SEC mulls term limits for PSE broker directors

After formalizing plans to enforce a mandatory term limit for independent directors of publicly listed companies, the Securities and Exchange Commission (SEC) is now looking at putting a term limit for broker directors of the Philippine Stock Exchange Inc. (PSE).

- By RICHMOND MERCURIO

SEC chairperson Francis Lim told The STAR that the proposal aims to introduce term limits for broker directors of the PSE, similar to the existing limits for independent and non-broker directors.

Lim said the PSE’s independent directors as well as non-broker directors currently have term limits, while broker directors do not have any.

“The intent is to level the playing field and provide other brokers the opportunity to serve on the PSE board,” Lim said.

“At this stage, it remains an idea under study — nothing final yet — but it’s certainly worth exploring,” he said.

Broker directors are persons who proportionately represent the PSE membership in terms of volume/ value of trade and paid-up capital, while non-broker directors are those who are not associated with any broker or dealer or member of the exchange.