SEC may lose quasi-judicial role

The Senate committee on justice and human rights will start deliberations tomorrow on a proposal to remove the quasi-judicial functions of the Securities and Exchange Commission.

Sen. Renato Cayetano, committee chairman, said that the measure, authored by Sen. Raul Roco, would transfer the corporate watchdog's quasi-judicial functions to regular courts.

"We will determine if allowing SEC to concentrate on its regulatory functions and on encouraging domestic and foreign investments will be the best for the stock market," Cayetano said.

Cayetano has invited SEC chief Lilia de Lima as well as officials of the Philippine Stock Exchange and other concerned persons to the hearing.

Roco said his proposal, embodied in Senate Bill 1047, will not only enable the SEC to devote more time to its other regulatory functions, but also ensure litigants that their cases will be decided by experienced judges.

He noted that the recent retirement of experienced and competent hearing officers in the SEC has adversely affected the disposition of cases. Recent laws, including the New Central Bank Act, have added to the load of the SEC, he said.

"The SEC will be burdened with additional responsibilities once the new Securities Act is passed," Roco said.

Under the measure, the Supreme Court may designate branches of the regional trial courts in Manila, Cebu and Davao to hear cases involving violations of the Securities Act and all duly registered corporations, partnerships or associations.

Roco expressed confidence that passage of his bill will help improve the business climate, ensure the continued flow of investments and speed up the administration of justice.

Cayetano said he would come up with a committee report before the start of the bicameral conference committee meeting on the new Securities Act.