Philippines Structured Warrants Rules Open Market to New Investment Products

New Philippines structured warrants rules have established a regulatory framework allowing broker-dealers and investment houses to offer products linked to listed shares, bonds, indices and exchange-traded funds.

Under Securities and Exchange Commission Memorandum Circular No. 27, Series of 2026, issuers and guarantors must maintain at least PHP400m (USD6.4m) in unimpaired paid-up capital while structured warrants remain outstanding.

Non-collateralised warrants generally require an investment-grade credit rating or an acceptable guarantee, while each offering must have a minimum issue size of PHP20m.

Investors must undergo suitability assessments and sign risk disclosures before being permitted to trade the products.

The framework also establishes requirements covering liquidity, market making, risk management and product disclosures.

The regulations broaden the range of investment instruments available in the Philippine capital market while introducing safeguards addressing the additional risks and complexity associated with structured products.