The Securities and Exchange Commission is moving to increase the minimum capital requirement for stock brokers and dealers, aiming to strengthen financial safeguards and align the local market with international standards. Under the new proposal, open for public comments until October 14, all licensed broker-dealers will need to maintain a minimum unimpaired paid-up capital of ₱120 million. This replaces the current ₱100 million requirement and does away with the lower ₱30 million threshold that previously applied to certain existing firms not engaged in market-making activities.
Regulators explained that the adjustment accounts for the eroding effect of inflation on the real value of existing capital levels and follows global principles set by the International Organization of Securities Commissions, which call for capital rules to match the actual risks that intermediaries face. Firms that deal only in their own shares and do not hold client assets will be exempted from the higher requirement, keeping their minimum capital at ₱2.5 million.
The proposal also scraps the old surety bond requirements that went along with the previous ₱30 million capital tier, giving the Philippine Stock Exchange more flexibility to set its own bonding rules, which remain subject to SEC approval. To help the industry adjust smoothly, the SEC is phasing in the new rules: all broker-dealers must meet a ₱100 million minimum by December 31, 2029, and reach the full ₱120 million requirement by December 31, 2030. In the interim, starting December 31, 2028, exchange trading participants will need to post a surety bond of at least ₱20 million until they fully meet the new capital standards.
