Strict ownership disclosure rules seen to boost investor trust

THE Securities and Exchange Commission’s (SEC) proposed rules requiring corporations to disclose their beneficial owners are expected to strengthen transparency and governance standards in the Philippines, potentially bolstering investor confidence and market integrity, according to analysts.

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“[The proposed rules] would further improve transparency and overall corporate governance standards in the country to further align with global best practices and further protect and uphold the interest of the investing public,” Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said in a Viber message.

He noted that stronger governance frameworks could enhance the country’s reputation among global investors and attract more long-term foreign capital.

The SEC has released for public comment a draft memorandum circular (MC), issued on Oct. 10 and open for feedback until Nov. 9, that seeks to strengthen and clarify rules on beneficial ownership disclosure to enhance transparency and prevent money laundering and corruption.

“The Commission adheres to Republic Act No. 11032 or ‘The Anti-Red Tape Act of 2007’ which declares the policy of the State to establish effective practices, aimed at efficient turnaround of the delivery of government services and prevention of graft and corruption in the government,” the SEC said.