SEC hails Vitug appointment as PSE chairman

The Securities and Exchange Commission (SEC) has welcomed the appointment of retired Supreme Court Associate Justice Jose Vitug as chairman of the Philippine Stock Exchange (PSE), saying the election of another non-broker to head the bourse sends a strong signal that the exchange is serious in its efforts to rid itself of its exclusive "old boys club" image.

Vitug, 71, was unanimously elected by the PSE board of directors last Wednesday as the new chairman replacing banker Peter Favila who was recently appointed Trade and Industry Secretary by President Arroyo.

Jose P. Aquino, head of the SEC’s Markets and Exchanges Department, said: "This (appointment of Vitug) is a good sign. This goes to show that the exchange is bent on improving its image. We’re happy to hear this."

Aquino said he is hopeful the exchange will be able to operate smoothly under the leadership of Vitug. "We really hope he will be able to unite the different factions in the exchange," he said.

Prior to his appointments, Vitug chairs the Market Integrity Board (MIB), the oversight body of the exchange’s surveillance arm. A recipient of numerous awards both here and abroad, Vitug is a senior professor at the Philippine Judicial Academy.

Before retiring, Vitug served as associate justice in the Supreme Court for 11 years. He remains a consultant in the Committees on the Revision of the Rules of Court and Legal Education and Bar Matters.

Vitug is also a noted authority in commercial and civil law and have authored several legal treatises and law books.

"Having a highly-respected, fair and no-nonsense former senior associate justice of the highest court in the land occupying the top post in our board is a welcome development for the stock market. It is a strong message that the PSE is serious in its efforts to promote integrity and professionalism in the stock market," PSE president and chief executive officer Francis Lim said.

"As chair of the MIB over the last 10 months, Justice Vitug has been the prime mover of several improvements in the PSE’s audit, compliance and surveillance body, including the refinement of the much-awaited rules on market regulation," Lim added.

Lim said the election of another non-broker to take the reins of the PSE strongly indicates that the PSE community is working hard towards unity. "I am particularly elated at the quiet and non-controversial way the PSE handled the matter. I salute the PSE board for showing the country that we, Filipinos, can put our act together if we want to, " he said.

PSE director and former chairperson Alicia Arroyo said Vitug is very much qualified for the job. "He is very well respected. He is known to be very fair and he listens very well to all stakeholders. This will allow the board to come up with sound decisions for a better market."