Recto, SEC Chair Lim Fast‑Track Capital Market Reforms

Finance Secretary Ralph G. Recto and newly appointed SEC Chairperson Francis Lim met June 23, 2025, to advance President Ferdinand R. Marcos Jr.’s agenda to elevate Philippine capital markets and improve ease of doing business.

They aim to accelerate implementation of the Capital Markets Efficiency Promotion Act (CMEPA), designed to expand investor participation and reduce friction in market transactions.

Signed May 30, CMEPA cut the stock transaction tax from 0.6 percent to 0.1 percent, lowered the documentary stamp tax on share issuance to 0.75 percent, and harmonized interest income taxation, effective July 1, 2025.

President Marcos said the law “empowers the small business owner, the young professional, and the overseas Filipino worker to start investing their hard-earned money to build a better future.”

Lim, a corporate lawyer, former PSE president and CEO (2004–2010), and ACCRALAW senior partner, brings decades of securities and governance expertise.

“We will leave no stone unturned,” Lim pledged when accepting the post.

Under the SEC’s direction from the DOF, they intend to tighten oversight of crypto-asset service providers to protect consumers from systemic risk and bolster trust in digital finance.

They will also accelerate the Ease of Doing Business Act by launching a real-time application tracking system, reviewing and lowering document fees, and temporarily halting fee increases.

Short-term measures include simplifying registration for small and medium enterprises and opening the repurchase market to non-bank financial institutions, while strengthening supervisory frameworks for fair lending disclosures and practices.

Longer-term reforms include differentiating equity and debt regimes, updating credit rating agency rules, aligning short-selling practices with global standards, and revising REIT implementing rules.

The SEC will also amplify its public-private engagements through the Capital Market Development Council and pursue regulatory alignment enabling Philippine firms’ eligibility for global indices.

Officials plan to develop a road map for alternative products like derivatives, options, futures, and a potential commodity futures market to diversify investor options.

Furthermore, investor confidence will be reinforced through risk-based audits, advanced digital monitoring, institutional capacity building, and stronger corporate governance oversight.

CMEPA is expected to raise over PHP 25 billion in net revenue by 2030 while making the financial system more equitable and accessible, according to the president.

These initiatives mark a significant pivot toward modernizing markets, increasing transparency, and creating inclusive opportunities across the Philippines’ financial landscape.