By Revin Mikhael D. Ochave, Reporter
THE RECENT appointment of prominent lawyer Francisco Edralin Lim as the new chairperson of the Securities and Exchange Commission (SEC) received the backing of top corporate executives, business groups, and market analysts, who urged him to push initiatives to develop the local capital markets.
Philippine Chamber of Commerce and Industry Chairman George T. Barcelon said Mr. Lim, former president and chief executive officer (CEO) of the Philippine Stock Exchange (PSE) should pursue efforts to encourage small- and medium-sized enterprises to list on the local bourse.
“Compared with other Southeast Asian countries, the number of listed companies in our bourse is quite limited. Maybe it would be something that he would look into and provide support for the listing of small- and medium-sized companies,” he said in a phone interview.
Mr. Barcelon also pressed Mr. Lim to further improve the SEC’s systems and accelerate the processing of transactions.
On Tuesday, Malacañang announced the appointment of Mr. Lim as SEC chief, replacing Emilio B. Aquino, who steps down on June 6.
Mr. Lim was the president and CEO of the PSE from 2004 to 2010 and is a senior partner at the Angara Abello Concepcion Regala & Cruz Law Offices. Under the Securities Regulation Code, the SEC chairperson must be a lawyer.
Mr. Lim was also a former president of the Management Association of the Philippines and the Financial Executives Institute of the Philippines (FINEX).
In a Viber message, FINEX President EJ A. Qua Hiansen said Mr. Lim is expected to boost the SEC’s push for capital market development.
“We expect Mr. Lim’s leadership to drive the SEC in developing and strengthening our capital markets, ensuring a regulatory framework that is responsive to evolving market dynamics while promoting good, ethical business practices,” said Mr. Hiansen, who is also the chief financial officer of Del Rosario-led conglomerate PHINMA Corp.
“His reputation as a staunch advocate for the development of our capital markets, coupled with his dedication to safeguarding investors, makes him an exceptional choice. We are confident that Mr. Lim’s leadership will result in a positive impact on the SEC’s vital mission,” he added.
SM Investments Corp. President and CEO Frederic C. DyBuncio welcomed Mr. Lim’s appointment, saying that the Sy-led conglomerate remains supportive of efforts to help create an environment for the growth of businesses and communities.
“With his deep understanding of the capital markets, we look forward to continued progress in strengthening investor trust and good corporate governance,” he said in a Viber message.
AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said Mr. Lim is expected to drive market improvements following the recent signing of Republic Act No. 12214, or the Capital Markets Efficiency Promotion Act (CMEPA).
“He might be the best pick for SEC chair in this CMEPA era, since he’s from the capital markets and he knows how things work on both the regulator and trading participant side,” he said.
Under the CMEPA, the stock transaction tax was slashed to 0.1% from 0.6%, while the documentary stamp tax (DST) on the original issue of shares was cut to 0.75% from 1%.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said Mr. Lim is expected to work closely with the PSE and lawmakers to craft and accelerate measures to make the local stock market more attractive to companies and investors.
“We also expect him to push better corporate governance standards and stronger protections for minority shareholders so that investors would have greater confidence in participating in the equity market,” he said in a Viber message.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that Mr. Lim is expected to work on the integration of the PSE with its regional counterparts.
“We hope to see him push for further reforms, further development, and adopt more global best practices,” he said.