SEC preparing firms for Asean integration

MANILA, Philippines - The Securities and Exchange Commission (SEC) is preparing local firms and self-regulatory organizations on the upcoming Association of Southeast Asian Nations (ASEAN) regional economic integration.

Mastering new schemes like the compliance with the single disclosure standard will allow local firms to easily raise fresh capital in the region, the corporate regulator said.

“These initiatives are some of the components under capital market integration of the ASEAN Economic Community (AEC) 2015 blueprint,” SEC said.

“The SEC and the other agencies of the government are all working toward implementing the initiatives of the capital market integration,” said SEC chairperson Teresita Herbosa.

In November, SEC conducted a consultative meeting on the ASEAN disclosure standards and review framework for multi-jurisdiction offering of equities and bonds in the ASEAN.

Representatives of the Philippine Stock Exchange, Philippine Dealing & Exchange Corp., listed companies, investment houses, law firms and government agencies attended the meeting.

The AEC would facilitate free flow of goods, services, labor, investments as well as capital in the economic bloc starting in 2015.

The capital market integration involves the creation of a list of the ASEAN disclosure standards, which will be forwarded to the ASEAN Finance Ministers and Asia-Pacific Economic Cooperation levels.

“The effort of having a common set of standards, can expedite the whole process, but each jurisdiction still has the right to look at it from its own law or set of rules,” Herbosa said.

The ASEAN Disclosure Standards Scheme and Review Framework were developed by the ASEAN Capital Markets Forum (ACMF), which is composed of securities regulators from 10 ASEAN member states including the SEC.

“The scheme aims to facilitate fundraising activities as well as to enhance the investment opportunities within ASEAN capital markets,” SEC said.

For instance, issuers offering equity or plain debt securities in multiple jurisdictions within ASEAN will only need to comply with one single set of disclosure standards for prospectuses, known as the ASEAN Disclosure Standards.

To date, securities regulators of ASEAN members are working to facilitate a streamlined review of a prospectus prepared under the ASEAN Disclosure Standards for cross-border offerings of equity securities and plain debt securities in ASEAN jurisdictions, or the review framework.