The Securities and Exchange Commission (SEC) has established a 10-year cumulative service limit for broker directors at the Philippine Stock Exchange and similar exchanges, aiming to boost governance, ensure fair representation, and match global regulatory standards.
Under new rules, broker directors may serve up to 10 years total—whether straight or broken up—and must take a one-year break after 5 years of service before seeking re-election. Current holders get a two-year transition window to finish their terms and run in the next two annual elections. During this time, the exchange will gradually reshape its board to include more diverse expertise and better protect minority investors.
The policy follows guidelines from the International Organization of Securities Commissions. SEC Chairman Francis E. Lim stated the measure supports strong institutions through renewal and oversight, reduces conflicts of interest, and creates a balanced regulatory environment aligned with international norms.
