Securities and Exchange Commission

The Securities and Exchange Commission is the agency of

the Government of the Philippines responsible for regulating
the securities industry in the Philippines. The SEC is an agency within
the Office of the President of the Philippines.
The SEC is currently headquartered in Mandaluyong City, Metro Manila.
MANDATE
The Securities and Exchange Commission (SEC) or the Commission is the
national government regulatory agency charged with supervision over the
corporate sector, the capital market participants, the securities and
investment instruments market, and the investing public. Created on
October 26, 1936 by the Commonwealth Act (CA) 83 also known as The
Securities Act, the Commission was tasked to regulate the sale and
registration of securities, exchanges, brokers, dealers and salesmen.
Subsequent laws were enacted to encourage investments and more active
public participation in the affairs of private corporations and enterprises to
broaden the Commission's mandates, powers and functions; and in recent
years, to give greater focus on the Commission's role in capital market
development, fostering good governance and enhancing investor protection.
Subsequent laws enacted to broaden the Commission's mandates, powers,
and functions were:

The SEC Reorganization Act or Presidential Decree (PD) 902-A in 1976,

as subsequently amended by PDs 1653, 1758 and 1799, which
reorganized the Commission to give it ample powers to protect the
public and their investments. Under the Act, the Commission was
reorganized into a collegial body; and was given additional powers and
functions, including quasi-judicial powers over intra-corporate disputes
as well as absolute jurisdiction, supervision and control over all
corporations, partnerships or associations, that are the grantees of
primary franchise and/or a license or permit issued by the government
to operate in the Philippines.

The Corporation Code of the Philippines or the Batas Pambansa (BP) 68

in 1980, which gave the SEC the mandate to register corporations,

collect fees from registering corporations, and prescribe reportorial

requirements. Along with the granting of authority to register
corporations, it empowered SEC to reject articles of incorporation or
disapprove any amendment thereto if the same is not in compliance
with the requirements of BP 68. Likewise, it authorized SEC to
promulgate rules and regulations reasonably necessary to enable it to
perform its duties particularly in the prevention of fraud and abuses on
the part of the controlling stockholders, members, directors, and
trustees or officers of corporations.

The Revised Securities Act or BP 178 in 1982, which repealed CA 83 in

its entirety to give way to a new statute that would enable the SEC to
keep pace with new and more complex securities instruments, trading
vehicles and strategies. The BP 178 provided, among others, for a
more sophisticated disclosure mechanism of securities to be offered to
investors.

The Securities Regulation Code (SRC) or Republic Act (RA) 8799 in

2000, which provided for the SEC reorganization to give greater focus
on the Commission's role in capital market development, fostering
good governance and enhancing investor protection. The SRC also
provided for the transfer of the Commission's jurisdiction over all cases
enumerated under Section 5 of PD 902-A to the Courts of general
jurisdiction or the appropriate Regional Trial Court. The SRC also
defined in clear terms fraud and criminal offenses related to securities
transactions, and strengthened SEC regulatory functions over all
entities dealing in securities.

HISTORY
The SEC was established on 26 Oct 1936 by virtue of the Commonwealth Act
No. 83 or the Securities Act. Its establishment was prompted by the need to
safeguard public interest in view of local stock market boom at that time.
Operations began on 11 Nov 1936 under the leadership of Commissioner
Ricardo Nepomuceno. Its major functions included registration of securities,
analysis of every registered security, evaluation of the financial condition
and operations of applicants for security issue, screening of applications for
broker's or dealer's license and supervision of stock and bond brokers as well
as the stock exchanges. The agency was abolished during the Japanese

occupation and was replaced with the Philippine Executive Commission. It

was reactivated in 1947 With the restoration of the Commonwealth
Government. Due to the changes in the business environment under Pres.
Ferdinand Marcos, the agency was reorganized on 29 Sept 1975 as a
collegial body with 3 commissioners and was given quasi-judicial powers
under PD902-A.
In 1981, the Commission was expanded to include two (2) additional
commissioners and two (2) departments, one for prosecution and
enforcement and the other for supervision and monitoring. Then on 01
December 2000, the SEC was reorganized as mandated by R. A. 8799 also
known as the Securities Regulation Code.

POWERS AND FUNCTIONS

The Commission shall have the powers and functions provided by the
Securities Regulation Code, Presidential Decree No. 902-A, as amended, the
Corporation Code, the Investment Houses Law, the Financing Company Act,
and other existing laws.
Under Section 5 of the Securities Regulation Code, Rep. Act. 8799, the
Commission shall have, among others, the following powers and functions:
(a) Have jurisdiction and supervision over all corporations, partnerships
or associations who are the grantees of primary franchises and/or a
license or permit issued by the Government;
(b) Formulate policies and recommendations on issues concerning the
securities market, advise Congress and other government agencies on all
aspects of the securities market and propose legislation and amendments
thereto;
(c) Approve, reject, suspend, revoke or require amendments to
registration statements, and registration and licensing applications;
(d) Regulate, investigate or supervise the activities of persons to ensure
compliance;

(e) Supervise, monitor, suspend or take over the activities of exchanges,

clearing agencies and other SROs;
(f) Impose sanctions for the violation of laws and the rules, regulations
and orders issued pursuant thereto;
(g) Prepare, approve, amend or repeal rules, regulations and orders, and
issue opinions and provide guidance on and supervise compliance with
such rules, regulations and orders;
(h) Enlist the aid and support of and/or deputize any and all enforcement
agencies of the Government, civil or military as well as any private
institution, corporation, firm, association or person in the implementation
of its powers and functions under this Code;
(i) Issue cease and desist orders to prevent fraud or injury to the
investing public;
(j) Punish for contempt of the Commission, both direct and indirect, in
accordance with the pertinent provisions of and penalties prescribed by
the Rules of Court;
(k) Compel the officers of any registered corporation or association to call
meetings of stockholders or members thereof under its supervision;
(l) Issue subpoena duces tecum and summon witnesses to appear in any
proceedings of the Commission and in appropriate cases, order the
examination, search and seizure of all documents, papers, files and
records, tax returns, and books of accounts of any entity or person under
investigation as may be necessary for the proper disposition of the cases
before it, subject to the provisions of existing laws;
(m) Suspend, or revoke, after proper notice and hearing the franchise or
certificate of registration of corporations, partnerships or associations,
upon any of the grounds provided by law; and
(n) Exercise such other powers as may be provided by law as well as
those which may be implied from, or which are necessary or incidental to
the carrying out of, the express powers granted the Commission to
achieve the objectives and purposes of these laws.

Under Section 5.2 of the Securities Regulation Code, the Commissions

jurisdiction over all cases enumerated under Section 5 of PD 902-A has been
transferred to the Courts of general jurisdiction or the appropriate Regional
Trial Court. The Commission shall retain jurisdiction over pending cases
involving intra-corporate disputes submitted for final resolution which should
be resolved within one (1) year from the enactment of the Code. The
Commission shall retain jurisdiction over pending suspension of
payments/rehabilitation cases filed as of 30 June 2000 until finally disposed.
Considering that only Sections 2, 4, and 8 of PD 902-A, as amended, have
been expressly repealed by the Securities Regulation Code, the Commission
retains the powers enumerated in Section 6 of said Decree, unless these are
inconsistent with any provision of the Code.

Bureau of Investments
The Philippine Board of Investments (BOI), an attached agency of
Department of Trade and Industry (DTI), is the lead government agency
responsible for the promotion of investments in the Philippines.
Taking the lead in the promotion of investments, BOI assists Filipino and
foreign investors to venture and prosper in desirable areas of economic
activities. The BOI is your one-stop shop in doing business in the Philippines
Legal Basis
Republic Act No. 5186 (September 16, 1967), otherwise known as the
Investments Incentives Act, created the Board of Investments
(BOI), delineating the areas where investments are encouraged
as well as the terms within which these investments will be
allowed.

Republic Act No. 5455 (September 30, 1968), the Foreign Business
Regulation Act, authorized the BOI to implement the laws
provisions on foreign investments.
Batas Pambansa Blg. 44 (November 1979), the Investment Promotion Act
for Less-Developed Areas, accelerated the establishment of
industrial and agricultural projects in less-developed areas by
granting additional incentives aside from existing ones.
Executive Order No. 226 (July 16, 1987), the Omnibus Investments Code,
consolidated all existing laws and decrees issued over the years
(except for BP Blg. 44) into a single Code, refining and
harmonizing the various incentives and effectively streamlining
registration and incentives availment procedures
Mandate
The Board of Investments (BOI) promotes and generates investments and
improves the image of the Philippines as a viable investment destination. It
pursues a planned, economically feasible, and practicable dispersal of
globally competitive industries.

Department of Budget and Management

Mandate
The Department of Budget and Management, created under Executive Order
No. 25 dated April 25, 1936, is mandated under this Order and by
subsequent issuances to promote the sound, efficient and effective
management and utilization of government resources (i.e., technological,
manpower, physical and financial) as instrument in the achievement of
national socioeconomic and political development goals.
Vision
By 2016, we envision the Department of Budget and Management to be:

A champion of results-oriented budget and management policies and

practices that enable the government to steer the country towards
meaningful development that empowers the poor and the marginalized;

An implementer of world-class budget and management systems that

enhance transparency, accountability and public participation in
governance;

An institution composed of highly competent and motivated public

servants who observe the highest standards of professionalism and
integrity.
Mission
The Department of Budget and Management shall lead public expenditure
management to ensure the equitable, prudent, transparent and accountable
allocation and use of public funds to improve the quality of life of each and
every Filipino.
General Functions
Following are the general functions of the Department:
Formulates the overall resource application
governments macro-economic policy;

strategy

to

match

the

Prepares the medium-term expenditure plan, indicating the programming,

prioritization, and financing of capital investment and current operating
expenditure requirements of medium-term sectoral development plans;
Undertakes the formulation of the annual national budget in a way that
ensures the appropriate prioritization and allocation of funds to support the
annual program of government;
Develops and administers a national accounting system essential to fiscal
management and control;
Conducts a continuing study of the bureaucracy and assesses as well as
makes policy recommendation on its role, size, composition, structure and
functions to establish a government bureaucracy imbued with a spirit of
public service;
Establishes the rules and procedures for the management of government
organization resources i.e., physical, manpower and other resources,
formulates standards of organizational program performance; and
undertakes or provides services in work simplification or streamlining of
systems and procedures to improve efficiency and effectiveness in
government operations;

Conceptualizes and administers

position classification plan; and

the

governments

compensation

and

Monitors and assesses the physical as well as the financial operations of local
government units and government-owned and/or controlled corporations.