THE GOVERNMENT is moving to expedite regulatory and market reforms aimed at improving business conditions and deepening capital markets with the appointment of the new Securities and Exchange Commission (SEC) chairman, the Department of Finance (DoF) said.

In a statement Sunday, the DoF said Finance Secretary Ralph G. Recto met with Chairman Francisco Ed. Lim on June 23.

The discussion revolved around “enhancing the competitiveness of the Philippine capital markets and facilitating the smooth entry of investments into the country,” it said.

The SEC has said that implementing the recently signed Capital Markets Efficiency Promotion Act (CMEPA) is among ts top priorities, to make the tax system for passive income simpler and more fair.

President Ferdinand R. Marcos, Jr. signed CMEPA into law on May 29.

The SEC also signaled closer monitoring of crypto asset service providers, requiring licensing and compliance with new guidelines.

The DoF earlier reported that it is committed to adopting the Crypto-Asset Reporting Framework (CARF) by 2028, which outlines the reporting and automatic exchange of information compliance rules for crypto assets.

Other reforms include developing a real-time application tracking system and reviewing its fee structure, including a temporary moratorium on fee increases.

The SEC also plans to simplify registration procedures for small and medium enterprises and opening the repurchase market to nonbank financial institutions (NBFIs).

The SEC will enhance capital market regulatory frameworks by clearly differentiating equity and debt regimes to streamline approval processes.

It will also update rules on credit rating agencies to boost credibility and market depth and aligning short selling and securities lending practices with global standards.

The SEC “will also revise the implementing rules and regulations (IRR) of the Real Estate Investment Trust (REIT) framework to better respond to market needs,” it said.

To promote collaborative governance between the public and private sectors, the SEC will prioritize reforms to the Capital Market Development Council and engage key business groups to assess public perception, the DoF said.

The regulator is set to develop a roadmap for alternative investment products and derivatives, including options, futures, and a potential commodity futures market, in a bid to “enhance risk management and expand investment options.”

The SEC operates under the supervision of the DoF and is tasked with protecting investors by ensuring fair and efficient markets, and facilitate capital formation by registering corporations and securities, supervising market participants, and enforcing securities law. — Aubrey Rose A. Inosante