The Securities and Exchange Commission (SEC) or the Commission is the national government regulatory agency charged with supervision over the corporate sector, the capital market participants, the securities and investment instruments market, and the investing public. Created on October 26, 1936 by the Commonwealth Act (CA) 83 also known as The Securities Act, the Commission was tasked to regulate
the sale and registration of securities, exchanges, brokers, dealers and salesmen. Subsequent laws were enacted to encourage investments and more active public participation in the affairs of private corporations and enterprises to broaden the Commission's mandates, powers and functions; and in recent years, to give greater focus on the Commission's role in capital market development, fostering good governance and enhancing investor protection. Subsequent laws enacted to broaden the Commission's mandates, powers, and functions were:
The SEC Reorganization Act or Presidential Decree (PD) 902-A in 1976, as subsequently amended by PDs 1653, 1758 and 1799, which reorganized the Commission to give it ample powers to protect the public and their investments. Under the Act, the Commission was reorganized into a collegial body; and was given additional powers and functions, including quasi-judicial powers over intra-corporate disputes as well as absolute jurisdiction, supervision and control over all corporations, partnerships or associations, that are the grantees of primary franchise and/or a license or permit issued by the government to operate in the Philippines. The Corporation Code of the Philippines or the Batas Pambansa (BP) 68 in 1980, which gave the SEC the mandate to register corporations, collect fees from registering corporations, and prescribe reportorial requirements. Along with the granting of authority to register corporations, it empowered SEC to reject articles of incorporation or disapprove any amendment thereto if the same is not in compliance with the requirements of BP 68. Likewise, it authorized SEC to promulgate rules and regulations reasonably necessary to enable it to perform its duties particularly in the prevention of fraud and abuses on the part of the controlling stockholders, members, directors, and trustees or officers of corporations. The Revised Securities Act or BP 178 in 1982, which repealed CA 83 in its entirety to give way to a new statute that would enable the SEC to keep pace with new and more complex securities instruments, trading vehicles and strategies. The BP 178 provided, among others, for a more sophisticated disclosure mechanism of securities to be offered to investors. The Securities Regulation Code (SRC) or Republic Act (RA) 8799 in 2000, which provided for the SEC reorganization to give greater focus on the Commission's role in capital market development, fostering good governance and enhancing investor protection. The SRC also provided for the transfer of the Commission's jurisdiction over all cases enumerated under Section 5 of PD 902-A to the Courts of general jurisdiction or the appropriate Regional Trial Court. The SRC also defined in clear terms fraud and criminal offenses related to securities transactions, and strengthened SEC regulatory functions over all entities dealing in securities. Today, the SEC is tasked with "serious responsibility of enforcing all laws affecting corporations and other forms of associations not otherwise vested in some other government offices." In addition to the aforementioned laws, the Commission also implements and acts either as lead or support agency in administering and enforcing special laws, the more significant of which are:
Anti-Money Laundering Act of 2001 (RA 9160, as amended)
Credit Information System Act of 2008 (RA 9510)
Credit Information System Act of 2008 (RA 9510)
Financing Company Act (RA 5980, as amended)
Investment Company Act (RA 2629, as amended)
Investment Houses Law (PD 129)
Retail Trade Liberalization Act of 2000 (RA 8762)
Foreign Investments Act of 1991 (RA 7402, as amended)
Omnibus Investments Code of 1987 (E.O. 226, Book III)
Anti-Dummy Law (Commonwealth Act 108, as amended)
Civil Code of the Philippines (RA 386, Title IX - Partnership)
Securitization Act of 2004 (RA 9267)
Special Purpose Vehicle Act of 2002 (RA 9182)
Access Devices Regulation Act of 1999 (RA 8484)
Real Estate Investment Trust Act of 2009 (RA 9856)
Personal Equity and Retirement Account Act of 2008 (RA 9505)
