The Securities and Exchange Commission (SEC) is moving to overhaul the stock exchange's leadership, proposing strict term limits that would unseat several long-serving power players in the local brokerage community.

Under draft SEC rules released for public comment, broker directors would be restricted to a maximum cumulative term of 10 years at any exchange, whether served consecutively or intermittently.

The regulator also proposed a mandatory two-year cooling-off period for any incumbent broker director who has already served five years.

While the cooling-off period would not apply to directors elected after the circular takes effect, the overarching 10-year cap signals a definitive end to the decades-long tenures that have characterized the Philippine Stock Exchange (SPE) board.

The SEC stated that the move is designed to ensure fair and effective representation on the exchange, arguing that rotating leadership is necessary to provide qualified brokers opportunities to offer new perspectives. The deadline for written comments on the proposal is March 19, 2026.

If the rules are finalized in their current form, at least four prominent directors would be barred from reelection at this year’s annual stockholders’ meeting.

The most notable exit would be that of former chairwoman Ma. Vivian Yuchengco. Representing First Resources Management and Securities Corp., Yuchengco has held a seat on the PSE board for 28 years.

The policy would also end the tenures of Eddie Gobing of Lucky Securities, who has served for 25 years, and Wilson Sy of Wealth Securities, a veteran of 12 years.

Furthermore, Diosdado Arroyo, a director for six years and son of former President Gloria Macapagal Arroyo, would be forced into a two-year hiatus. Under the proposed framework, Arroyo would only be eligible to return for a final four-year stint to reach the 10-year limit.

The crackdown on broker tenures follows a separate SEC mandate targeting independent directors. By capping independent terms at nine years, the regulator has also put the position of PSE Chairman Jose T. Pardo under pressure. Pardo has served as an independent director of the bourse for more than 15 years.

SEC Chairperson Francis Lim said the essence of independent directors is their ability to exercise judgment free from long-term entanglements.

“The essence of having independent directors is that their ability to exercise independent judgment over a company’s affairs, making them an effective tool for promoting good corporate governance, transparency, and accountability,” SEC Chairperson Francis Lim said.

He added that, “A strict term limit ensures that independent directors maintain the objectivity and impartiality required to serve the very purpose envisioned under the law.”