The Securities and Exchange Commission (SEC) has broadened its accreditation framework for Personal Equity and Retirement Accounts (PERA) administrators, signaling a significant shift that will enhance public participation in the nation’s capital markets.
The SEC’s updated Memorandum Circular (MC) No. 14, Series of 2024, introduces new guidelines, expanding the pool of entities eligible to register as PERA administrators to include securities brokers, investment houses, and fund managers.
In a move that underlines the growing importance of retirement savings in the country, the SEC formally approved DragonFi Securities, a prominent stock broker, as a registered PERA administrator in its meeting held in December 2024.
SEC chairman Emilio B. Aquino highlighted the broader vision behind the initiative, saying, “By issuing MC 14 last September, we are recognizing the immense potential of our pension system to engage more Filipinos in corporate value creation and strengthen our capital markets.” He emphasized that the program will not only secure the financial future of individuals but also ease long-term fiscal pressures on the government.
The PERA program, a voluntary retirement savings initiative established under Republic Act No. 9505 (the PERA Act of 2008), complements existing social security and employer-based retirement plans, offering participants tax incentives to encourage personal savings for retirement.
To qualify as a PERA administrator, entities must meet stringent requirements. These include maintaining a net worth of at least P100 million, adopting a robust corporate governance manual, and demonstrating the technological and organizational infrastructure necessary to manage a diverse array of PERA investment products. Administrators are also required to ensure their staff is well-trained and equipped to educate contributors on the specifics of the PERA program, including its risks, benefits, and operational requirements.
The SEC’s expansion of accredited administrators is expected to increase market access and create more opportunities for Filipino investors to secure their financial futures, further cementing PERA’s role in the country’s retirement and investment landscape.
