Philippines Financial Sector Assessment Program : Capital Markets Regulation and Supervision
The securities and exchange commission (SEC) is the main regulator of the capital market in the Philippines, but its resources are insufficient to adequately address its core functions, especially the supervision of capital market participants, and...
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| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2021
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| Online Access: | http://documents.worldbank.org/curated/en/661671629266026384/Philippines-Financial-Sector-Assessment-Program-Capital-Markets-Regulation-and-Supervision-Technical-Note http://hdl.handle.net/10986/36183 |
| Summary: | The securities and exchange commission
(SEC) is the main regulator of the capital market in the
Philippines, but its resources are insufficient to
adequately address its core functions, especially the
supervision of capital market participants, and yet it has
to address other legal responsibilities unrelated to capital
markets. Other agencies also have capital market regulatory
responsibilities, creating a fragmented regulatory framework
that causes inconsistencies detrimental to the market and to
investors’ protection. The existence of regulatory
arbitrage, supervisory overlaps, and enforcement gaps
evidences the need for an active periodic procedure with
other financial system regulators to coordinate supervision
activities and review unregulated products, markets, market
participants and activities. It should include information
sharing and analysis of areas where there may be arbitrage,
overlap, gaps, and risks to investor protection and market
fairness, efficiency and transparency or other risks to the
financial system. A clear and consistent risk-based approach
for the SEC supervision of capital market intermediaries is
needed. The bank secrecy legislation of Philippines impedes
prompt access by the SEC to bank account information. |
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