Biz Buzz: Changing of the guard
As most people know, there are two bankers who are brothers and are both president of two of the country’s biggest banks. If tradition will be followed, these brothers will head the influential Bankers Association of the Philippines (BAP) one after the other.
Rizal Commercial Banking Corp. president (and eligible bachelor) Lorenzo Tan, president of the BAP since 2013, is about to end his third and final term on March 1.
Association members usually elect the first vice president as the next BAP president. If the same tradition is followed this year, Tan’s brother, Nestor, president of Banco de Oro Unibank, will be the next BAP chief. So in this case, the baton may be passed on to the same bloodline, more specifically to the kuya (older brother).
It was under Lorenzo’s term that the P2.25-billion takeover deal by the Philippine Stock Exchange of the Philippine Dealing System Group was conceived, negotiated and finalized.
We heard that Lorenzo was also active during the discussions with the Singapore Exchange Ltd. (SGX) which was previously reluctant to give up its stake at the price agreed upon by the BAP and the PSE. Although the deal has yet to be consummated pending approval of the Securities and Exchange Commission, it will be the next BAP chief’s task to see it through. Doris Dumlao-Abadilla
Back in business
REMEMBER the abrupt closure of Club Intramuros golf course over the holiday season because an errant golf ball smashed into the windshield of the Jaguar of an influential newspaper publisher (who then called the Department of Tourism and exerted “moral suasion” on its officials to “do something” about the issue)?
Well, Biz Buzz is pleased to report that the historic golf club has been back in business since last month.
To recall, the operations of the golf course—a very convenient location for non-Manila Golf and non-Wack Wack golfers who want to play a round or two, and still be able to head to their office after—were suspended last December because the victim complained about the hazard posed by errant balls. In particular, Club Intramuros did not have protective netting to keep balls from flying off course and endangering pedestrians (or pricey sports cars, in this case).
So some 300 staffers of the public course had to idly endure the holiday season without the customary generous Christmas tips they would otherwise enjoy from generous guests and patrons.
But we understand that the staff of the golf course took matters into their own hands and decided to do something about this, lest they endure a longer closure. We’re told that, on their own initiative, they decided to put up the nets around the more sensitive areas of the golf course around the historic walled city, thus getting the green light from the Department of Tourism to resume operations.
We called Club Intramuros to confirm this and the chirpy voice of the staffer on the other end of the line was a dead giveaway.
So now, the old Club Intramuros, which has been in operation since 1907, has something new to offer golfers: protective netting. Daxim L. Lucas
SEC scores
THE SECURITIES and Exchange Commission (SEC) scored one against Philippine Association of Brokers and Dealers Inc. (PASBDI) in a legal battle over certain provisions of the Securities Regulation Code (SRC) implementing rules and regulations (IRR) 2015, including the mandated disclosure of beneficial ownership of shares.
The Regional Trial Court of Mandaluyong City has dismissed PASBDI’s petition for temporary restraining order (TRO) and preliminary injunction to enjoin the SEC from implementing certain provisions of the 2015 IRR.
“In the present petition, the application is not even supported by affidavits clearly showing facts and circumstances relative to the great or irreparable damage that would allegedly result to the petitioner’s financial status and business reputation as well as to the capital market of the Philippines in its entirety, if such application will not be granted by the court,” the court said in an order dated Jan. 20.
The questioned provisions included amendments to increase transparency in the dealings of brokers and dealers; to comply with anti-money laundering laws; and to promote investor protection.
PASBDI had also opposed the requirement that brokers and dealers provide the SEC with a comprehensive information technology plan, business continuity, disaster recovery plan, risk management manual and internal control procedures as a prerequisite for registration. From the point of view of the SEC, these requirements “ensure the competence of brokers and dealers to promote and protect the investments of their customers.”
On the questioned amendments requiring disclosure of beneficial owners of shares of stocks, the SEC explained that this was a requirement “necessary to further efforts against money laundering” as well as to comply with a Supreme Court directive in Gamboa vs Teves that required the SEC to look into the beneficial ownership of corporations and ensure compliance with the limit on foreign ownership.
“We welcome the denial of the application for TRO and writ of preliminary injunction,” said SEC chair Teresita Herbosa. “The amendments introduced in the 2015 SRC IRR are designed to address varying concerns. They are intended to enhance investor protection, address regulatory gaps, strengthen the market and regulatory structures, and adopt global best practices. I believe the final version faithfully implements the statutory requirements as mandated by SRC.” Doris Dumlao-Abadilla
Philex shines
Its parent firm, the PLDT group, may be in a state of flux—given the recent spate of high level personnel changes—but it’s business as usual at the country’s largest miner, Philex Mining Corp.
And by business as usual, we mean they’re still winning awards and recognition left and right, regardless of the bad press the mining industry has been subjected to over the last five years or so.
Recently, Philex Mining received the Asean Corporate Governance Award as having the best corporate governance practices among publicly listed companies in the Philippines in 2015, besting a large field of 263 other contenders.
The company is also among the top 50 publicly listed companies in the Asean in this field. The Asean Corporate Governance Awards is considered the region’s most prestigious in recognizing companies that implement good corporate governance in their operations and services.
Last year, Philex Mining also continued to excel in corporate governance practices among local listed-companies having been one of the Top 5 firms in corporate governance at the 4th Annual Philippines Stock Exchange Bell Awards.
These, of course, mean that the mining firm’s head of public and regulatory affairs, Mike Toledo, has been in demand in the speaking and lecture circuit.
Toledo—who is also the overall head of PLDT group’s media bureau—recently delivered a keynote address to close to 200 guests at the 40th anniversary of the Australian-Philippine Business Council, where he cited the partnership between the two countries through the years and expounded on other possible areas for trade and investment.
And since his primary portfolio at the MVP group is mining, Toledo also emphasized the significant role Australia can play in mining in the Philippines, as well as in the upcoming Asean economic integration… well… maybe if the next administration proves to be friendlier to the industry. Daxim L. Lucas
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