ILOILO CITY, Philippines – The Securities and Exchange Commission (SEC) said it is still working on an international accreditation to be able to take part in a regional cooperation which facilitates easier transfer of funds across borders.
SEC commissioner Manuel Gaite said the signing of statement of understanding for the Asia Region Funds Passport has already been slated for September this year, while the memorandum of understanding is being eyed before year-end.
However, Gaite said the Philippines still needs to be a signatory to the International Organization of Securities Commissions’ Appendix A of the multilateral memorandum of understanding to be able to join the Asia Region Funds Passport.
“The next round of evaluation (for IOSCO acceptance) will be in September this year. Hopefully, if we would be able to hurdle our membership with the IOSCO, then we would be able to join the funds passport,” Gaite said.
The Asia Region Funds Passport eases requirements for cross-border transactions and investments. Gaite said a mutual fund based in the Philippines need only get the approval of the SEC and show this permit to another country’s SEC to be able to sell the same products in that territory.
“It’s really the movement of capital between participating economies. Investors, say, in the Philippines, will have a chance to buy shares in Malaysia for example,” Gaite said.