As the national regulatory body overseeing corporate governance, capital markets, securities trading, and investor protection, the Securities and Exchange Commission (SEC) already had its work cut out for it.
The SEC was officially established on October 26, 1936, through Commonwealth Act (CA) 83, known as the Securities Act.
The initial mandate of the Commission was primarily to regulate the registration of, and sale of, securities; to supervise exchanges, brokers, dealers, and salespeople; and to promote fair practices within the growing investment market in the country.
Over the years, the role of the SEC has significantly expanded as new legislation was crafted to spur investments and enhance public participation in corporate activities, which in turn lessened the regulatory function of the SEC.
Today, the SEC is a vital institution in regulating the corporate and capital markets in the Philippines, promoting good governance, investor protection, and the equitable distribution of wealth.
Role in Corporate Oversight
The SEC is the registrar and protector of the Philippine corporate sector, overseeing over 600,000 active corporations within the country.
The SEC regulates corporations' adherence to reporting standards that apply to all registered companies by reviewing and evaluating financial statements and monitoring business activities.
The expanding and increasingly complex globalization of corporate structures raises the stakes for the SEC.
As it works to discover potential abuses, stop fraudulent activity, and enforce transparency among corporations, it faces numerous challenges to minimize impropriety in the pursuit of greater efficiencies.
The SEC, as a diligent registrar and independent regulatory body, plays a crucial role in this rapidly changing environment and has a unique complexity in business interactions.
Capital Market Regulation and Development
As a substantial and valuable part of the Philippines' financial system, the SEC serves as a double Stakeholder in the regulation and development of the capital market sector.
