SEC wants more non-brokers in PSE board

The Securities and Exchange Commission (SEC) said yesterday the Philippine Stock Exchange (PSE) should reconstitute the membership of its board of directors to include more non-brokers by September if it is serious about regaining its self-regulatory organization (SRO) status.

SEC Chairman Lilia Bautista said six months starting from her assumption of office last March 25, should be enough time for the PSE to comply with the SEC's order.

The inclusion of more non-brokers to the SEC board is the only remaining hurdle for the PSE to regain its SRO status.

PSE president Ramon T. Garcia had previously stated that the stock exchange board is merely awaiting passage of the New Securities Act which it expects this June before acting on the SEC's order.

Garcia said the New Securities Act might already mandate the increase in the number of non-broker members in the PSE board.

The SEC order last March 10, stated that PSE should increase the number of non-broker board representatives equivalent to half of the current 15-man board. So far, there are only three non-member brokers in the PSE board.

The SEC suspended the SRO status of the PSE board and issued an order following the mass resignation of the stock exchange's compliance and surveillance group led by Ruben Almadro, in connection with the BW Resources investigation report.