SEC imposes 10-year cumulative term limit for broker directors

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SEC Chairperson Francis Lim explains that the move aims to strengthen governance standards as strong institutions require regular renewal and independent oversight

MANILA, Philippines – The Securities and Exchange Commission (SEC) has imposed a 10-year cumulative term limit for broker directors of exchanges in a bid to strengthen governance standards and promote fair representation.

In a Memorandum Circular issued on Thursday, May 21, the SEC stated that a broker director may only serve a maximum cumulative limit of 10 years in the same exchange. After five cumulative years of service, a broker director must also observe a one-year cooling-off period before they are eligible for re-election.

Broker directors are board members of an exchange that represent brokerage firms or trading participants.