Published May 21, 2026 4:35pm + Add GMA on Google Make this your preferred source to get more updates from this publisher on Google. The Securities and Exchange Commission (SEC) on Thursday announced it has imposed a 10-year cumulative term limit for broker-directors of exchanges.In a statement, the SEC said the move is part of efforts to strengthen governance standards, promote fair representation, and align market regulation with international best practices.The corporate regulator said under its Memorandum Circular No. 17, Series of 2026, issued on May 21, a broker-director —individuals representing trading participants on an exchange board— may serve for a maximum cumulative period of 10 years, whether consecutive or intermittent, in the same exchange. It added that after five cumulative years of service, a broker-director must observe a one-year “cooling-off” period before becoming eligible for re-election.To ease the transition, the SEC said its circular provides a two-year transition period for incumbent broker-directors, who may complete their current term and remain eligible for election in the next two annual elections. It added that during this period, the exchange for the equities market is expected to undertake a phased reconstitution of its board to enhance representation, diversify expertise, and strengthen minority shareholder protection.The SEC noted that the measure is consistent with principles of the International Organization of Securities Commissions, which emphasize fair representation in the governance of self-regulatory organizations such as exchanges.“Strong institutions require regular renewal, independent oversight, and broader representation,” said SEC chairperson Francis Lim.“By setting reasonable term limits for broker directors, the SEC seeks to strengthen market governance, mitigate potential conflicts of interest, level the playing field among the different categories of directors in exchanges, and align our regulatory framework with internationally recognized standards, while ensuring a fair and orderly transition,” added Lim. —AOL, GMA News