SEC pushes reforms for competitive capital markets

The Securities and Exchange Commission (SEC) is urging capital market participants to collaborate in enhancing the competitiveness of the country's financial markets following President Ferdinand R. Marcos Jr.'s directive.

Chairperson Francisco Ed. Lim emphasized the SEC's commitment to reform, aiming to create a trustworthy environment for both local and international investors.

The Capital Markets Efficiency Promotion Act (CMEPA), which took effect on July 1, mandates the reduction of bureaucratic bottlenecks and transaction costs.

CMEPA reduces the stock transaction tax to 0.1% from 0.6%, eliminates documentary stamp taxes on mutual funds and unit investment trust funds, and imposes a uniform final tax rate of 20% on interest income.

To streamline processes, the SEC has prioritized resolving pending applications and requests within mandated time frames and continues to invest in technology for operational efficiency.