IFC, SEC to tweak Corporate Governance Code

The World Bank’s International Finance Corp. (IFC) will work with regulators in tweaking the Corporate Governance Code to make it more attractive to foreign investors.

In a statement Thursday, the IFC said it had signed a memorandum of understanding (MOU) with the Securities and Exchange Commission (SEC), under which they will partner to “strengthen the country’s regulatory framework and corporate governance practices.”

Specifically, the IFC and the SEC will revise the Corporate Governance Code as well as set best practices that Philippine firms should follow.

The IFC “will facilitate the exchange of information on regulatory reforms between SEC officials and international corporate governance experts,” it said.

Also, the IFC “will provide training to SEC officials to help them enhance the country’s corporate governance legal framework and advise them on draft laws and regulations” as well as organize corporate governance seminars and workshops designed for local companies.

Ultimately, the MOU between the IFC and the SEC “aims to raise market awareness of good governance to entice more foreign investment to the country.”

“By adopting good corporate governance practices, Philippine companies can enhance their competitiveness and attract foreign investment to fund their growth. This will help build a vibrant private sector and lead to sustainable economic development in the Philippines,” IFC Philippines country manager Jane Yuan Xu said.

“We will work together with IFC to improve our regulations and encourage Philippine corporates to adopt best corporate governance practices so that they can reap the benefits. These efforts are crucial to the development of a strong and sustainable capital market in the Philippines,” SEC Chairperson Teresita J. Herbosa was quoted by the IFC as saying.