Passing the torch
RECOGNIZING TRAILBLAZERS AT THE 2017 INDUCTION CEREMONIES AND 2ND IHAP AWARDS
BUILDING on the momentum of the contributions and achievements of investment houses in the growth of the country’s economy, Investment House Association of the Philippines (IHAP) marks another milestone as it shifts its dynamic leadership during the 2017 Induction of IHAP Directors and Officers last March 15 at the Mayuree Ballroom of Dusit Thani Manila.
The night was also the fitting venue for the second IHAP Awards, the annual event that recognizes and honors the deals and investment houses that have made their mark in exemplifying the best global practices and good corporate governance. Conceptualized by IHAP and made possible through its partnership with professional auditing firm KPMG R.G. Manabat & Co. ( KPMG RGM& Co.), the IHAP Awards aims to promote excellence by recognizing trailblazers that meet the gold standard.
The IHAP
The IHAP, established on July 19, 1974, is a non- stock, non- profit organization that aims to promote the role and functions of investment houses and enhance their contribution to the growth of Philippine business and economy — particularly through the development of the capital market. With 34 active full- time members and two fellows, it is the country’s premier association of investment houses that is committed to providing capital resources for business development and economic stability.
Aside from being a forum for the continuous flow of information among members, customers, clients and the financial community, the association also works closely with government regulators and policymaking bodies to harmonize investment banking operations and policies with monetary and economic goals. Also, the organization co operates with legislative, executive and other regulatory agencies in formulating laws, rules or regulations related to investment banking. For the members, the IHAP raises manpower productivity to global standards through continuous professional training and development.
Passing the torch
In an interview with The Philippine STAR, newly inducted IHAP President and Investment & Capital Corporation of the Philippines ( ICCP) President and COO Conrado Gloria, Jr., who takes over the helm of the association from former IHAP President Manuel Tordesillas, discussed how the turnover of leadership signals a slight shift in focus for the organization.
“In terms of rebalancing efforts, we’d like to promote and shift focus to the medium- sized or emerging companies and industries that have great potential for growth. This is largely the middle- to- upper end of the middle market spectrum that supposedly embodies the entrepreneurial spirit and that which is committed to adopt transparency and good governance. This is the sector wherein the local investment houses could have a distinct added value in terms of the financial advice and access to funding/ strategic investments that local investment houses can provide. To say that IHAP members will reach out to the MSMEs or micro, small, and medium enterprises may be a bit of a stretch for now. But selectively, promising entrepreneurs out there who have developed unique market propositions and business models can be guided and nurtured at early stages. I hope to start rallying the IHAP members – big and small institutions alike – toward this end,” Gloria shares.
Helping the president carry out his plans and vision for IHAP is the dynamic executive committee composed of: EVP for Internal Affairs and Treasurer Jose Luis Gomez, EVP for External Affairs Reginaldo Anthony Cariaso, VP for Product Development Gabriel Lim, VP for Equity Capital Markets Emilio Federico Galang III, VP for Debt Capital Markets Virgilio Chua, VP for Ways and Means Justino Ocampo, VP for Membership Jose Cruz, VP for Special Projects Manuel Tordesillas and Director and Corporate Secretary Jesus Mariano Ocampo.
With a new set of leaders, the current IHAP leadership is in the best position to pursue its initiatives that will strengthen the investment banking sector, which in turn, will drive the cogs of the Philippine economic wheel to enhance the value of Philippine trade, commerce and industry.
Achieving goals by working together
IHAP is at the forefront of working with government regulators and other important industry stakeholders to better accomplish its goals and objectives. “We would like to further foster the good working relationship with government regulators. By collaborating with the BSP, SEC, PSE and other bodies, we further improve and strengthen investor interest. Working with other parties to promote entrepreneurship would be the cornerstone of my administration,” Gloria discusses.
Last year, the IHAP Board conducted a series of meetings and dialogues with Bangko Sentral ng Pilipinas ( BSP) Financial Protection Consumer Department Director Prudence Angelita Kasala to discuss BSP Circular No. 898, Series of 2016. The circular grants customers with a “cooling- off period” of at least two banking days immediately following the signing of any agreement or contract, particularly for financial products or services with a long- term savings component or those subject to high pressure sales contract, to reconsider or cancel.
The IHAP is also in coordination with the Securities and Exchange Commission ( SEC) for concerns affecting investment houses in its meetings with Director Vicente Graciano Felizmenio, Jr. of the SEC– Market and Securities Regulation Department. Among those discussed were: the Securitization Act, Perpetual Bonds, Real Estate investment
This is the sector wherein the local investment houses could have a distinct added value in terms of the financial advice and access to funding/ strategic investments that the local investment houses can provide.
Trust Act and the amendments to the implementing Rules and Regulations of the Securities Regulation Code ( 2015 SRC IRR). During a separate meeting, the Board Members also discussed with SEC Comm. Ephyro Amatong certain SEC policies being implemented that affected the investment houses.
IHAP is also coordinating with the SEC regarding the latter ’ s request for IHAP to conduct a workshop on the end- to-end processes that banks go though in debt and equity offerings. The audience of the workshop would be the analysts and staff of SEC- Markets and Securities Regulation Department, Office of the General Accountant, Office of the General Counsel and Amatong’s office.
The second IHAP Awards
For the second IHAP Awards, the IHAP received an increased volume of self-nominations from IHAP members with operations in the Philippines, compared to last year. Judging this year’s entries was the Board of Judges composed of: 1. SEC Chairperson Teresita Herbosa 2. Philippine Stock Exchange ( PSE) President Hans Sicat 3. Philippine Dealing System Holdings Corp. ( PDS) President and CEO Cesar Crisol 4. Fund Managers Association of the Philippines ( FMAP) President Deanno Basas 5. Financial Executives Institute of the Philippines ( FINEX) President Benedicta Du- Baladad 6. Sharephil President Francis Lim
A total of 10 winners were chosen in 10 different award categories. The qualified entries came from self- nominations submitted by investment houses and universal banks, highlighting some of the best practices in the investment industry. After the Board of Judges forwarded the scores to the official tabulator, KPMG RGM& Co., ten entries made it to the roster of winners. 1. Best Advisory Deal of the Year: GT Capital Holdings, Inc. ( First Metro Investment Corporation) 2. Best Advisory House of the Year: First Metro Investment Corporation 3. Best Equity Deal of the Year: Cemex Holdings Philippines, Inc ( BDO Capital and Investment Corporation) 4. Best Equity House of the Year: BDO Capital and Investment Corporation 5. Best Fixed Income Deal of the Year: SMC Global Power Holdings Corporation ( BDO Capital and Investment Corporation/ RCBC Capital Corporation) 6. Best Fixed Income House of the Year: BDO Capital and Investment Corporation 7. Best Project Finance Deal of the Year: GNPower Dinginin Ltd Co. ( BDO Capital and Investment Corporation/ RCBC Capital Corporation) 8. Best Project Finance House of the Year: BDO Capital and Investment Corporation 9. Best Deal of the Year: GT Capital Holdings, Inc. ( First Metro Investment Corporation) 10. Best Investment House of the Year: BDO Capital and Investment Corporation
Roadmap for the investment banking industry
After the success of the second IHAP Awards, the new IHAP leadership looks to the future and sets its sights to a new goal.
“This year, we would like to add special categories that will recognize the deals and the investment houses that embody the association’s vision of promoting and supporting entrepreneurship, emerging businesses and industries. In addition, we would like to scrutinize the quality of deals beyond size and complexity, and include their potential economic benefits such as increasing productive capacities and enhancing market efficiencies,” Gloria explains.
Gloria reveals plans to come up with a study and craft a business plan that clearly sets the direction for future initiatives. This is in line with the IHAP Board’s current roadmap for the investment banking industry. This roadmap would study the roles of investment houses in capital markets and shall be provided to BSP to enable it to decide on the kinds of incentives that may be given to investment houses in light of their roles in strengthening the capital markets.
“For the investment banking industry, the challenge lies in determining which direction to take. We want to commission a relevant study and hopefully, put in place a roadmap for the investment banking industry. As times evolve, the needs also evolve. The challenges today are different and opportunities are presently abound out there. We need to revisit that, ‘ how can we remain relevant to the Filipino corporate and entrepreneurs?’ That is our roadmap. That is the kind of legacy that my administration wants to leave,” Gloria concludes.