Newly-appointed Securities and Exchange Commission (SEC) Chairman Francis Lim plans to require profitable government-owned and -controlled corporations (GOCCs) to conduct initial public offerings (IPOs) as part of efforts to deepen the Philippine capital markets.
Lim said in an interview following the formal turnover ceremony that the move could help attract more investors to the stock market by expanding the number of listed companies and encouraging broader public participation in ownership of key enterprises.
“Let’s take a look at them and see which are listable… That’s one of the low-hanging fruits,” Lim said in his first press briefing as SEC chairman.
Lim stepped down as a board director of Converge ICT Solutions Inc. following his appointment as SEC chairman. Converge chairman Jose de Jesus thanked Lim for his “invaluable contribution to the company” since he joined the board in 2020.
“We are truly grateful to Director Francis for his steadfast guidance to the organization in the past five years. His wealth of experience in commercial and corporate law served us well in strengthening our organizational structure and putting in place the necessary guard rails for good governance, particularly during our early days as a publicly-listed company,” de Jesus said.
Converge president and co-founder Maria Grace Uy said Lim was also instrumental in uplifting the company’s corporate governance practices, improving risk management, increasing transparency and enabling the company to attract high-calibre talent.
Among the country’s most profitable GOCCs are Land Bank of the Philippines, Development Bank of the Philippines, PAG-IBIG Fund and Philippine Ports Authority.
Lim said that while laws requiring firms receiving incentives to go public are already in place, these are not fully implemented.
“The Philippine capital market has been lagging behind. Inclusive growth demands deeper, broader, and more accessible capital markets. We will leave no stone unturned to catch up,” Lim said.
Lim also noted the need to simplify regulations, unlock capital flows and promote trust in the Philippine capital markets.
He also vowed to continue reforms aimed at streamlining SEC processes, supporting small businesses and boosting financial literacy across educational institutions.
Lim plans to “resolve all pending applications quickly and responsibly,” in line with time frames provided by law.
“We will work to further simplify and streamline everything we ask from the public. I know that some steps have been undertaken along this line, and we are committed to pursue them with more vigor. Every requirement must be justified… Let’s make it easier to comply, and harder to delay,” he said.
Lim also cited the need to improve corporate governance to encourage more investors to put their “hard-earned money” in the local equities market.
Lim, who also served as president and chief executive officer of the Philippine Stock Exchange from 2004 to 2010, also supports the planned merger of PSE and the Philippine Dealing & Exchange Corp. (PDEx).
“Ideally, there should only be one exchange,” he said.
Prior to his appointment, Lim was a senior legal counsel at ACCRA Law with expertise in securities and capital markets litigation, bankruptcy, insolvency, corporate rehabilitation, antitrust and trade regulation.