SEC proposes stricter beneficial ownership disclosure rules

The Philippine Securities and Exchange Commission (SEC) is proposing stricter guidelines for companies to disclose beneficial ownership information.

These revised rules, outlined in a draft memorandum circular, aim to consolidate existing regulations and enhance transparency.

Key provisions include prohibiting bearer shares, mandating disclosure of nominee arrangements, and requiring details on the nature of control exercised by owners.

The SEC will also impose proportionate sanctions for non-compliance and false declarations.

Developed in collaboration with Open Ownership and the United Nations Office on Drugs and Crime, these reforms align with the Financial Action Task Force's approach to beneficial ownership disclosure.

SEC Chairperson Francis Lim stated that strengthening this disclosure is crucial in combating corruption and financial crime.