Philippine Stock Broker Capital Requirements Could Rise Under SEC Review

Philippine stock broker capital requirements could be increased as the Securities and Exchange Commission seeks to strengthen investor confidence and deepen domestic capital markets.

SEC Chairman Francis Lim said the current PHP100m (USD1.6m) minimum capital threshold was established 25 years ago, while some brokerages continue operating with capital of about PHP30m.

Lim said brokers need sufficient resources to support investor education, compliance and increasingly complex regulatory obligations.

The proposal forms part of a broader reform programme that has helped facilitate planned listings including GCash parent Mynt and PLDT’s data-centre unit through a real estate investment trust structure.

Other reforms, including term limits for Philippine Stock Exchange broker directors, have faced legal challenges.

The SEC said it would study the capital proposal carefully before deciding whether to proceed, and no timetable for implementation has been announced.