SECSecurities and Exchange Commission

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. Where established policies and processes are in place, SEC creates an environment that supports businesses in obtaining funding efficiently while maintaining confidence in the investment.

Despite the recent focus on reforms, the overall emphasis on the SEC's obligation is to provide a capital market that offers transparency and accessibility to all, and to help ensure it is regulated in a way that facilitates ownership participation and promotes wealth democratization.

The SEC establishes this market by implementing policies that foster sustainable economic development while balancing the competing interests of issuers, investors, and other market participants.

Vision

As the SEC looks five years ahead toward its vision of being the leading investor champion and facilitator for innovation in Southeast Asia by 2028.

The SEC has narrowed its focus to a clearly defined mission of providing investors with a fully supported framework that is backed by a skilled staff well-trained in customer service. In addition to employing qualified and trained staff, the SEC's mission also involves leveraging cutting-edge digital technology and providing efficient registration processing, which will enhance compliance oversight and facilitate investor engagement.

The SEC's further ambition is to broaden, deepen, and inform its investor base of citizens, creating a business environment that welcomes them. At the same time, we are developing our regulatory approach and continuing to expand our innovative methods and practices, so that we can support the Philippines' elevation to one of the most competitive markets within SEA.

Mission and Strategic Objectives

The SEC wants to be known as the gateway to doing business in the Philippines. The Commission works under the mission of providing a safe, competitive, and sustainable business environment efficiently, which includes:

• fast and efficient registration and monitoring of companies

• facilitating capital formation and access

• broad stakeholder participation

• facilitating transformative innovation in the business

• broad range of investor protection and financial transparency

In addition, the SEC supports its economic development partnership engagement and its mission of protecting the public as the investing audience.

Core Values that guide the Commission

The SEC has strong values, both as an organization and individually, that we, as/core, encompass. This collection of shared values and philosophies informs decision-making and fosters confidence and trust with the public.

• INTEGRITY - conduct ourselves fairly, honestly, and sincerely with all we do,

• PROFESSIONALISM- being competent and striving for excellence, performance driven, in all that we provide in public service,

• ACCOUNTABILITY- a complete acceptance of responsibility for our actions and decision-making processes, transparently and at every level of the organization,

• TEAMWORK - working collaboratively and seamlessly across the departments to achieve common objectives,

• INDEPENDENCE - we will be independent and are free to form our opinions and judgements without situational biases, fears, or favoritism.

These values empower the SEC to build an institution that embodies good governance, protects investors, and enhances the integrity of the capital markets.

Meeting the evolving and shifting tidal currents of change

With an immediate shift from established global finance to now ethical finance, and new technologies and new market instruments, new textures in which we participate with the capital market, the SEC is preparing to shape ways that will not only meet its dual Stakeholder obligations, but will provide resilience and nimbleness to respond to risks, new and evolving, while ensuring investment confidence.

The strategic alignment of the SEC's digital transformation, its innovative regulatory approach to quality of life, and its ethical core values support all its responsibilities to serve as the protector of the Philippines' Capital Markets.