IFC, SEC gear listed firms for corporate governance code

International Finance Corporation (IFC), a member of the World Bank Group, and Securities and Exchange Commission (SEC) are now preparing companies listed at the Philippines Stock Exchange for the implementation of new corporate governance code.

A statement showed that five sessions were particularly organized between late March and mid-May at the Philippine International Convention Center (PICC) to train company key officers in implementing the new code.

This, as SEC requires all publicly listed companies to submit their new corporate governance manuals by the end of this month.

The new code seeks to increase the responsibilities of the board, ensure the competence and commitment of its directors, promote full disclosure in financial and non-financial reporting, and bring the corporate governance standards of Philippine companies closer to the international level.

Publicly listed companies are also required to state in their annual reports whether they have complied with the code provisions and explain reasons for non-compliance.

The SEC believes this approach will help address the market’s perception of overregulation.

“Following the release of the new code, we are working with IFC closely to encourage Philippine companies to adopt best corporate governance practices. This is crucial to the development of a strong and sustainable capital market in the Philippines,” said SEC Chairperson Teresita J. Herbosa.

The release of the new code is part of IFC and the SEC’s partnership to enhance the country’s regulatory framework and investment climate.

“IFC is committed to leveraging its global knowledge on corporate governance to support our partners to enhance their long-term competitiveness,” said Jane Yuan Xu, IFC Country Manager for the Philippines.