PSE likely to elect new president tomorrow

MANILA, Philippines - The Philippine Stock Exchange (PSE) will likely to elect a new president tomorrow (Wednesday) as the board convenes for the first time this year.

A source, who did not want to be named, said PSE chairman Hans Sicat has been tapped to replace lawyer and former president Val Suarez, who resigned over conflict of interest issues.

“Hopefully, the PSE will have a new president by Wednesday,” the source said.

The source said the PSE is already scouting for a person to assume the chairmanship of the exchange once Sicat decides to accept the presidency. A possible candidate for Sicat’s current position is a former banker, whom the source declined to identify.

Suarez assumed the PSE presidency only last July 28, serving the shortest term (five months).

The resignation was an offshoot of a Securities and Exchange Commission order imposing a fine of more than P1 million on the exchange for breaching the securities law, with an additional fine of P1,000 for every day of delay.

For four months, the PSE and the SEC have locked horns over the appointment of Suarez, who is married to Milagros Cecilia Dollendo, president and managing director of brokerage firm JP Morgan Securities Philippines Inc., a trading participant.

A provision of the Securities Regulation Code, states that “the president and other management of the exchange to consist only of persons who are not members and are not associated in any capacity, directly or indirectly with any broker or dealer or member of listed company of the Exchange...”

Former bourse president Francis Lim resigned in January last year following a series of top and middle management resignations due to corporate governance issues.