MALACAÑANG has placed the Securities and Exchange Commission (SEC) back under the Department of Finance (DoF) from the Department of Trade and Industry (DTI).
Executive Order 37, signed by President Benigno S. C. Aquino III on April 19, will "ensure better coordination and effective implementation of strong and stable financial policies," Executive Secretary Paquito N. Ochoa, Jr. said in a statement.
"Given the global economic crisis, the administration intends to attain an effective implementation of policies for a strong and stable financial system that will lead to a financial sector that will be able to further economic growth and development of the country," Mr. Ochoa added.
The government is currently undertaking Subprogram 2 of the Financial Market Regulation and Intermediation Program (FMRIP) funded by a $200-million loan from the Asian Development Bank (ADB).
The FMRIP, reformulated and approved by the ADB Board last December, aims to support the government’s agenda of reforming the financial sector and developing the capital markets and other nonbank financial services.
It seeks to address inefficiencies in regulatory mechanisms, specifically governance and operational weaknesses in the SEC and the Insurance Commission, by strengthening enforcement coordination.
Trade Secretary Gregory L. Domingo, who will be turning over supervisory duties to Finance Secretary Cesar V. Purisima, confirmed that the Palace order was in line with the government’s financial reform agenda.
"Secretary Purisima wants to do a lot of financial reforms and SEC is critical to those reforms," Mr. Domingo said in a text message to BusinessWorld.
EO 37 revokes EO 800, issued in 2009 during the Arroyo administration, which took the SEC from DoF and placed it under the DTI to facilitate the coordination of policies and programs in the field of trade, industry and investment. The transfer was made at the time to facilitate DTI supervision of a crisis-hit pre-need industry.
The SEC was originally supervised by the Office of the President. Administrative functions were transferred to the DoF in 2000 via EO 192.
EO 37 will take effect immediately upon publication in a newspaper of general circulation. -- JDP
"Given the global economic crisis, the administration intends to attain an effective implementation of policies for a strong and stable financial system that will lead to a financial sector that will be able to further economic growth and development of the country," Mr. Ochoa added.
The government is currently undertaking Subprogram 2 of the Financial Market Regulation and Intermediation Program (FMRIP) funded by a $200-million loan from the Asian Development Bank (ADB).
The FMRIP, reformulated and approved by the ADB Board last December, aims to support the government’s agenda of reforming the financial sector and developing the capital markets and other nonbank financial services.
It seeks to address inefficiencies in regulatory mechanisms, specifically governance and operational weaknesses in the SEC and the Insurance Commission, by strengthening enforcement coordination.
Trade Secretary Gregory L. Domingo, who will be turning over supervisory duties to Finance Secretary Cesar V. Purisima, confirmed that the Palace order was in line with the government’s financial reform agenda.
"Secretary Purisima wants to do a lot of financial reforms and SEC is critical to those reforms," Mr. Domingo said in a text message to BusinessWorld.
EO 37 revokes EO 800, issued in 2009 during the Arroyo administration, which took the SEC from DoF and placed it under the DTI to facilitate the coordination of policies and programs in the field of trade, industry and investment. The transfer was made at the time to facilitate DTI supervision of a crisis-hit pre-need industry.
The SEC was originally supervised by the Office of the President. Administrative functions were transferred to the DoF in 2000 via EO 192.
EO 37 will take effect immediately upon publication in a newspaper of general circulation. -- JDP
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