SEC allows more entities to purchase securities

MANILA, Philippines — The Securities and Exchange Commission (SEC) wants to allow more entities to buy securities.

Under the proposed amendments to the Securities Regulation Code, the SEC shall consider as qualified buyers the following: registered securities dealers, accounts managed by a registered broker under a discretionary arrangement and registered investment companies, such as mutual fund companies.

The list of qualified buyers shall also include provident funds or pension funds maintained by a government agency or by a government or private corporation and managed by an entity authorized accordingly by the Bangko Sentral ng Pilipinas or the SEC, as well as a trust corporation that is authorized by the BSP to perform the acts of a trustee, among others.

Others that may be deemed qualified buyers include pre-need companies authorized by the Insurance Commission; authorized collective investment schemes; a listed entity that engages the service of a professional fund manager; and a foreign entity that, if established or incorporated in the Philippines, would be covered by the enumeration.

As an extra leeway, the SEC may also determine as qualified buyers other persons on the basis of such factors as financial sophistication, net worth, knowledge, and experience in financial and business matters, or amount of assets under management.