The Securities and Exchange Commission (SEC) is advancing efforts to improve transparency in corporate ownership by proposing new rules requiring companies to disclose detailed information about their beneficial owners and the types of control they exercise.
On October 10, the SEC released a draft memorandum circular for public feedback, titled the Revised Guidelines on Beneficial Ownership Disclosure and Transparency. The draft aims to unify existing rules on how corporations registered with the SEC identify and report accurate beneficial ownership information.
Developed alongside Open Ownership and the United Nations Office on Drugs and Crime, the guidelines support global standards set by the Financial Action Task Force. Key measures include banning bearer shares, requiring disclosure of nominee arrangements, and imposing sanctions for false or incomplete reports.
SEC chairman Francis E. Lim emphasized that the move targets gaps that enable corruption and financial crime, reinforcing the government’s anti-corruption and anti-money laundering efforts. “This policy reflects our strong commitment to transparency and accountability, aligning the Philippines with international best practices,” Lim said.
The new rules will cover all SEC-registered entities, including corporations, partnerships, foreign firms, and their key officials. Beneficial owners must be reported under nine categories detailing different types of control, from ownership to board influence and nominee roles.
This reform marks a significant step toward greater corporate accountability and regulatory oversight in the country.
