The Securities and Exchange Commission (SEC) of the Philippines is preparing to unveil a series of transformative guidelines aimed at expanding fundraising opportunities and enhancing investor protection in the country’s capital markets. In a statement released on Wednesday, the corporate regulator announced its plans to modernize regulations and bolster confidence in the financial ecosystem.
Promoting Inclusivity Through Sukuk Bonds
Among the key initiatives is the introduction of new guidelines for the issuance of Sukuk bonds, which are Shari’ah-compliant financial instruments. The SEC’s proposal identifies eligible issuers as the National Government, special purpose vehicles (SPVs) specifically created for Sukuk issuance, and publicly listed companies operating through SPVs.
“The guidelines 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,” the SEC stated.
Sukuk bonds adhere strictly to Islamic principles, prohibiting elements such as interest, uncertainty, and investments in businesses involving prohibited goods or services. The move aims to make the Philippine financial market more inclusive while tapping into a growing segment of global investors.
Expanding Shelf Registration and Defining Seasoned Issuers
On December 26, the SEC issued draft rules redefining the parameters for seasoned issuers and extending the shelf registration period for securities. The revised guidelines propose extending the offering period for additional tranches of securities beyond the current three-year limit, making it more flexible for established issuers.
A “seasoned issuer” will now be defined as an entity meeting specific criteria related to size, listing history, and compliance track record, thus allowing such issuers to benefit from streamlined regulatory processes.
Strengthening Sustainable Investment Products
As part of its sustainability agenda, the SEC also introduced draft guidelines for Philippine green equity. This initiative complements existing sustainable debt instruments by expanding the range of environmentally conscious investment products available in the market.
Tightening Regulations on Cryptocurrency and Qualified Buyers
The SEC is also focusing on investor protection in the rapidly evolving cryptocurrency market. Draft rules for cryptocurrency asset service providers aim to set higher standards for operations while reinforcing safeguards against risks.
Additionally, proposed rules for registrars of qualified institutional and individual buyers will enhance the SEC’s authority to verify accreditation procedures, ensuring only vetted entities participate in high-value investments.
Public Engagement and Feedback
The SEC has invited public comments on its various proposals, with deadlines ranging from January 10 to January 26. These consultations underscore the regulator’s commitment to transparency and stakeholder involvement in shaping the future of Philippine capital markets.
Through these initiatives, the SEC is taking bold steps to modernize the regulatory landscape, foster sustainable growth, and provide a safer environment for investors in 2025 and beyond.
