing history, and track record.
The proposal also covers the extension of shelf registration granted to seasoned issuers, allowing them to extend the offering period for additional tranches of securities under beyond the original three-year period.
Lastly, the SEC released the proposed guidelines on the issuance and disclosure of Sukuk bonds which seek to further the administration’s agenda to promote the development of Islamic banking and finance in the country and to create the opportunity for other Philippine issuers to access the Sukuk market in the future.
Sukuk or Islamic bond is the most popular financial instrument in the Islamic capital market, representing an important avenue for international fundraising and investment activities generating significant cross-border flows globally.