The Securities and Exchange Commission (SEC) announced it will issue six memorandum circulars in the first quarter, signaling its agenda for market reforms in the coming years. The first circular, expanding assets eligible under real estate investment trusts (REITs), was released earlier this month.
SEC chairman Francis E. Lim said the upcoming circulars will cover key reforms, including minimum public ownership for initial public offerings (IPOs) and term limits for independent directors. “All of them, the tiered IPO, independent directors, will be in the first quarter,” Lim noted.
The proposed IPO rules include a tiered public ownership requirement, designed to balance market liquidity, investor protection, and capital formation. The change could benefit major listings, such as Mynt, owner of e-wallet GCash, whose parent Globe Telecom has sought a lower minimum public float.
Lim also acknowledged resistance from some companies to the revised independent director rules, which would limit service to nine years while ensuring security of tenure to encourage independent decision-making. “This is to strengthen governance…so independent directors can speak up without fear of losing their seats,” he said.
The circulars are seen as laying the groundwork for long-term reforms to improve market competitiveness, transparency, and corporate governance.
