Brokers oppose director term limits

The Philippine Association of Securities Brokers and Dealers Inc. (PASBDI) has opposed a plan by the Securities and Exchange Commission (SEC) to impose a mandatory 10-year term limit on broker directors of exchanges, arguing the move would strip the local bourse of critical expertise.

- JAMES A. LOYOLA

In a position paper filed with the regulator, the industry group—which represents trading participants of the Philippine Stock Exchange (PSE)—warned that the proposal fails to recognize the structural role of broker directors.

The association is currently chaired by Vivian Yuchengco, who has served as a PSE board director for 28 years. While PASBDI supports the SEC’s governance reform mandate, it argued that the specific measure risks exacerbating governance deficiencies that currently impede the development of the local capital market.

The group’s opposition is based on an assessment against regional benchmarks and recent reviews by Paris-based Organization for Economic Cooperation and Development (OECD).