PSE welcomes nomination of SEC’s Aquino to Nomelec

The Philippine Stock Exchange (PSE) has welcomed the appointment of Jose Aquino, head of the Market Regulations Department of the Securities and Exchange Commission, to the contested chairmanship of the powerful Nominations and Elections Committee (Nomelec).

In a statement, PSE corporate secretary Francisco Villaroman said the appointment of Aquino "reflects the position of the exchange that what is good for the market supersedes the interests of individuals in the exchange.

He said the decision of SEC Chairperson Lilia Bautista to put Aquino as chairman and presiding officer of the Nomelec will give the PSE the opportunity "to focus on the task of building the capital markets by putting aside petty intramural politics."

A group of broker-directors led by Robert Coyiuto Jr. has assailed the earlier designation of Villaroman as Nomelec chairman, citing his alleged partiality that runs counter to the provisions of the Securities Regulation Code.

The Coyiuto group charged that Villaroman’s appointment, made by PSE chairperson Vivian Yuchengco, to the Nomelec – which screens the candidates for the PSE board seats – can never be expected to perform an independent or non-partisan task, "as it goes without saying that he owes his loyalty to the appointing authority rather than to the exchange."

Yuchengco, however, clarified that it has been the practice for the incumbent PSE corporate secretary to also sit as Nomelec chairman, as in the case of the previous board with Edgardo Guevarra occupying both positions.

The conflict turned for the worse when Coyiuto’s bloc walked out in protest during the last PSE board meeting, prompting exchange officials to seek the opinion of the corporate regulator, the SEC.

In a majority decision last week, the SEC upheld the appointment of Villaroman as corporate secretary and at the same time, planned to take the heat out of the Nomelec chairmanship issue by replacing Villaroman with Aquino.

Villaroman said he had, in fact, vioced out to Yuchengco his plan to take a replacement as Nomelec chairman upon the completion of the nomination and election rules.

This was necessary, he said, to "keep the peace" and put what has been a contentious issue to rest.

He also praised Aquino as highly-qualified for the post due to his expertise in law and excellent track record.

Meanwhile, the Coyiuto group also expressed support to Aquino’s appointment in the five-man Nomelec.