2002年-世界发展银行全球_Philippines___IOSCO_Objectives_and_Principles_of_Securities_Regulation_52页_604kb

Philippines Financial Sector Assessment Program Summary

I. Core Content Overview

The Financial Sector Assessment Program (FSAP) conducted by the World Bank and the International Monetary Fund (IMF) in 2001 assessed the effectiveness of securities regulation, soundness of market intermediaries, and development prospects of the capital markets in the Philippines. The assessment was based on the IOSCO Objectives and Principles of Securities Regulation, with the lead assessor being Noritaka Akamatsu, a World Bank Lead Financial Economist.

II. Main Findings Summary

A. Regulatory Framework

• SEC (Securities and Exchange Commission) is the primary regulator of the capital markets and their participants.
• BSP (Bangko Sentral ng Pilipinas) supervises non-bank financial institutions (NBFIs) that have ownership links with banks, quasi-banking functions, and foreign exchange services.
• Philippine Stock Exchange (PSE) is a self-regulatory organization (SRO) and has undergone demutualization, becoming a for-profit corporation. It is in the process of going public to reduce broker dealer dominance and enhance independence.

B. Legal Basis

• The Securities Regulation Code (SRC) serves as the main legal framework for securities regulation.
• The Corporation Code provides rules for company establishment and governance.
• Specific laws govern each type of NBFIs, including the Presidential Decree 129 on Investment Houses, the Financing Company Act of 1998, and the Investment Company Act of 1960.
• The General Banking Law of 2000 and BSP Manual of Regulations for NBFIs outline rules for quasi-banking and trust functions, and for universal and commercial banks engaging in securities business.

C. Market Structure

• The equity market is centered around the PSE, supported by PCD (Philippine Central Depository) and SCCP (Securities Clearing Corporation of the Philippines).
• Key market intermediaries include:
  • 44 Investment Houses
  • 174 Financing Companies
  • 176 Broker-Dealer firms
  • 19 Mutual Funds
  • 15 Investment Management Companies
• Investment Houses and Financing Companies can perform quasi-banking functions, requiring higher capital (P300 million vs. P100 million for Broker Dealers).
• Mutual Funds had total assets of slightly less than P10 billion as of end September 2001.
• Most NBFIs are owned or affiliated with commercial banks.

D. Market Performance

• The PSE lists 231 companies and one series of Small Denomination Government Bonds.
• Market capitalization at end August 2001 was P2,429 billion (US$47 billion), representing about 80% of GDP.
• Annualized market turnover declined to P173 billion (7.1% turnover) in 2001 from P781 billion (40% turnover) in 1999, indicating low liquidity.
• Low free float (about 15%) due to founder family ownership is a major factor in the low liquidity of the equity market.
• The debt market is dominated by government securities (OTC market), with Small Denomination Bonds listed on the PSE.
• Government securities total capitalization was P1,128 billion (30% of GDP) as of end July 2001, with treasury bills (T-bills) contributing most of the liquidity.
• Commercial Papers (CPs) are the second most important debt instruments, with a capitalization of P35 billion (as of October 15, 2001), but significantly more liquid than government securities (500% vs. 40% turnover).

III. Compliance with IOSCO Objectives and Principles

IV. Authorities' Response and Recommended Next Steps

• SEC plans to enhance staff training, computerization of data, and simplify accountability.
• PSE is in the process of demutualization, reforming its board, and going public. It is also working on spinning out its Compliance and Surveillance Group to become a dedicated SRO.
• Online filing system for company registration has been operationalized by the SEC, and electronic monitoring of net capital is being prepared.
• The Anti-Money Laundering Act (AMLA) is being implemented with the help of the Anti-Money Laundering Council.
• Legislative reforms are expected to include:
  • Revised Investment Company Act
  • Securitization
  • Special Purpose Asset Vehicle (SPAV)
  • Personal Equity and Retirement Account (PERA)
  • Financial Sector Tax Reform Bill
• The elimination of Documentary Stamp Tax (DST) on secondary market trading and securities lending/borrowing is expected to improve market liquidity.
• The Lending Company Act is being considered to transfer supervisory responsibility from the SEC to the DTI or local authorities for non-upgraded lending investors.

V. Conclusion

The Philippines has made significant strides in securities regulation and market structure reforms, but challenges remain in liquidity, minority shareholder protection, and regulatory clarity. The SEC and BSP have taken important steps to enhance enforcement, clarify roles, and improve transparency, but further rationalization of the legal and supervisory framework is needed. The PSE's demutualization and corporatization are key to enhancing market integrity and self-regulatory functions. With ongoing legislative reforms, the Philippine capital markets are expected to become more efficient, liquid, and attractive to domestic and foreign investors.