SEC submits SRC changes to Congress
Enactment needed for its IOSCO membership
The amended version of Securities Regulation Code (SRC) has now been submitted to Congress, a move that will bring the Securities and Exchange Commission (SEC) somehow closer to a full membership at the International Organization of Securities Commissions (IOSCO).
SEC Chairperson Teresita Herbosa said, in an interview, that the agency already submitted to Congress the proposed amendments to SRC in a bid to fast-track its full membership at IOSCO, a global association of securities and futures market regulators.
"Congress already went on a recess but we gave it (SRC amendments) to the sponsors already," Herbosa told Business Bulletin.
At first, SEC was pushing to amend the Bank Secrecy Law in order to become an IOSCO member.
The Bank Secrecy Law or Republic Act 1405 prohibits any individual or government agency to scrutinize bank records of people engaged in frauds unless there is a court order.
According to the Department of Finance (DOF), this law is only hampering greater exchange of information and increased transparency in the Philippines.
But since the proposed changes in the Bank Secrecy Law was faced with too much criticism, SEC resorted to SRC amendments.
"We are not asking for the change in bank secrecy law anymore. We are just asking that in our proposed SRC, SEC will be allowed to look into bank accounts only if there's an ongoing investigation on some securities," Herbosa said.
"Once we are able to have those powers – to have direct access while conducting investigation and that we can share information with other securities commission – then we can already be a members of IOSCO," she added.
Herbosa said that SEC already presented to IOSCO the proposed amendments to SRC. IOSCO sets the global standards in securities regulations.
SRC allows the agency to act on issues against false securities registration statement; fraud in connection with securities transactions; manipulation of security prices; and insider trading in the capital market, among others.
A revised SRC will help SEC improve investor protection; facilitate the capital market better; execute a much efficient investigation against investment scams and other anomalies in the market, among others.
SEC earlier set aside the move to amend the SRC to focus on the Corporation Code amendments, which is now pending both in Congress and Senate.