SEC says the planned rate increase is still possible

THE EFFECTS and exchange The Commission (SEC) said so The proposed increase in fees would continue after approval of the Anti-Red Tape Authority’s (ARTA) regulatory impact assessment.

“We have already secured the ‘no objection’ from the ARTA, essentially saying it is within our authority. We will ensure that there will be a reasonable transition before any increase is implemented,” SEC Commissioner McJill Bryant T. Fernandez told reporters in Makati City last week.

“It’s all about timing now as we have secured the necessary approvals, even the ARTA, after submitting our regulatory impact assessment. From our side, in terms of approvals from above, we have already done it,” he added.

However, Mr Fernandez said there is no specific date yet for the implementation of the proposed rate increase.

“It (compensation increase) is still part of the plan. There is no need to ring alarm bells because the first priority is to allow companies and industries a reasonable transition,” he said.

Mr Fernandez said the SEC has also informed local business groups of ARTA’s go signal for the fare increase.

“Our doors are certainly open and we will contact them once we are in the implementation phase,” he said.

You will be asked if there have been any changes in fees to reflect rising inflationMr Fernandez said this would require necessary approvals.

“The decisions should be in accordance with reality and take everything into account. But if there were to be any change in the rates, you would have to follow the same route when it comes to getting permission,” he said.

In August last year, the SEC proposed increasing fees and costs, which have not changed since 2017. The proceeds from the rate increase will be used to develop the digital services of the business regulator.

Under the SEC’s proposal, fees would increase to one-fourth of 1% of an entity’s registered capital, but not less than P2,500 of the subscription price of the subscribed capital, whichever is higher.

Another proposed change is to charge corporate issuers one-fourth of 1% of total debt when creating bonds.

The SEC also proposed to increase the compensation for the total number of transactions completed by the Securities Clearing Corp. in the previous year. of the Philippines and the Philippine Depository Trust Corp. has been settled, to be set at 0.1 basis point (bp) and 0.05 bp respectively.

However, business groups led by the Philippine Chamber of Commerce and Industry (PCCI) objected to the tariff hike, calling it “anti-business” and “unnecessary.”

The groups said the increase could discourage the entry of new investmentsFinfluence the growth of small and medium-sized enterprises.

PSE-PDS MERGER
Meanwhile, Mr. Fernandez said the planned merger between the Philippine Stock Exchange and Philippine Dealing System Holdings Corp. (PDS) is already out of the hands of the SEC, as the commission has already given its approval.

“As far as I know, we have spent everything we have to spend on our end. On the other hand, if there are business negotiations, it’s up to them. We spent what we had to spend,” he said.

PSE President and General Manager Officer Ramon S. Monzon said on August 15 that the planned acquisition is expected to be completed in the coming months as part of its growth plans.

The market operator aims to buy as much as 100% of the PDS as part of efforts to merge the country’s capital market infrastructure.

The Bankers Association of the Philippines said it expected an o in early AugustFfer from the PSE to buy the group’s 21% stake in PDS, the operator of the Philippine Dealing and Exchange Corp., which focuses on the Ffixed income market.

The PSE has a 20.98% stake in PDS, while BAP members and institutions have a 21% stake.

In 2017, the PSE almost completed the acquisition of PDS. However, the SEC blocked the transaction because it would violate the individual ownership limit under the Securities Regulation Code. — Revin Mikhael D. Ochave