SEC: Integrity to boost investments

Francis Lim —MEG J. ADONIS

The integrity of the local business sector will boost investments, Securities and Exchange Commission (SEC) chair Francis Lim said on Friday as he urged finance executives to help the government in promoting best practices in corporate governance.

Citing international surveys, Lim said in his speech during the 8th Financial Executives Institute of the Philippines general membership in Makati City that the country’s integrity “is still being tested.”

“Integrity is the invisible currency of our markets. It underwrites every transaction, every investment, every decision. When we uphold it, resources flow to their best uses and investors come in. When we lose it, trust collapses—taking away with it market strength, economic vitality and faith in our institutions,” he said.

He said these reforms “are not just process improvements” and instead are “signals that ethical leadership can, and must, be built into the very architecture of our markets.”

“But let’s be clear: integrity cannot be legislated into existence. It must be lived—especially by those who control capital, make strategic decisions and influence market behavior,” he added.

Lim said other capital markets have surpassed that of the Philippines because of questions of integrity.

Thus, he called on stakeholders to help in encouraging more companies to list with the Philippine Stock Exchange, to require that governance standards are met in every transactions, to ensure integrity in companies’ financial statements and to champion investor protection.