Philippines’ SEC gives companies five years to comply with foreign ownership rules

6 Nov 2012

The Securities and Exchange Commission (SEC) in the Philippines has decided to give domestic companies that breach the country’s 40% limit on foreign ownership, up to five years to redress the situation – based on new draft rules for Philippine corporations released on Monday. The SEC’s proposed new rules effectively implement the 9 October Supreme Court ruling on the foreign ownership of dominant carrier Philippine Long Distance Telephone Company (PLDT) — a decision which has potential implications for Filipino firms as the country’s High Court has set down specific definitions on how the 60:40 ownership rule (which favours Filipinos) should be calculated. Industry watchers have welcomed the SEC’s move however, saying that the release of the draft rules should provide a measure of confidence to investors.